sme loans india / sme business loans / types of sme loans
SMEs, or Small and Medium Enterprises, are the foundation of our country’s economy. They are essential in increasing employment rates, fostering innovation, fulfilling rising population demand, and improving the economy. However, this segment’s consistent challenge is the need for readily available funds. That is where SME loans come into the picture.
unsecured business loans / best unsecured business loans
One of the prominent causes of business failure is a lack of financial help. The requirement for capital infusion in a corporation is recurring. When a company is registered, it requires finances to set up an office and hire employees, followed by funds for research and development to introduce new products, and finally, funding to market that product. Given these conditions, new-age Fintech and traditional lenders have made unsecured business loans more accessible. But what exactly are these loans, and what factors affect their interest rates? Let’s find out.
NBFC or a non-banking financial company undertakes various activities and offers both banking services and financial services. While the Indian financial system has been dominated by banks, NBFCs have been evolving rapidly since their inception in the 1960s. Today, NBFCs have become an integral part of the Indian financial system as far as lending activity is concerned. Their positive impacts have increasingly spread across different sectors. So much that the total market value of NBFCs in 2023 was around USD 326 billion.
Over the past, there have been uncountable incidents of money laundering to dodge taxes, fund terrorist activities, and conceal bribe money. These incidents slowly impede economic growth and stress the government and the general public.
With the rise of the internet, eCommerce businesses have boomed in India over the years. This surge in eCommerce is also a result of technological advancements, specifically in the field of online store development and customization.
Growing a business without sufficient finances to meet operational costs is hard. As an entrepreneur, you must also manage costs such as salaries, raw material procurement, office stationery arrangements, and utility bill settlement to run your business smoothly.
loan management systems / loan system, LMS in banking
Over the last few years, loan management systems have revolutionized how lenders manage the loan cycle—right from the time of application to the time of disbursal. It centralizes customer data, automates repetitive tasks, improves communication, and accelerates decision-making, streamlining the entire loan process. That’s perhaps why almost every financial institution has introduced these systems into their workflow.
Purchase Order Financing / PO financing, PO in finance
Small businesses depend heavily on their cash flow to operate smoothly. They need funds to buy raw materials, pay utility bills, and meet other expenses incurred while running the business. However, there are times when the cash flow is unstable for reasons such as delayed payments, high overhead expenses, and lack of cash reserves. As a result, they need help to meet their orders on time, incurring huge losses.
Businesses need a healthy cash flow and sufficient capital to cater to their credit needs during their operations. However, not all businesses have these sources of funds at their disposal at all times. Businesses that run on a large scale approach the traditional banks for loans when they want to finance their credit needs. Small and medium enterprises (SMEs) cannot do so because they don’t have a strong credit history, and most of the time, these businesses are not registered. Hence, banks don’t consider them creditworthy enough to grant loans. That is where an innovative type of financing, known as invoice financing, can help these SMEs.