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…
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…
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…
One of the first things you should consider when beginning the planning phase of a project is what could go wrong. Although it sounds terrible, pragmatist project managers know that this kind of thinking is preventative. To know how to manage risks when project planning, you need to have a mitigation strategy. But how do you approach figuring out the…
SMEs are companies with financial needs that are too large for microfinance but too small for corporate banking models to properly serve. They are a substantial and economically significant sector in almost every country on the planet. SMEs account for over 50% of national output in high-income and several middle-income nations. The SME banking industry is in upheaval. It has…
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 technology-driven era of modern society has captured the vast area with ease for a diverse set of activities including financial transactions. Embedded finance for SMEs in the same context is the revolution for SMEs from tiring sessions of banks. Embedded finance provides financial services to SMEs at the right period by reducing friction and opening the new possibility for…
The SME banking and finance landscape today is highly digitized. Online banking services and mobile applications have been used by almost half of SMEs, and visits to ATMs and branches have decreased by 38%. This trend does set to continue as more customers prefer card payments and mobile banking. What can SMEs expect from these changes? Here are some key…
India has about 60 million+ Micro Small and Medium Enterprises, including registered and unregistered ones. SMEs have contributed about 40% of total manufacturing and 34% of total exports to the Indian Economy. They have become crucial; to the country’s economic growth, leading to employment generation and entrepreneurial development. SMEs are heavily reliant on debts to fulfil their start-up needs, cash…
Making decisions is a significant part of managing an SME. Customer payment is one decision-making scenario that frequently results in problems. When it comes to consumer payment, you must always choose carefully because it can make or break your firm. In addition to being necessary for business, giving credit to customers is also ethical. However, this is vulnerable to credit…