The latest news is the Good Option, launched in January 2018. The tool is part of the Paid Market financial platform and offers financing to merchants that sell in the marketplace and perform well in sales. The loan adapts to each tenant’s financial possibilities, and the interest rate is lower than the market average.
Want to know more about the Good Option? So read this post all the way and find out how the program works and what benefits it can bring to your business!
What is the Good Option?
The objective of the Good Option is to encourage entrepreneurship and to support the development of tenants, covering underserved demands by banks. In short, the idea is to facilitate Free Market partner access to finance.
The service is valid for individuals and micro, small and medium enterprises. The value of the loans ranges from $ 1,000 to $ 350,000 reais – the average is $ 40,000. With regard to interest, the rate is 3.5% per month – lower than that charged by major banks in the country – and the default rate is about 2%.
The process of contracting the service is very simple and completely online: proposals are made directly on the platform, under the “Loan” section. The user is alerted of the offer by notification. In a few clicks, the seller chooses how much they want to borrow and what the repayment term will be.
An interesting detail is that the financing fits the economic possibilities of each shopkeeper. Risk analysis is defined by a platform management tool that combines more than 400 variables. That is, the company lends a value that effectively matches its financial capacity.
As soon as the merchant accepts the financing, the amount is immediately deposited in his Paid Market account – a type of Free Market bank account that provides a prepaid card. If you choose to receive the amount in the official bank account, the money takes a business day to be credited.
The installments, which can be up to 12 times, are automatically debited from the money available in the merchant’s account, which is notified via email. If there is not enough balance, the discount will be made as long as money is available until the full amount has been settled.
Good Option receptivity has been high. More than 20,000 Brazilian sellers have received funding, and 7 out of 10 people apply for a new loan after repaying the previous one. With the intention of further expanding the scope of the service, the company intends to extend credit to marketplace buyers in the coming months.
What are the requirements to get the loan?
To receive the financing proposal, the retailer must sell on the Free Market and meet the requirements for at least six months. Check below what they are:
- Sell more than $ 1,500.00 per month . The company’s cash flow is what guarantees payment. Therefore it is necessary to keep this movement constant;
- Have a green reputation , which is the platform’s top certification. To achieve this, some of the factors considered are: maintaining a good sales volume, having a complaint rate of less than 5% of total orders and being on time to deliver goods;
- Maintain a good credit history . This proves that the shopkeeper fulfills commitments and is reliable.
How to apply financing money?
Each shopkeeper can use the financing in their own way, applying what they consider most important to the company. The priority might be, for example, paying suppliers, expanding inventory, buying new equipment, investing in marketing, or improving cash flow.
However, it is necessary to carefully plan how the funding will be invested. Just like with any other type of credit, money should be used wisely and applied on what really is priority. So, evaluate what your real company needs are and what needs to be done to optimize sales.
The Good Option is a good option for those who want to invest in their own business.
Marketplaces have been an excellent alternative for those who want to increase sales. With this in mind, retailers should be aware of the trends that stand out in these spaces.
The Free Market has been betting on new strategies to broaden the scope of the brand, and the Good Option is one of them. The feature provides financings to tenants with good sales performance. The offers are for individuals and micro, small and medium enterprises, and the interest rates are lower than the market average.
The loan process is fast and fully online. The marketplace itself offers retailers who meet the required requirements, such as having a good cash flow and green reputation. The money is automatically deposited in the Paid Market account.
The investment must obviously be made with planning and applied prudently. With this in mind, countless opportunities open to shopkeepers. The Good Option is a good alternative for those who want to take a new step to consolidate their business and leverage sales.