Category: Finance

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…

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 new clients to get engaged with. As per the survey, there can be two major models that can support digital platforms that have shifted into embedded banking for SMEs. Pass…

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 points to consider. Digital Solutions One of the main challenges that traditional banks face when serving SMEs is aging digital solutions. Until recently, banks tended to focus on enterprise and…

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 flow and investment needs. Therefore, bank lending becomes the most common source of external finance for many SMEs. The government has taken a variety of measures to support SME access…

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 risk, along with other things. A late-paying customer can cause turmoil for SMEs with little outside support. Maintaining a robust credit system is key to handling strict credit management and…