Options in MSME Financing

MSME has been the talk of the town for a while now. Yet we have not seen a significant change in the path that the Micro, Small and Medium enterprises (MSMEs) are taking. This begs us to question if this lack of change in such a lucrative and promising field is because of a lack of options or a lack of information, specifically in the financing of MSME’s. The growth of these enterprises contributes heavily to the growth of our entire country, both socially and economically. From simple goods to precision products the growth has been slow but steady. The greatest potential that MSME’s have is in job creation, especially in light of the financial crises. FinanSME provides MSME’s with a whole slew of options for small business financing.

Causes Of Financing Gap
Intense scrutiny and analysis have led us to the conclusion that the gaps found in the financing of MSME’s have a few established and easily visible causes. Three major ones include:
• Poor quality projects that are proposed to be given funding.
• Inefficient use of resources that have been made available.
• The disapproval of equity funding by MSME’s.
The sector in and of itself is so huge that the collaboration and consolidation of any solid data is close to impossible. Studies have shown that more than 90% of the financial needs of MSME’s are being met by internal and informal sources. Not to mention the fact that credits are grossly unattainable to them. They depend heavily on MSME loans and loans for small businesses.

Bridging The Gap
A global stock taking exercise by the G-20 SME Finance Sub- group confirmed that providing help to MSME’s to get better and more efficient financial aid has substantially helped in their overall growth. The main hurdle to cross is to let MSME’s have access to credit facilities from banks. Keeping microfinance approaches as a foundation we can reach many informal businesses. The Banks should keep a close eye on seeding out the MSME’s with potential using programmes like the PMJDY. This way they can keep track of all the relevant information with ease. Isn’t it also prudent that being such a vibrant outlet MSME’s are given access to more customized and exclusive packages from banks? Like business loans and business fundings. So why go to all that trouble when the answer to all these questions can be found at FinanSME.

Aids Provided By FinanSME

1. Working capital loan: The unique Bill Finance Facility plugs in the cash flow mismatches and relieves all the worries regarding commitment. These are collateral free and with a lending rate as low as 14.5% per annum. Further benefits include improved margins due to better pricing, better access to credit, transparency and timely and reliable procurement.

2. Machinery loan: Available for light to heavy machinery, these are customized and specifically tailored to meet the needs of each individual SME with complete assistance from our experts. You can choose your source of finance i.e., NBFC or Banks. Only minimal documentation is needed and the status of the loan can be tracked from a secure online platform.

3. Loan against property: You get full support and help in getting loans from banks and NBFC’s against both residential as well as commercial property. Hassle free documentation, flexible repayment plans and fastest approvals are just some of the benefits of FinanSME.

4. Debt Refinancing Loans: feeling choked by your pre-existing loans? FinanSME has the answer that you have been seeking. These aids help reduce your burden and provide you with valuable breathing space. The loan approval and disbursal all span within the period of two weeks. They have the lowest interest rate and the longest repayment period.

If you are looking to get financial aid for you SME FinanSME brings to you the best options you can ever find all on a single platform.

About the Author
Finansme | 34 Articles

We believe there is a need for easing the operating environment for the Micro, Small And Medium Enterprises sector. Access to finance, redefining investment limits, could transform MSMEs into a hotbed of entrepreneurial activity.