60-100% annual interest rates. Weeks of paperwork for a simple loan. Dreams of business growth perpetually deferred.
This is the daily reality for millions of MSMEs (Micro, Small and Medium Enterprises) across the country. While large corporations enjoy streamlined banking services, small retailers face a brutal financial crisis that threatens their survival and stunts economic growth.
But fintech innovation and embedded finance solutions are finally changing the game.
The Problem: A System Built Against Small Retailers
Ramjan’s Frustration: A Story Repeated Millions of Times
Ramjan runs a small grocery shop in the neighborhood. Last week, he went to the bank to get a loan of 2 lakh taka for inventory.
He returned frustrated: “They are asking for so many papers, land documents and everything. I don’t have all that. What am I supposed to do now?”
Ramjan’s experience isn’t unique. It’s the daily reality for countless small retailers who need capital to buy stock but hit a wall of bureaucratic barriers.
Why the Traditional System Fails Small Business Owners
The Documentation Trap
Banks demand trade licenses, tax returns, bank statements, and detailed account books. Most small shopkeepers track their business in their heads or in a simple notebook. The formal paperwork simply doesn’t exist.
The Collateral Problem
Banks require land or property documents as collateral. But what about retailers who rent their homes and shops? Where would they get property to pledge?
The Credit History Paradox
Banks want to see a track record of previous loans repaid successfully. But if you have never taken a bank loan before, you don’t have this history.
The Profitability Equation
Processing a two lakh taka loan takes banks the same time and resources as a twenty lakh taka loan. The profit margin is higher on larger loans, so small business owners simply aren’t a priority.
The Devastating Impact: Where Retailers Turn Instead
Faced with rejection from formal banking, retailers have only two options:
Local Moneylenders: They will give you cash immediately, but at 5-10% monthly interest (60-120% annually). No business can sustain profitability under this crushing debt burden.
Supplier Credit: Some suppliers offer goods on credit, but you pay a premium and become dependent on a single supplier. Your negotiating power disappears.
The Result? Business expansion remains a fantasy. Retailers struggle to maintain current operations, let alone bring in new products, improve their shops, or open additional locations. The economic potential of millions of small businesses remains locked away.
The numbers are staggering: In Bangladesh alone, MSMEs represent over 90% of all businesses and employ millions, yet most lack access to affordable credit. This isn’t just their problem; it’s an economic crisis affecting national growth.
The Solution: Embedded Finance Revolutionizes Access
What is Embedded Finance?
Embedded finance integrates financial services directly into non-financial platforms. Instead of going to a separate bank, retailers access loans, credit, and payment services right where they already do business through their supplier platform or mobile app.
Think of it this way: you don’t need to visit a bank branch, fill out forms, or wait weeks. Financial services come to you, embedded in the tools you already use daily.
How PriyoShop is Solving the Crisis
PriyoShop understood that the problem isn’t just about money, it’s about a broken process. They’re partnering with financial institutions to bring embedded finance solutions directly to small retailers.
Partnership with BRAC Bank: Loans in Minutes, Not Weeks
The Old Way:
- Visit the bank branch multiple times
- Submit stacks of paperwork
- Wait weeks for approval
- Often get rejected
The New Way with PriyoShop + BRAC Bank:
- Apply directly from your mobile phone (Through PriyoShop Apps)
- Minimal documentation required
- Decision in minutes (10 minutes)
- Funds disbursed quickly (10 minutes)
Key Benefit: Time savings and accessibility. What took weeks now takes minutes. No standing in lines, no making files, no running around government offices.
Partnership with Community Bank: Your Business is Your Collateral
The Innovation:
Instead of asking “Do you own land?”, Community Bank through PriyoShop asks “How’s your business performing?”
They analyze:
- Regular purchase patterns: How much inventory do you buy monthly?
- Business longevity: How long have you been operating?
- Payment reliability: Do you pay suppliers on time?
Key Benefit: Your business data becomes your credit score. A retailer buying lakhs of taka in goods monthly and operating successfully proves their creditworthiness no property documents needed.
Partnership with LankaBangla & Mastercard: Credit Cards for Every Retailer
For the first time, neighborhood retailers can access credit cards, something previously reserved for salaried professionals and large business owners.
Beyond Payments:
- Builds credit history: Regular use and timely payments create a formal track record
- Enables larger loans later: Retailers payment history opens doors to bigger financing
- Maintains cash flow: Purchase inventory even when cash is tight
- Digital transactions: Make online payments and access modern commerce
Key Benefit: Financial inclusion and credit history building. Each transaction creates a record that strengthens your financial profile.
Quick Comparison: Traditional vs. Embedded Finance
| Aspect | Traditional Banking | PriyoShop Embedded Finance |
| Application Process | Visit bank branch, extensive paperwork | Mobile app, minimal documentation |
| Approval Time | Weeks to months | Minutes to hours |
| Collateral Required | Land/property documents | Business performance data |
| Interest Rates | N/A (most rejected) or 50-100% from moneylenders | Competitive bank rates (significantly lower) |
| Accessibility | Limited to those with formal documentation | Available to active platform retailers |
Real Impact: The Change is Already Happening
The Numbers Speak for Themselves
Nearly 2,00,000 retailers are now connected to PriyoShop’s platform, actively using these financial solutions to transform their businesses.
Concrete Results Retailers are Experiencing
Lower Interest Burden
Retailers previously paying 50-60% annual interest to moneylenders now access formal credit at a fraction of that cost. The difference goes straight to their profit margins.
Example: On a 2 lakh taka loan, the interest savings alone can be 80,000-1,00,000 taka annually. That’s capital that can be reinvested in business growth.
Increased Inventory Capacity
With credit facilities, retailers who couldn’t place large orders due to cash constraints can now stock more products.
Impact: More inventory → More sales → Higher profits → Business growth cycle begins
Peace of Mind
The psychological burden of owing money to local moneylenders with threats and pressure for immediate repayment is eliminated. Retailers can focus on growing their business rather than worrying about debt collectors.
A Real Retailer’s Journey
Consider Ratan, a shopkeeper in Dhaka who joined PriyoShop six months ago:
Before:
- Borrowed 1.5 lakh taka from a moneylender at 8% monthly interest
- Paid 96,000 taka in interest annually
- Couldn’t afford to stock popular items
- Constant stress about repayment
After:
- Applied for PriyoShop/BRAC Bank loan via mobile
- Approved in 20 minutes
- Interest rate 70% lower than moneylender
- Used a credit card for inventory purchases
- Savings allowed shop renovation and new product lines
This transformation is being replicated across thousands of shops nationwide.
What’s Next: The Path Forward
For the Broader Ecosystem
Government Action Needed:
- Policy frameworks that incentivize banks to serve MSMEs
- Simplified regulations that ordinary retailers can understand
- Tax benefits for financial institutions serving underbanked segments
Retailer Education:
- Training programs on basic accounting and record-keeping
- Digital literacy for using fintech platforms
- Financial planning and business management skills
More Organizations Must Step Up:
- The more embedded finance solutions available, the better for retailers
- Competition drives better rates and services
- Different models can serve different retailer segments
For Retailers: How to Access These Solutions
If you are a small retailer struggling with the same challenges as Ramjan:
- Join platforms like PriyoShop that offer embedded finance solutions
- Start building your business data by making regular platform purchases
- Use available credit facilities responsibly to establish your track record
- Explore credit card options to begin building formal credit history
- Connect with other retailers using these services to learn best practices
The digital transformation of retail finance is here. The question is: will you be part of it?
Conclusion: A Brighter Future Within Reach
The credit crisis facing small retailers is decades old. But for the first time, technology and innovative thinking are providing real solutions.
When Ramjan tries again for a loan this time through embedded finance platforms he won’t face the same rejection. He will get the financial support his business deserves, without the paperwork nightmares or predatory interest rates.
This matters beyond individual success stories. Small retailers are the backbone of our economy. They create jobs, serve communities, and drive local commerce. When they thrive, the entire economy benefits. Supporting them isn’t charity, it’s economic necessity.
The transformation has begun. Nearly 2,00,000 retailers are already experiencing the benefits. As embedded finance solutions expand, millions more will gain access to the capital they need to grow.
The future of small retail isn’t about struggling to survive, it’s about having the financial tools to thrive. That future is closer than ever before.
Are you ready to be part of this change?