‘Unlocking Credit for India’s Job Creators’ a report published by Global Alliance for Mass Entrepreneurship (GAME) states, India’s credit and finance market fails to match the demand for inexpensive capital, on time delivery and on reasonable terms.
“SolutionsApnaoBusinessBadhao” a campaign adopted by GAME and its eleven alliance partners hopes that by promoting the awareness campaign, more people will join the movement and help the country’s 6 million SMEs acquire the funding they need.
Speaking to TheSMEIndia.com Ashwin Chandrasekhar V.P Finance, GAME stated, during December 2020 GAME had conveyed a Finance meeting of SME ecosystem and came with three priorities. Improving access to formal and low-cost finance, delayed payments and working capital mismatch and Finance convening of SME ecosystem in Dec 2020, three priorities should focus on New to Credit, delayed payments, risk mitigation product (insurance).
GAME’s V.P Finance, Ashwin Chandrasekhar, told TheSMEIndia.com that the company had convened a meeting for the SME ecosystem in December 2020 to understand the SME ecosystem post which they arrived at three goals that includes focused on New to Credit, delayed payments, and risk mitigation products (insurance).
Following the meeting, they held a discussion with 40-50 fintech executives until April 2021, culminating in three video campaigns on delayed payments, Formalization and Registration, and ability of SMES to develop the business through Finance beginning September 2021.
The programme, which is aimed at businesses around the country, covers a wide range of issues and directs entrepreneurs to alternative solutions that can benefit them right now, according to Ashwin. The video campaign has received 35,00,000 views on the website so far, and 275 calls have been received by Entrepreneur Mart.
MSMEs can obtain these solutions by going to the Entrepreneur Mart landing page, which connects them directly with service providers.
The findings of the Survey indicate, most MSMEs are unable to obtain loans without the use of property as collateral because they are unable to convince financiers of the sustainability of their business plans. Similarly, repayment is usually done in equal monthly instalments (EMI), even though many micro-businesses prefer to pay in daily or weekly instalments. Such disparities highlight India’s MSME landscape’s uniqueness and need for more variety or personalization in credit services.
Small and medium firms, which have been hit hardest by the pandemic, have also had difficulty obtaining adequate working capital on favourable terms. This has had a negative impact on the operating efficiency, and even the survival, of a number of businesses, including the most promising and growth-oriented SMEs.
The campaign’s eleven partners include factoring platforms such as Receivables Exchange of India Ltd (RXIL), M1Xchange, Invoicemart; Fintech’s such as CredAble, Vayana Network and Flexiloans, Kinara Capital an NBFC, Deasara, Haqdarshak Empowerment Solutions P. Ltd, Recordent and NEMO Finance.
Ashwin further stated, the goal is work on 10X results and the idea is to reach as much entrepreneur as possible and are ready to partner with organization’s who are ready to work with them on the above three parameters.