POS is a Point Of Sale where the customers can buy any goods and services at agreed prices. The customers can make payments for their purchases through the available payment modes. The customers will get a digital receipt for the payment made.
Additional Reading: Indian Businesses Will Be Fined If They Dont Offer Digital Payment Facility
POS System is also referred to as a complete management system for the business where the business can track all the sales, receipts, inventory, employee management, customer relations. This helps the business manage its operations effectively and also keep a check on its expenses. Some of the common features of the POS System include the following,
- A convenient management and bookkeeping system for retail stores, receptions, etc.
- Helps in keeping the data of the suppliers updated
- Keeps track of timely issue of purchase orders
- Assists in inventory management
- Keeps track of all the customer invoices
There are several other aspects to the POS system. Some of such aspects are discussed below.
Components of POS System
POS system is made up of many components to ease the management process of the business. These components are mentioned below.
- Barcode Scanner
- Card machine
- Card and cash drawer
- Receipt printer
- Mobile phone, tablet, touchscreen or PC
Additional Reading: Top 7 Mobile Payment Apps For Small Businesses In India
Loan against providers
Many MFIs and NBFCs provide loans against the POS system. These loans are in the range of short-term loans and with flexible repayment options. The rate of interest is usually higher than regular business loans. The processing fees for these loans are nominal ranging from 2% to 5% of the loan amount.
The top lenders for loans against the POS system are mentioned below.
- SBI Power POS Loan
- Lendingkart Finance
- Flexiloans - Loans against POS
- Indifi – Merchant Advance Loan against POS machine
- Kotak Mahindra Bank
Additional Reading: Why You Should Run A Cashless Business
POS system has revolutionized the way small businesses or retail shops manage their operations and track their expenses and receipts. POS systems are easy to use and provide many features like loans and other benefits like efficient tracking of every aspect of the business and updated records.