POS business loan is a loan that is taken by businesses, especially those businesses that receive payments from their customers through a POS (Point-of-Sale) machine. In this loan some percentage installment is directly deducted from the daily card sales of the business, hence it is also called a flexible repayment loan.
On the other hand, in a traditional business loan, the repayment is done in the form of fixed EMIs, irrespective of the sales of the business or not. Moreover, in a POS business loan, there is often no need for collateral whereas in a traditional business loan, there is collateral, more verification process and documentation work as well.
