20 October 2017

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Financial Friend for SMEs

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Ramit AroraAn online small business platform that creates access to a competitive environment of lenders to empower the entrepreneur—Biz2Credit was founded in 2007. The online platform matches entrepreneurs with credit solutions based on their business profile and preferences in a safe and price transparent environment.

With over 10 years of experience in the financial services space, Ramit Arora, Co-Founder and President of Biz2Credit, heads the company’s operations and handles larger bank and client relationships.  He also oversees all strategic web initiatives for the company.

Commenting on the status of financial management by entrepreneurs, Arora said, “In general SMEs are not well versed with the banks’ lending practices, nor are they aware of the available options. Indian MSMEs suffer from lack of a clear cut government policy, lack of awareness about government guaranteed financing programs, lack of infrastructure that hampers their productivity and high real estate costs and very high cost of funds.  Hence, lack of knowledge and information on financial sources is essentially what plagues the SME lending sector. Biz2Credit has been gradually empowering small scale businesses with relevant financial information and various channels to acquire funding. Through its unique model, the company allows borrowers to find the best lender match.”

Ramit previously worked with a Fortune 500 consulting company as a Finance Solutions Architect. He has a considerable amount of understanding about financial services risk management during his stint at Citibank.

Biz2Credit have a patented technology which is used by over 100 major banks in the US, credit rating agencies like Dun & Bradstreet, as well as major SMB service providers like Dell. Biz2Credit was ranked among 100 top emerging companies in the US by KPMG and Stanford University in 2008 as well as the No. 1 financing resource by Entrepreneur magazine in the fall of 2009. With over $400 million in funding and over 150,000 SMB users in the US, we are the market leaders in this space.

Further, adding on the aspect of standardization in the financial support to SMEs, Arora quoted, “There is a lack of standardization in the availability of finance for SMEs. There are a lot of intermediaries/brokers that help these SMEs. There are a lot of intermediaries/brokers that help these SMEs. However, there’s still a lack of one platform where SMEs can come and apply to multiple lenders. Fortunately, our acceptance rate has turned out quiet high. We see 60% response rate amongst SMEs and plan to scale it up to 10 lakh by next year.”

Entrepreneurs often resort to using personal credit cards, personal loans, loans from private moneylenders or their own savings to fund businesses when there are much better options. Credit cards charge high interest rates and tapping into home equity lines can hurt your credit rating. Further adding to this, Arora also said, “we try to help entrepreneurs in connecting with various sources of capital and other services to find the best deals and help them grow. We essentially take care of the entire funding process of a business, starting from finding the right lending institution, filling up an online profile, to actually sourcing of money from designated banks. Through our simplified web tool, a business owner can create a profile in less than 5 minutes. Based on his profile, our team then finds an accurate lending partner.”

 

 

 

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