31/01/2022
MSMEs New Growth Path:
MSME’s faces challenges in accessing and assessing data for improving their businesses.
In the online economy, development of digitization offered a promising potential to unlock the bottlenecks faced by MSMEs.
Cash flow-based lending models envisage a shift in bank’s loan evaluation based on historical cash flows and repayments predicated on future cash flows.
Innovative supply chain financing solutions are allowing MSME vendors and distributors to manage their receivable and payable cycle efficiently by integrating with corporates’ ERP and enabling financing from financial markets.
Financial institutions in their loan decision-making to MSMEs, are using digital tools and cash flow-based lending will bolster the MSME sector and ensure stated policy objectives are fully realized.
