Though small and medium enterprises play a vital role in India’s overall economic growth, they are way behind when it comes to receiving timely credit assistance for their operations. According to a World Bank Report, formal SMEs alone contribute to up to 40% of a country’s GDP in emerging countries like India. This number could go up significantly higher when the informal or unorganized SMEs are included. By 2030, SMEs could generate up to 600 million jobs globally. However, the lending infrastructure for SMEs is not as comfortable as one would expect to support this growth. What are the challenges that SMEs face when it comes to infrastructure lending? What is the future of infrastructure lending in India? Let’s keep reading below to find the answers to these questions.

Supply Chain Finance (SCF) is one of the modern financing solutions for businesses. It makes the relationship between the buyers and sellers in a transaction better than before. This mechanism is also known as reverse factoring or supplier finance. SCF aims to offer working capital finance and other short-term credit to improve the liquidity of all the parties involved in the transaction.

In today’s highly dynamic business landscape, small and medium enterprises (SMEs) face various operational challenges, which include restricted cash flow or crunched capital. However, there is an innovative financial solution known as supply chain finance which has emerged as a savior for SMEs, providing them with the necessary liquidity and flexibility to grow and thrive.

Factoring finance is a financing tool in which a business can sell its invoices (accounts receivables) to a third party (known as a factor). The factor pays the business a certain percentage of the total invoice amount, after deducting its commission rates. Why does a business need this type of financing? How does this system work? What are the factoring advantages and disadvantages? This blog touches upon various aspects of factoring finance that will answer these questions and more.

For such businesses that are involved in the production or manufacturing of goods, business equipment loan plays a crucial role in meeting their financial needs and goals. Businesses that require heavy or specialized equipment or machinery, usually face the challenge of bearing the high acquisition cost. These kinds of businesses, which include manufacturing plants, construction firms, healthcare facilities etc. need significant financial resources to invest in the necessary types of equipment. Now these investments are not only large in amount but also very unique which the traditional business loans or credit facilities cannot meet. This is where the business equipment loan comes into play. As the name suggests business loan for equipment has a specific purpose – to finance the equipment needs of a business.

In today’s highly dynamic business landscape, small and medium enterprises (SMEs) face various operational challenges, which include restricted cash flow or crunched capital. However, there is an innovative financial solution known as supply chain finance which has emerged as a savior for SMEs, providing them with the necessary liquidity and flexibility to grow and thrive.

In 2018, the Reserve Bank of India introduced co-lending where both banks and non-banking financial institutions (NBFCs) could come hand-in-hand to serve the credit sector. These NBFCs are increasingly merging financial services with technological advancements. The idea behind co-lending is to combine the strengths of both parties. The established banks bring their experience, regulatory compliance, and access to funds, while the fintech companies contribute with their advanced technology, data analytics, and a customer-centric approach. This partnership allows them to offer loans more efficiently and to a broader range of borrowers.

The loan market in India has undergone a sea change from what it was a decade ago. Different types of financing options have emerged today to ensure that customers can get a hold of their favorite products/services, even if they don’t have the sources to pay for them upfront. One type of financing that is highly popular today, especially in the automobile sector, is dealer finance. What is this concept all about, and how does it help the parties involved in it? The following sections will answer these questions for the readers.

Embedded finance has become one of the most popular revenue channels for businesses today. Embedded lending has allowed even non-finance companies to integrate financial services into their products/services to provide their customers with an enriching and satisfying experience. For example, the online retail giant, Amazon, integrates financial services like payments, easy EMIs and other options so that the customer doesn’t have to leave the site at all. From shopping to payment, everything is done under one roof, and this is the power of embedded finance.

In the dynamic world of business, the need for funding is a constant reality for companies across all scales. Businesses are always on the lookout for funding solutions to bridge to meet their various costs, the prime being operational costs. Fortunately, the financial industry continuously responds to this demand by introducing newer arrangements and setups to cater to the specific lending needs of businesses.