Tally add-on enables small biz to get loans – The Economic Times–14.06.2018

US-based online lending platform Biz2Credit is forecasting a sharp jump in lending to small and micro enterprises following the implementation of the goods and services tax (GST) in India. The company, which has built a $1.4-billion lending portfolio in the US, is growing its business in India by providing its technology platform to banks and finance companies.

Speaking to TOI, Biz2Credit co-founder Ramit Arora said the company has tied up with Tata Capital and three other lenders (two banks and a non-banking finance company) for providing small loans. “Besides providing a technology platform, we are also making available our proprietary BizAnalyzer score, which is computed using financials and other transactional data by building linkages with payment processors,” he said.

Biz2Credit has also tied up with accounting software company Tally, which is the predominant accounting software provider to small businesses. In terms of the agreement with Tally, a plug-in enables borrowers share finances with lenders and make all financial details available in real time. Following this increased transparency, four Indian lenders have lined up to provide loans.

“Small business lending in India is growing at 18-19%. Unlike the US, where we have a lending business, our objective is to be the largest repository of financial information of small businesses in the world,” said Arora. The company is looking at processing a billion dollars worth of transactions in India by next year.

Through the Biz2Credit-Tally add-on, lenders can access financials, GST returns and profit & loss statements for small businesses that use Tally. Lenders using the Biz2Credit platform in India can check during customer acquisition if the small business owner is a Tally user. If yes, then the Biz2Credit platform will generate a unique ID that the customer will use to invoke the add-on. With this add-on feature, users will be able to share relevant financial data instantly with Biz2Credit lenders. This data can be further used for establishing veracity of financial statements and underwriting.

(This article was originally published in The Times of India)

via Tally add-on enables small biz to get loans – The Economic Times

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