While the whole nation is rejoicing over the Government’s decision of demonetization of 500 and 1000 rupee notes, SMEs are a bit perplexed. Their biggest worry: Cash!
Eliminating the top two currency notes overnight is a great solution to curb fake currency but for businesses whose daily operations depend on cash transactions- it’s quite a hassle.
Today, right from family-owned businesses to buzzing internet startups, a lot of companies are facing cash crunch on different scales.
This hassle might be short lived, however it gives businesses a different perspective. Every business relies on cash; few are heavily dependent on it while some may just have to pay cash to an office boy. However, this current scenario exposes businesses to a vulnerability that they have perhaps ignored in the past but due to lack of options now have finally decided to combat it.
Something that was viewed to be ‘a slight inconvenience’ some days ago is now ‘problem of the day’.
Several business leaders and owners are now considering digital payments as a way out of the current cash crunch blues.
A taxi fleet business owner, who was facing cash crunch, recently came to us with the following issue – “How am I supposed to give incentives and daily allowances to my cab drivers now? Drivers prefer cash in hand over wiring of money into their accounts. Also, very few of them have bank accounts in the first place.”
We proposed giving Happay cards to each of the drivers and transferring cash on the cards. To use Happay cards, you don’t need to open a new bank account. Hence, the owner could get started with Happay in a day and could give money to his drivers in seconds, digitally.
In another instance, a Chief Finance Officer of a Mumbai-based gourmet retail chain was facing operational chaos due to heavy dependence on cash. His revenues come in cash and to run the stores his petty expenses are also mostly in cash. To manage he had to setup a complex system to make sure that no cash got jumbled up but all his investment in manpower (for cash delivery) and MIS infrastructure crumbled when demonetisation happened. He faced 2 key problems:
1.) Logistics: Take back all the cash from each store and replace the same with usable currency
2.) Reconciliation: Some vendors were paid, some were unpaid and some claimed that they were paid partly. Few store managers made store expenses from their own pocket. Everybody wanted to be paid back on one single day.
The CFO confessed to us that the usage of cash, until this point, was inescapable and everything seemed to be a ‘jugaad’. “I need a solution which can tackle both these challenges”. The recent ban on high currency notes was the final nail in the coffin and he too accepted that going cashless was the need of the hour. He signed up for Happay and each of his stores received Happay cards yesterday and today. He transferred funds to his stores quickly and could track all balances and spends via his dashboard.
Happay’s technology fits perfectly in this case where not only the fund transfer is super easy but also risk-free.
There are several other SMEs who are now considering going cashless. To cater to this need, we at Happay have started an Express Onboarding program where we help SMEs get started with digital payments in 2 Business days.
Here’s a quote from our COO, Varun Rathi, on this initiative – “In the past 3 days, the sudden spike in the number of card orders and activations has kept my team members working round the clock. We are trying to contribute to the cash cleansing drive by helping SMEs come onboard Happay as fast as possible and continue their business operations smoothly without cash creating any bottlenecks.”
Happay not only eases the distribution of money but also provides 100% tracking and control over every penny that goes out of the company’s pocket.
If you are looking for a way out of this liquidity crunch, get in touch with us at firstname.lastname@example.org or call 080-39510101. Alternatively, you can sign up for a demo via this link. Our business experts will get in touch with you.