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Purchase without installments. Credit product for small retail
20.11.2017 5577

Purchase without installments. Credit product for small retail

Modulbank offered small shoe retailers an alternative to buying goods from a wholesaler by installments.

Installment from a wholesaler

Owners of shoe brands often go towards small retail and provide the opportunity to purchase goods in installments. At the same time, a large amount of receivables complicates the life of the wholesaler: you have to freeze working capital, which could be used to develop the company and conquer new markets. It also happens that small shops have problems with the sale of goods, and they delay payments. In this case, the wholesalers assume the bank’s unusual function of monitoring and collecting overdue debts.

In turn, retail stores themselves often experience shortages in working capital. In the high season, shoe retailers need more money to purchase the necessary volumes of goods. In addition, there are also capital costs for the business (logistics, equipment repair, etc.).

As a result, installments become for everyone a real headache. To protect themselves, the wholesaler lays all the risks and associated costs in the cost of the goods.

The market as a whole is suffering, which cannot develop effectively. The buyer suffers, who ultimately pays for all these risks and non-returns from his pocket.

Solution from Modulbank

Realizing this problem, Modulbank has developed a loan product specifically for the customers of large wholesalers. This product can be a worthy alternative to an installment purchase. Wholesale companies will no longer have to perform unnatural functions for them and freeze their working capital. The bank will take on the whole headache. For retail stores, this is a convenient and inexpensive tool for expanding your business.

The bank offers a loan for the purchase of goods at 14% per annum, and for stores that are purchased from Modulbank partners, the rate is reduced to 12% per annum. Moreover, the interest rate is the same for all customers and does not depend on the term or amount of the loan.

The credit limit is up to 2 million rubles and is equal to the average monthly volume of purchases of a retail store. As a rule, this is more than the installment wholesaler offers (50-60% of the purchase volume). In addition, the bank issues funds for a longer period, the minimum requirement is to repay 20% of the debt and accrued interest on a monthly basis.

Obtaining a loan from a bank does not require any collateral or guarantee. The bank will not come with checks. The store also does not have to go anywhere - a loan decision is made online within one day. From the documents you need only a scanned copy of the bank statement, where the purchases from the wholesaler are visible. A client can send it via Modulbank chat in a personal account. If the wholesaler, from whom the store is purchased, is a partner of Modulbank, then the bank will receive the documents on its own.

Using money is convenient, the mechanism is the same as with a simple credit card. The client does not need to spend the entire amount at once - the credit limit is renewable. For example, a store received a limit of 1,8 million rubles, and spent only 800 thousand. In this case, the bank will take interest only from this amount. In this case, as soon as the client returns the bank 800 thousand, he will again be able to use them.

Reasons to use the product today:

- Seasonality. Before the New Year, trade begins the "high" season, it is necessary to purchase larger volumes than usual;

- Business expansion. You can replace your working capital with credit, and send your money to open a new point;

- Capital expenditures. You can replace your working capital with credit, and send your money to capital expenditures for a business (equipment, transport, etc.);

- Personal goals. You can replace your working capital with credit, and send your money to personal needs (buying a house, car).

Bank for small business

Modulbank, which used to be engaged only in settlement services and earned money on transactions (transaction operations bring the bank more than 50% of income), plans to make loans for the purchase of goods one of its main areas of activity and expects to attract at least 20 thousand new customers.

Modulbank was founded in 2014, and in addition to classic banking services, it provides its customers with small businesses the opportunity to use the services of an accountant, lawyer and business assistant.

The Bank has regional offices in more than 50 cities of Russia; more than 80 000 entrepreneurs use its services.

Modulbank offered small shoe retailers an alternative to buying goods from a wholesaler by installments.
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