Innovative supply chain financing solutions using digital tools and cashflow-based lending can strengthen the MSME (micro, small and medium enterprises) sector by allowing MSME vendors and distributors to efficiently manage their receivables and payable cycles by integrating with corporates’ ERP and enabling financing from financial markets.
Revealing this, an Economic Times article says it becomes all the more important when several MSMEs have been lately affected by the Covid-19 lockdowns and related issues. Banking surrogates-based products can be used to disburse loans to micro-enterprises, while sector-based lending can provide an in-depth view and comprehensive understanding to new-age lenders, utilizing sector-specific statistical scorecards.
