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.…
Category: Working Capital
How Can Invoice Financing Increase Your Business Cash Flow?
As a business owner, you should always remember – “Revenue is vanity, profit is sanity, but cash is king”. Cash is indispensable because most of the operational activities depend on it. To be precise, the growth and liquidity of a company depends on how readily cash is available in a business. However, often due to…
How Supply Chain Finance Funds Future Success?
Only firms that are innovative and flexible in terms of catering to their consumers’ ever-changing needs can survive a competitive market. However, as a business owner, you may often find it challenging to keep up with the evolving consumer demands due to several reasons, including financial bottlenecks along the supply chain. One may argue that…
The Importance Of A Responsible Working Capital Management
Fundamentally, working capital is the difference between a firm’s current assets and current liabilities. A company with sufficient working capital possesses a strong financial standing. Regardless, to ensure the same, businesses are required to adopt effective working capital management strategies and put them into practice. Ideally, a business should be considerate about the internal as…
Working Capital Loans: Important Aspects You Must Know
The primary goal of running a business is making profits, but the underlying motive from the get-go is to never run into cash flow scarcity. But, as your company evolves and grows, shortages in working capital can become a recurring problem. And it’s in these stages of scaling that companies, especially small and medium ones,…
How Can SMEs Efficiently Deal With Their Working Capital?
SMEs are perhaps the most crucial drivers of economic growth in India. According to the latest figures, there are more than 42.5 million SME units, accounting for the production of 6000+ items. However, the numbers also speak of the stiff competition that prevails in this sector. In this context, working capital management is one factor that…
Working Capital Loans & Why It Is The Best Funding Option?
Working capital is the locus around which every business operation revolves. It is not only imperative in the short-term but also a major constructive force behind a company’s growth and success. Hence, ensuring the availability of sufficient funds at all times in the form of working capital is of utmost importance. But, that’s easier said…
5 Ways To Utilise A Business Equipment Loan
Latest technology and high-quality equipment is a necessity to ensure the smooth functioning of any business venture. Irrespective of the industry, businesses must make it a point to upgrade the technology they use and replace obsolete machinery with new ones to boost quality and production. However, most of the time, due to lack of capital…
How To Pay Off A Small Business Loan?
A steady inflow of capital is what keeps a business active and propagates growth. However, business owners do not always have sufficient capital to meet their credit demands, especially when the profits are marginal. Usually, in such situations, SME owners prefer availing small business loans to meet their essential operation-oriented requirements. Though such business loans…
How To Use Working Capital Loans To Strengthen Your Business?
Working capital or operating capital is an integral component of any business. It helps business owners to keep their operations afloat by maintaining healthy cash flow. However, sometimes businesses underperform or are subject to losses, which leads to depletion of working capital. To combat the ill-effect of such a situation, business owners often avail a…