In 2020, the MSME sector employed over 110 million individuals in India single-handedly. In addition to providing employment, the sector also contributed 48% to exports and 30% to GDP, as per a report on Livemint. Hence, you can already see why the government leaves no stones unturned to boost the sector’s growth and strengthen its…
Category: business
Types Of Business Loans
In Mark Twain’s words, “The lack of money is the root cause of all evil”, especially when we know how a liquidity crisis can deter businesses from achieving their goals. But as an entrepreneur, you need not worry about NOT meeting your business objectives, especially when you have access to various types of business loans…
How To Promote A Business Online Without Spending A Penny?
“Stopping advertising to save money is like stopping your watch to save time.” – Henry Ford But, then again, thrifty entrepreneurs would love the idea to save on their marketing expenses without compromising on the accompanying benefits. To make such a dream possible, entrepreneurs can consider a few cost-effective branding strategies that go a long…
5 Steps To Apply For MSME Loan
MSME sector is one of the key drivers in the Indian economy that accelerates its growth. In 2020, it contributed about 45% of the country’s total industrial output and 40% to its exports. However, despite their significance in the current economic system, micro, small and medium enterprises still face a continual working capital crunch. So,…
Union Budget 2021: Extension On MSME Schemes
In light of the COVID-19 pandemic, the Finance Ministry had launched the Emergency Credit Line Guarantee Scheme (ECLGS) as a part of the Atma Nirbhar package on 12 November 2020 to fillip growth in India’s MSME sector. Under this scheme, the government proposed Rs. 20,000 crore debt provision and equity infusion worth Rs. 50,000 crore.…
Bill Discounting And Bill Negotiation Are Not The Same
Even though bill discounting and bill negotiation serve more or less similar purposes, they are distinct from one another in several ways. So, if you use them interchangeably – you may want to STOP right now! To understand what we are hinting at, look at the differences between them from an exporter’s perspective. Check out…
How Are MSMEs Leveraging Bill Discounting Platforms Today?
It is a known fact that the MSME sector plays a key role in India’s economic landscape. Over the years, it has emerged as an engine of growth, contributing significantly to the country’s employment, GDP, and exports. On the downside, however, MSMEs navigate through several uncertainties in the course of their businesses, and a perennial…
Factoring And Discounting Of Bills For Smooth Liquidity
A large section of Indian companies struggle to access funds from formal credit facilities. This often makes sustenance cumbersome for most small and medium-sized firms. Thus, alternative funding options like factoring and bill discounting are gaining currency among businesses looking to resolve cash flow issues. These options are steadily emerging as the industry’s answer to…
Invoice Discounting And Its Timely Reassessment
Do you know what sets invoice discounting apart from traditional funding options? Its flexibility. Ideally, it is a funding option that does not add to your existing debt or create new ones. It is merely an asset-based financing option; wherein, businesses use their unpaid invoices to raise capital. Over the years, invoice discounting has been…
What Are The Primary Types Of MSME Loans?
Did you know that only 16% of the MSMEs in India have access to formal funding? In other words, over 80% of this sector are either underfinanced or are forced to access funds from informal sources, according to an IFC-Intellecap report. This glaring gap in access to credit not only leads to a wide disparity…