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Cash flow and financial management are extremely important for MSMEs, as it helps ensure that bills and employees are paid on time. This, in turn, helps the business grow. MSMEs fall into one of three categories: manufacturing, service industries, and a combination of the two. Effective management of cash flow is vital to the success of any business, and it can help you grow faster.  Cash flow management is the most imperative aspect of running a business. Studies have showcased that 60% of businesses fail because they aren’t able to…

For SMEs, access to finance is a significant challenge. They need affordable lending solutions, improved credit risk scoring, and less friction. But banks often fall short of these objectives. While each of these approaches has merit, if they fail to commit to one main approach, the result is a hybrid. Banks should focus on the unique challenges faced by SMEs to meet their funding needs. Listed below are four ways to improve bank offerings for SMEs. SMEs struggle to access finance. SMEs across India face significant challenges when it comes…

SMEs (Small and medium-sized enterprises) are the strongest hit by the changing environment especially when the crisis arrives. During COVID-19 the case became more worst and then the need for SME Banking Transformation evolved to support SMEs’ success. Towards the beneficial aspects of SME transformation, banks need to have a thorough knowledge of their challenges. Where to start for SME banking transformation? There should be a deeply focused approach on the areas of concern to find the solution for the problems faced by SMEs and the banking support required. Let’s…

Bill discounting or invoice discounting is the chance to borrow the sanctioned amount of short-term based funds from a lender on the outstanding invoices that the borrower holds. Small or medium-sized businesses require such funds to continue meeting their daily needs. Let’s take an example from our daily schedule of excessive outstanding in some cases. There may be situations when the bigger businesses also need to shut down even after increased debt via loans. But small businesses can’t even exist in such cases as they already have very limited funding…