So, I found something interesting today. A company called One Credit is offering to lend you cash to take care of your operational needs, and deducts a percentage of all your POS transactions, until the debt is serviced.
“One Credit and Unified Payments Services has cash solutions for every type of business, with the added advantage of flexibility and ease of repayments.” they said, in the brochure I found on their site.
It’s pretty simple. One Credit calculates your average POS sales for the past 6 months, then determines how much you can obtain from them. Your total repayment is calculated from that, and you will be given the requested amount in exchange for a percentage of your daily POS sales. At the end of each business day, an automated process will make deductions of the agreed percentage, until your loan is paid off.
How is the advance amount calculated?
50 transactions and above entitles you to 50% of your sales in the 6 month period, 40 – 49 transactions per week entitles you to 40%, and 30 – 39 transactions per week entitles you to 30%.
If you have less than 30 POS transactions per week, well, you probably shouldn’t be taking a POS-based loan.
If you sold an average of N1,000,000 via POS in 6 months, and you did over 50 transactions per week, you’re entitled to 50%, which is N500,000. When you’re given N500,000 cash, you’ll be expected to pay, say, N650,000. And moving forward, 15% of your daily sales will be deducted until you’ve paid back that N650,000.
Obviously, the amount of time it takes to pay back is determined by how well your business does in that period.
If you’re interested, you can download the brochure, here.