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MSMEs in India pitch in about 45% to the country’s manufacturing output and nearly 40% to its exports. Despite being a key player in the Indian economy, MSMEs face enormous challenges in securing timely financing. So, in response, these small, albeit crucial, enterprises are now turning to financial technology or fintech companies as a means to fulfil financial requirements. Read on to know how fintech companies in India are revitalising financing for MSMEs by offering…

According to a survey in 2020, the economic slowdown had negatively impacted 80% of Indian companies with a reduced cash flow. A positive cash flow is important for effective business operations.  Whether you own a small or large business, sound financial planning is essential for proper cash flow management and ensuring financial stability during an economic crisis. It allows a business owner to identify the critical financial inefficiencies and pitfalls to avoid. Here’s a detailed…

Financing a business today is not as difficult as it used to be previously. One can opt for a business loan from any of the banks or other financial institutions. However, lenders have become more careful while providing loans to small businesses. This is mostly due to the economic fallout caused by the COVID-19 crisis.  Small and medium enterprises account for about 30% of the Indian GDP and nearly 40% of the total Indian export.…

A lot of AI-based lending apps have emerged in the country with the increased use of smartphones. Moreover, due to the government’s initiative to encourage digitisation of the banking sector, more fintech firms are hurrying to fill the gap in access to those loans. The emergence of these apps has brought about a sea of positive changes in the financial sector. For instance, these AI-based loan apps have made loan management simpler with the help…

For any business, there is nothing more frustrating than a project coming to a stop due to a shortage of capital.  Working capital is a measure of a firm’s liquidity required to meet the operating debt. Inadequate working capital indicates red flags in a company’s operations, i.e., more money is tied up in current liabilities than assets. If a business runs out of money, it cannot cater to existing customers and may fail to acquire…

According to the Sixth Economic Census conducted by the Ministry of Statistics and Programme Implementation (MoSPI), women account for 13.76% of the total entrepreneurs in India. This low representation can be due to many factors such as less favourable working conditions, socio-cultural biases, or lack of business resources.  To alleviate such issues and promote and encourage women entrepreneurship, the Government of India, national and private financial institutions have introduced/launched several credit schemes. Under these, women…

Business financial planning refers to the process of evaluating the capital needed, locating the obstacles, and devising strategies to reach profit targets. It is predominantly a process of formulating financial policies connected to procurement, investment, and management of finances. Financial planning works with numerous objectives. The list includes: Deciding capital requirements Shaping capital structure Making monetary policies, etc. Top 9 Benefits Of Business Financial Planning The advantages or benefits of business financial planning are countless. Below…

The small and medium business sector is an integral part of the Indian economy and truly serves as its backbone. MSMEs nearly contribute 8% to the gross domestic product (GDP), accounting for 45% of the total manufacturing output and 40% of the total exports in India. No wonder why they are called the ‘silent engines’ of economic growth.  However, contrary to large-scale companies, only 16% of the entire MSME sector enjoys access to formal credit…

Opting for a secured business loan puts assets at risk if the repayment is not made on time. Hence, most entrepreneurs choose unsecured business loans over secured business loans. GOI and financial institutions in India have rolled out several financing schemes to that end.  A business loan without security is ideal for MSMEs with fewer assets to pledge. Almost all Indian financial institutions offer unsecured business loans to businesses. Thus, a borrower remains under no obligation to pledge collaterals…

The availability of tailor-made financing options for businesses has changed the way companies structure their investments. It has presented them with an avenue to source necessary funding without worrying about collateral or facing dragged-out processes. Moreover, the lack of usage restrictions has allowed entrepreneurs to manage any expense with ease. Owing to its customer-friendly benefits, the business loan segment has registered a growth of 13.8% from March to September 2020. The outstanding balance in this…