#AskPS
Sayan Ganguly .

What I am going to state here might sound really crazy.

However, it is just a thought of mine:

1. Does it really make sense or impact your leads growth if you give your products/services on credit?

2. If you do so, how do you ensure that delinquencies are nil or next to nil?

I just got fascinated with how Lazypay or Simpl work.

Seeking your answers and guidance in this regard.

Originally Posted Here
9 Comments

Arunaday Basu

This is what I understood:

"............
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... Lazypay... Simpl..."

Shraddha Bhalla

While I did understand your question, I don't have an answer for you.

Most product /courses run on payment plans and you have to agree to the terms that its not a Subscription and if they dont pay the amount agreed, they are liable.
There's an automated msg every month after that with a link to the payment gateway.
Hope this helps

Rob Peck

1). Yes. Many (most?) large corporates only operate on a PO basis.
2) Impossible😞. That TReDS system has made it a bit better for some clients.

Shrey Gupta

The second part can be ensured if the people that you are lending to also transact using your digital infrastructure and money actually flows through your system. Then you can deduct repayments from every amount that is transacted.

Simpl and Lazypay both offer a digital credit line to users.

Simpl works on an invitation only model and anyone can use Lazypay.

They both are able to offer a credit line at 0% interest because they charge the merchant who is receiving 2-3% of the transaction amount on every transaction which makes up for their interest.

Lazypay does a credit profiling of the user while giving them a credit line by accessing different information from their phone. Not everyone qualifies for a credit line on Lazypay

Sayan Ganguly

So, if I have a product I launched 2 weeks ago, some interested people signed up, and I gave them a credit of an 'X' amount to use it. And I promote my product along with the credit offer. How risky is my model?

Shrey Gupta

you'll need to partner with a NBFC or own a NBFC license to give anyone credit in India, an NBFC will do a thorough check of credit worthiness of any person before extending the credit.

Sayan Ganguly

Why do I need a NBFC license? Here I am only saying that if my product costs 5,000 a month (let's say in SaaS model), I am going to bear upto 15,000 Rupees for someone using the product for a particular tenure and they can pay me the amount later or I put in some model for getting that

Shrey Gupta

then you do it without any regulatory hurdle.

Sayan Ganguly

My question is not about the regulatory hurdles but risks involved and how are people handling those risks here.

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