Market Credit 100% online
The release process is easy is easy, you can easily borrow your loan from the credit market without bureaucratic procedures, with just one click you complete the application online.
In addition to making the application online, the amounts released are in the right measure and dosed. The loan is based on sales made in the Free Market and also in the Paid Market.
In this way, as your sales grow, you have more access to cash with special interest rates to spin more business without affecting your capital and the running of your business.
But as with any of the dozens of loan options for business financing, you need to consider all possibilities, from private banks, credit companies (Fintechs and Peer to Peer), to the Free Market loan to see if they will really work for your small business.
Why was the loan created?
There are hundreds of thousands of active sellers on the Free Market and Paid Market platform . And many of these small business sellers are established – this means that many of these online sellers need borrowing money and financing for their small businesses at some point in their business.
Knowing that every small business owner knows that to secure access to personal and business loans can really be a big challenge.
If you try to apply at a retail bank, it is very likely that the loan application will be refused.
Did you know that about 80% of small businesses applying for bank loans are rejected.
It is definitely true that the credit market has grown a lot in the last few years and many alternative lenders have appeared every day, and with this, access to credit for small businesses and entrepreneurs has evolved. Still, applying for a business loan or business loan can take time and effort.
Loan Free Market and Paid Market
This type of loan for money financing, for those who are in need of financial resources. is the easy way for those who are already operating in the marketplace, the Free Market loan can be a great solution.
It is worth mentioning that the loans offered in the banking and financial segment in most institutions and lending companies usually require a series of prerequisites and credit conditions that are not so affordable for a good part of the sellers of MercadoLivre.
As for the proposal to offer a loan through Free Market, it has worked well in other countries like Argentina and Mexico. Its implementation and model offered in these countries are working very well.
The first target audience of the loan are the sellers of the platform, and thereafter, the credit will be offered and granted to site buyers as well.
How Does the Payment Market Loan Work?
The revenue created by MercadoLivre has no complications, the platform grants the lines of loans to its sellers, having primary goal helps them in granting money to working capital and cash flow with less bureaucracies and more affordable interest rates to improve and grow their business.
In practice it is to give a real alternative of financing for the sellers with good history. sellers who have as main source of income online sales on the website of Free Market and through Mercado Pago .
Direct cash in the account Market Paid to invest
In the international market, sites like Amazon, Ebay among others already have similar financial services.
Here in Brazil is the first initiative. In addition to the marketing need, a good fraction of the vendors who use the site daily as a means of work expressed that there was a need to split part of the sales in order to expand their business, and for that they would need financing for investments.
Who can get the loan in the Free Market?
The company has created a smart and practical credit system, using the monthly sales volume history, the Free Market uses as a means for the user (seller) to prove how to pay the debt.
That is, based on the monthly sales histories and the seller’s reputation on the company’s online site, it is enough for Free Market to make a simplified analysis to approve and release an amount as cash credit.
For whom is this kind of loan interesting?
Every user who uses the platform (individual or legal entity) usually receives a proposal to access the Free Market loan whenever they meet the requirements listed below for 6 consecutive months. Are they:
- Have registered sales that exceed R $ 1500 per month – will serve as guarantee
- If you are a seller in the Free Market, have sales volume and have a green reputation
- Have a good credit history and score
The amount requested as loan has the amount limited and equivalent to up to two months of products sold on the platform.
We can even say that the Free Market loan is a form of cash advance that will undoubtedly help greatly in expanding the small and medium businesses that operate on the buying and selling website.
Proposal to make loan through Free Market
As stated before, once the minimum requirements have been met, the offer is triggered automatically if you can not access the proposal in the section of the Credit Market , the most likely is that the platform has reset it because it has already passed more than 30 days from the shipment, so it is considered overdue.
The system of analysis is automatic, and once within the standard, the possibility of receiving the money to boost your business will be released and will appear in your account in the section mentioned above.
Always remember to review and fit within the conditions. The Mercado Mercado always sends other proposals when this is agreed.
How to receive the loan money?
Simple, with just one click, you simply choose to accept the offer of credit, done this, the money will be credited to your Payout account at the same time.
Despite the ” purpose of credit being for business “, once the money available in the account, it can be used as you wish. The money will be credited in up to 1 business day!
How to decide which loan offer is best for your business?
It is indisputable that the best loan offer is the one you or your company can afford.
Generally, if you are operating exclusively through Free Market and Paid Market and have been in existence for at least 3 months, Free Market offers solid terms for your sellers to borrow money for your business.
- Short-Term Loan : Always choose a short-term option if you need urgent loan and immediate resources for a quick return. Ex: buying inventory or paying for marketing campaigns are usually simple expenses that can be paid quickly.
- Long Term Loan : A longer term loan and larger amounts may be ideal if you are looking to expand the business beyond the Free Market or need to refinance large accumulated debt.
Why get financing with Free Market?
You may find it difficult to get loans and financing to start, build or grow your business through banks, financiers and traditional creditors. With so many volatile online businesses, institutions often shy away from offering financing unless you have a proven record of good credit and income.
If you need money, you have enough income, you are on the market long enough, and qualified to receive the Free Market loan, there is no reason not to hire them, especially if interest rates are better than other lenders.
Loans can help you build your brand, your starting capital, working capital and maintaining cash flow , especially when you do not have much experience or reputation in your industry.
However, once you start gaining traction, you can develop a more detailed business plan. Lastly, the more work and resources you put into your business, the greater your business will grow and thrive.
What is Free Market?
Mercado Mercado is currently one of the leading marketplace operating in Brazil and present in 16 countries in America and Europe being one of the largest e-commerce sites in the world.
The ML website works for those looking to buy as well as for those who want to advertise new and used products. In Brazil, thousands of people use the platform daily, it is also used by small, medium and large retailers and merchants to make their sales online.
The free market has more than 1500 official stores of great brands selling their products and services 24 hours a day, 7 days a week.
What is Paid Market?
MercadoPago is a Free Market service that allows platform users to receive and make payments online in a simple and fast way.
With this online tool, buyers can conduct their purchases on the ML and on sites associated with the service in three ways:
- Payments with ticket
- Payment with credit cards (with possibility of payment)
- Payment with current account debit
Mercado Pago works basically as a bridge between the seller and the buyer to facilitate the financial transactions and keep the payment portfolio in one place.
What is the Credit Market?
Mercado Mago is the newest tool that integrates the Mercado Pago financial platform. The objective with the services is to offer loans and financing to retailers that use the free market to sell their products and that have a good reputation and sales performance.
The recent modality of credit applies to both individuals and micro, small and medium-sized enterprises.
The value of loans starts with R $ 1,000 with concessions up to R $ 350 thousand reais – the average concession to sellers and shopkeepers is R $ 40 thousand per loan. As for interest, the rate is around 3.5% per month, much lower than the interest charged on major major retail banks.
8 Ways to Become a Successful Seller in the Free Market
The top sellers of Free Market offer several strategies that can help you take your company to the next level:
- Research your niche. If you sell products in several specific categories or focus only on one niche, know your market inside and out. Learn how others advertise and evaluate similar items to find a competitive advantage.
- Build a brand. Free Market has thousands of vendors all competing for the attention of customers. Stand out with a branding that highlights and makes you unique or the difference offering what others do not offer.
- Market your page. Even if you are not running your business on a dedicated site other than Amazon, this does not mean you should skip marketing. Reach out through forums and social media to familiarize people with your products.
- Encourage reviews and comments. Evaluations can be crucial for a Free Market seller, especially if you expect to qualify for the Paid Market Loan in the future. Give a solid customer service to have an edge over your competition.
- Make offers and promotions. Discounts on special dates can help build a qualified clientele and increase your seasonal sales. Plus, that extra revenue can compensate for the lull in cash flow over the vacation or reduced sales.
- Review your metrics. Understanding the data and finances behind your business – cash, sales, product displays and returns – can help you form a strategy to improve numbers in the future.
- Use the Free Market Loan from the Paid Market. The commercial loan is often cited as a vital and indispensable tool to step up your business. Although you can reduce your revenue a little, having money to pack, ship, and fulfill each purchase is usually cost-effective, saves time and money in the long run.
Like any business, selling in the Free Market requires careful attention, forecasting, and strategic planning. You may be tempted to sign the first online personal loan agreement offered on the Internet or by your bank when you urgently need money.
However, creating a business plan and considering your best options in the foreground is critical to finding interest rates and conditions for which you are eligible.
After all, knowing how to conduct your business consistently will lead to a more financially fit future and can help you in reducing the request for funding to reach your goals once you have money left over.