Purchase Financing vs. Business Loans

Find the best financial solution for your needs by comparing business loans and purchase finance

RBI Registered

RBI Registered

RBI Registered

5000+ SMEs Trust Us

RBI Registered

₹ 3000 Cr+ AUM

Enter the loan amount, interest rate & loan tenure to compare
%
Months
%
Months
Purchase Finance
Foreclosure Charges
No Foreclosure Charges
Interest
Interest as per use
Total Payable
Pay Early & Save
Business Loan
Foreclosure Charges
Fixed Charges
Interest
Interest as per use
Total Payable
Fixed Charges
The calculations provided above are for illustrative purposes only. The actual amount and interest rates may vary based on factors such as creditworthiness, industry, and business type.

Know about Purchase Finance

Purchasing Finance is the working capital financing solution provided to SMEs. Due to a lack of cash flow management issues, SMEs are forced to buy raw materials at higher prices and tend to lose opportunities from reputable customers. In such situations, SMEs can consider purchase finance solution to bridge the working capital gap. It will help the SMEs get cash discounts on raw materials by making upfront payment to suppliers and also aids in the growth of the enterprise both on the bottom line and on the top line. Purchase financing solution enables enterprises to meet short term finance needs.

Frequently Asked Questions

What is the purpose of purchase finance ?
Purchase finance is a working capital loan offered to SMEs for purchasing raw materials on advance payment terms.
Does Oxyzo provide unsecured purchase finance only ?
No, Oxyzo provides both secured and unsecured working capital limit to SMEs. Unsecured purchase finance is completely collateral-free while secured purchase finance is given against bank guarantee or residential/commercial property
Is purchase finance similar to cash credit ?
Yes
What is the eligibility for purchase finance ?
The working capital loan eligibility depends on the business vintage and turnover. SMEs must have a minimum turnover of 3 crores and a business vintage of atleast 3 years to apply online.
What is the difference between purchase finance and business loan?
The key differences between purchase finance and business loan are:

Purchase finance involves a quicker and easier application and approval process than conventional business loans. As the process is affiliated by the seller or linked financial institutions, it can save you time and effort. Purchase financing can be tailored to meet your demands based on your unique situation and needs. You only pay interest on the amount you actually use. The loan amount can be repaid early without incurring foreclosure penalties. You don't have to receive the entire payment at once you can withdraw as needed.
What are the advantages of opting for purchase finance?
Pay as you go - Purchase Finance allows you to pay only for the amount of loan that you use. Unlike business loans, where interest is charged on the total loan amount from the beginning, with Purchase Finance, you only pay interest on the portion of the funds you have used.

Rotating credit - Purchase Finance has the benefit of rotating credit, giving you access to a credit limit that has been pre-approved and can be used repeatedly depending on your need.

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What is the maximum working capital limit offered by Oxyzo for purchase finance ?
It depends on the eligibility, your requirement and our comfort. If you meet our basic guidelines and our team has comfort in terms of credit assessment, we offer a decent working capital limit.

What our Clients say

Oxyzo's working capital solutions have helped me to increase my liquidity, which has in turn helped growing my business and better profit margins because I was able to improve my cash flow management. Would definitely recommend Oxyzo

- Kram Infracon Pvt Ltd
Testimonial

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