Simplifying credit & cashflow management. Fuelling growth.

Simplifying credit & cashflow management. Fuelling growth.

Simplifying credit & cashflow management. Fuelling growth.

Simplifying credit & cashflow management. Fuelling growth.

Simplifying credit & cashflow management. Fuelling growth.

Coming soon

Simplifying credit & cashflow management. Fuelling growth.

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Coming soon

Coming soon

Coming soon

Coming soon

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Company

Solutions

Our Technology

CredAble is the tradename for Equentia SCF Technologies Private Limited and its wholly owned subsidiary, Equentia Financial Service Private Limited, a non-deposit taking Non-Banking Financial Company (NBFC) licensed by the Reserve Bank of India (RBI) bearing registration No. 13.02344.

© 2021 CredAble

5000 Cr+

INR funded
 

78%

Participation over the total
supplier / dealer base

20%

Customer through
referral

Company

Solutions

Our Technology

CredAble is the tradename for Equentia SCF Technologies Private Limited and its wholly owned subsidiary, Equentia Financial Service Private Limited, a non-deposit taking Non-Banking Financial Company (NBFC) licensed by the Reserve Bank of India (RBI) bearing registration No. 13.02344.

© 2021 CredAble

The fintech company is currently disbursing close to Rs 1,500 crore a month

CredAble is into supply-chain finance by providing liquidity programmes. It seeks to exponentially increase working capital flows by intermediating between corporates, vendors and banks. The fintech company is currently disbursing close to Rs 1,500 crore a month.

It hopes to top Rs 18,000 crore this calendar year, and hit Rs 20,000-25,000 crore in FY22. NIRAV CHOKSI, co-founder and chief executive officer, spoke to Raghu Mohan. Edited excerpts: How has the working capital world been during the pandemic? It was easily available to large corporates, the mid-market segment, and to ...

This news is published as it is from the publisher’s website. Please subscribe to www.dispatchist.com to read the complete article.

The fintech company is currently disbursing close to Rs 1,500 crore a month

CredAble is into supply-chain finance by providing liquidity programmes. It seeks to exponentially increase working capital flows by intermediating between corporates, vendors and banks. The fintech company is currently disbursing close to Rs 1,500 crore a month.

It hopes to top Rs 18,000 crore this calendar year, and hit Rs 20,000-25,000 crore in FY22. NIRAV CHOKSI, co-founder and chief executive officer, spoke to Raghu Mohan. Edited excerpts: How has the working capital world been during the pandemic? It was easily available to large corporates, the mid-market segment, and to ...

This news is published as it is from the publisher’s website. Please subscribe to www.business-standard.com to read the complete article.

COVID-19 changed various dynamics of the industry. From the topsy-turvy journey of Bollywood through the pandemic to the rise of OTT, we have seen it all...

It is no surprise that the pandemic has turned our economy upside down while keeping us indoors with a limited source of entertainment. COVID-19 has halted shootings, postponed releases and not spared the Indian film industry. Although, OTT came to the rescue.

In the pre-pandemic era, the film industry has been a huge part of the Indian economy. The past decade (2010-2019) has been nothing but glorious. 2019 witnessed a big leap in box office earnings with a 25.53% increase. But, the current circumstances have left us with many questions about the present and future of the massive Indian film industry.

COVID-19 changed various dynamics of the industry. From the topsy-turvy journey of Bollywood through the pandemic to the rise of OTT, we have seen it all.

COVID-19: Derailed Films; a Catalyst for the Rise of OTT

The Indian Film Industry came to a standstill with filming delayed and cinemas shut in March 2020. The first blow came when big-ticket films like Sooryavanshi and 83 got postponed.

According to the EY-FICCI report 2021, the filmed entertainment segment dropped by 62% and theatrical revenues by 80% in 2020.

The restrictions reshaped film releases, distribution channels, revenue, etc. While the film industry was struggling, OTT platforms witnessed a never-seen-before boom. They jumped in at the right time and gained the digital rights of movies that were ready to hit the theatres, and bridged the gap left due to the lack of theatrical releases.

Consequently, OTT gained 29 million paid subscribers in 2020. We noticed the shift with digital rights soaring to Rs. 35.4 billion, as per EY-FICCI 2021. OTT is gaining big with people embracing the internet.

What Led to Growth of OTT?

Internet penetration grew massively when people were confined to their homes. OTT rode on this digital wave, making watching movies easier with various pricing models and targeted ads.

- Pricing Model:
From subscription-based models, pay-per-view to advertising-based video on demand, OTT offers various innovative pricing models. Some platforms like Disney+Hotstar and Zee5 are also offering hybrid models to customers.

Many SVOD platforms are trying out pack durations and sachet pricing models to make streaming affordable for customers.

- Digital Advertising:
India is home to the second-largest digital population. Its online video market has around 300 million user base.

The platforms are keeping a major chunk aside for digital advertising. The players are investing heavily in acquiring new content and ramping up their content library for the audience.

Disney+Hotstar is leading the show with the highest-paid subscribers. The much-loved IPL marked its entry, and the paid subscribers reached 26 million.

The Road Ahead

We believe that change is the only constant and media companies are proving it with their disruptions and innovations. The wave has already begun and is only going to move upwards from here. OTT players are leaving no stone unturned to make it big. Whilst upgrading technologies, the creators are thoroughly investing in content such that in the past 2 years, audience has spoken more about Manoj Bajpayee than Ranveer Singh. This is the power OTT portrays and with VR companies taking big strides, who knows what’s in store after 10 years.

India is emerging as the world’s fastest-growing OTT market.

It is growing at 28.6% CAGR and might become a $2.9 billion market by 2024, as per PWC. In fact, OTT is covering every nook and cranny to reach the right audience.

- Regional content

OTT is connecting with the audience via regional content as around 90% of people prefer to consume content in regional languages.

Our homegrown platforms such as Voot, SonyLiv, Zee5 are investing heavily in this kind of content, with Zee5 already streaming content in 12 regional languages.

- Original content

Besides streaming movies, OTT platforms are creating binge-worthy original content. Around 220 original titles were released in 2020; the number is likely to go up to 500 in 2021. The EY-FICCI report 2021 has estimated an investment of INR 19.2 billion in 2021. This number might increase to INR300 billion from 2021-2025.

- The World of Coexistence!

Is the proliferation of OTT a threat to theatres?

India is home to 40+ OTT platforms, creating content and acquiring film titles. While the OTT platforms are growing exponentially, the only concern is how they will monetize movies worth 100 crores?

While Theatres are a major source of revenue for a film, OTT platforms have certainly made watching movies convenient, the future is of coexistence. This may also result in a decline in the eight-week theatre window to maximize profits.

The pandemic might lead to cutting down aggressive promotions, which once moved up to INR 25-30 crore. Now, the marketing budgets are likely to decline by 20%-30%.

Talking about PVR, the company didn't generate any cash flow in the lockdown. The company had to uphold its cash flow commitments and deferred some of the developments for the time being.

-Choksi is co-founder & CEO, and Kewalramani, co-founder & MD, CredAble. Views expressed are personal.

This news is published as it is from the publisher’s website. Please visit www.BRANDEQUITY.com to read the article.

COVID-19 changed various dynamics of the industry. From the topsy-turvy journey of Bollywood through the pandemic to the rise of OTT, we have seen it all...

It is no surprise that the pandemic has turned our economy upside down while keeping us indoors with a limited source of entertainment. COVID-19 has halted shootings, postponed releases and not spared the Indian film industry. Although, OTT came to the rescue.

In the pre-pandemic era, the film industry has been a huge part of the Indian economy. The past decade (2010-2019) has been nothing but glorious. 2019 witnessed a big leap in box office earnings with a 25.53% increase. But, the current circumstances have left us with many questions about the present and future of the massive Indian film industry.

COVID-19 changed various dynamics of the industry. From the topsy-turvy journey of Bollywood through the pandemic to the rise of OTT, we have seen it all.

COVID-19: Derailed Films; a Catalyst for the Rise of OTT

The Indian Film Industry came to a standstill with filming delayed and cinemas shut in March 2020. The first blow came when big-ticket films like Sooryavanshi and 83 got postponed.

According to the EY-FICCI report 2021, the filmed entertainment segment dropped by 62% and theatrical revenues by 80% in 2020.

The restrictions reshaped film releases, distribution channels, revenue, etc. While the film industry was struggling, OTT platforms witnessed a never-seen-before boom. They jumped in at the right time and gained the digital rights of movies that were ready to hit the theatres, and bridged the gap left due to the lack of theatrical releases.

Consequently, OTT gained 29 million paid subscribers in 2020. We noticed the shift with digital rights soaring to Rs. 35.4 billion, as per EY-FICCI 2021. OTT is gaining big with people embracing the internet.

What Led to Growth of OTT?

Internet penetration grew massively when people were confined to their homes. OTT rode on this digital wave, making watching movies easier with various pricing models and targeted ads.

- Pricing Model:
From subscription-based models, pay-per-view to advertising-based video on demand, OTT offers various innovative pricing models. Some platforms like Disney+Hotstar and Zee5 are also offering hybrid models to customers.

Many SVOD platforms are trying out pack durations and sachet pricing models to make streaming affordable for customers.

- Digital Advertising:
India is home to the second-largest digital population. Its online video market has around 300 million user base.

The platforms are keeping a major chunk aside for digital advertising. The players are investing heavily in acquiring new content and ramping up their content library for the audience.

Disney+Hotstar is leading the show with the highest-paid subscribers. The much-loved IPL marked its entry, and the paid subscribers reached 26 million.

The Road Ahead

We believe that change is the only constant and media companies are proving it with their disruptions and innovations. The wave has already begun and is only going to move upwards from here. OTT players are leaving no stone unturned to make it big. Whilst upgrading technologies, the creators are thoroughly investing in content such that in the past 2 years, audience has spoken more about Manoj Bajpayee than Ranveer Singh. This is the power OTT portrays and with VR companies taking big strides, who knows what’s in store after 10 years.

India is emerging as the world’s fastest-growing OTT market.

It is growing at 28.6% CAGR and might become a $2.9 billion market by 2024, as per PWC. In fact, OTT is covering every nook and cranny to reach the right audience.

- Regional content

OTT is connecting with the audience via regional content as around 90% of people prefer to consume content in regional languages.

Our homegrown platforms such as Voot, SonyLiv, Zee5 are investing heavily in this kind of content, with Zee5 already streaming content in 12 regional languages.

- Original content

Besides streaming movies, OTT platforms are creating binge-worthy original content. Around 220 original titles were released in 2020; the number is likely to go up to 500 in 2021. The EY-FICCI report 2021 has estimated an investment of INR 19.2 billion in 2021. This number might increase to INR300 billion from 2021-2025.

- The World of Coexistence!

Is the proliferation of OTT a threat to theatres?

India is home to 40+ OTT platforms, creating content and acquiring film titles. While the OTT platforms are growing exponentially, the only concern is how they will monetize movies worth 100 crores?

While Theatres are a major source of revenue for a film, OTT platforms have certainly made watching movies convenient, the future is of coexistence. This may also result in a decline in the eight-week theatre window to maximize profits.

The pandemic might lead to cutting down aggressive promotions, which once moved up to INR 25-30 crore. Now, the marketing budgets are likely to decline by 20%-30%.

Talking about PVR, the company didn't generate any cash flow in the lockdown. The company had to uphold its cash flow commitments and deferred some of the developments for the time being.

-Choksi is co-founder & CEO, and Kewalramani, co-founder & MD, CredAble. Views expressed are personal.

This news is published as it is from the publisher’s website. Please visit www.BRANDEQUITY.com to read the article.

COVID-19 changed various dynamics of the industry. From the topsy-turvy journey of Bollywood through the pandemic to the rise of OTT, we have seen it all...

It is no surprise that the pandemic has turned our economy upside down while keeping us indoors with a limited source of entertainment. COVID-19 has halted shootings, postponed releases and not spared the Indian film industry. Although, OTT came to the rescue.

In the pre-pandemic era, the film industry has been a huge part of the Indian economy. The past decade (2010-2019) has been nothing but glorious. 2019 witnessed a big leap in box office earnings with a 25.53% increase. But, the current circumstances have left us with many questions about the present and future of the massive Indian film industry.

COVID-19 changed various dynamics of the industry. From the topsy-turvy journey of Bollywood through the pandemic to the rise of OTT, we have seen it all.

COVID-19: Derailed Films; a Catalyst for the Rise of OTT

The Indian Film Industry came to a standstill with filming delayed and cinemas shut in March 2020. The first blow came when big-ticket films like Sooryavanshi and 83 got postponed.

According to the EY-FICCI report 2021, the filmed entertainment segment dropped by 62% and theatrical revenues by 80% in 2020.

The restrictions reshaped film releases, distribution channels, revenue, etc. While the film industry was struggling, OTT platforms witnessed a never-seen-before boom. They jumped in at the right time and gained the digital rights of movies that were ready to hit the theatres, and bridged the gap left due to the lack of theatrical releases.

Consequently, OTT gained 29 million paid subscribers in 2020. We noticed the shift with digital rights soaring to Rs. 35.4 billion, as per EY-FICCI 2021. OTT is gaining big with people embracing the internet.

What Led to Growth of OTT?

Internet penetration grew massively when people were confined to their homes. OTT rode on this digital wave, making watching movies easier with various pricing models and targeted ads.

- Pricing Model:
From subscription-based models, pay-per-view to advertising-based video on demand, OTT offers various innovative pricing models. Some platforms like Disney+Hotstar and Zee5 are also offering hybrid models to customers.

Many SVOD platforms are trying out pack durations and sachet pricing models to make streaming affordable for customers.

- Digital Advertising:
India is home to the second-largest digital population. Its online video market has around 300 million user base.

The platforms are keeping a major chunk aside for digital advertising. The players are investing heavily in acquiring new content and ramping up their content library for the audience.

Disney+Hotstar is leading the show with the highest-paid subscribers. The much-loved IPL marked its entry, and the paid subscribers reached 26 million.

The Road Ahead

We believe that change is the only constant and media companies are proving it with their disruptions and innovations. The wave has already begun and is only going to move upwards from here. OTT players are leaving no stone unturned to make it big. Whilst upgrading technologies, the creators are thoroughly investing in content such that in the past 2 years, audience has spoken more about Manoj Bajpayee than Ranveer Singh. This is the power OTT portrays and with VR companies taking big strides, who knows what’s in store after 10 years.

India is emerging as the world’s fastest-growing OTT market.

It is growing at 28.6% CAGR and might become a $2.9 billion market by 2024, as per PWC. In fact, OTT is covering every nook and cranny to reach the right audience.

- Regional content

OTT is connecting with the audience via regional content as around 90% of people prefer to consume content in regional languages.

Our homegrown platforms such as Voot, SonyLiv, Zee5 are investing heavily in this kind of content, with Zee5 already streaming content in 12 regional languages.

- Original content

Besides streaming movies, OTT platforms are creating binge-worthy original content. Around 220 original titles were released in 2020; the number is likely to go up to 500 in 2021. The EY-FICCI report 2021 has estimated an investment of INR 19.2 billion in 2021. This number might increase to INR300 billion from 2021-2025.

- The World of Coexistence!

Is the proliferation of OTT a threat to theatres?

India is home to 40+ OTT platforms, creating content and acquiring film titles. While the OTT platforms are growing exponentially, the only concern is how they will monetize movies worth 100 crores?

While Theatres are a major source of revenue for a film, OTT platforms have certainly made watching movies convenient, the future is of coexistence. This may also result in a decline in the eight-week theatre window to maximize profits.

The pandemic might lead to cutting down aggressive promotions, which once moved up to INR 25-30 crore. Now, the marketing budgets are likely to decline by 20%-30%.

Talking about PVR, the company didn't generate any cash flow in the lockdown. The company had to uphold its cash flow commitments and deferred some of the developments for the time being.

-Choksi is co-founder & CEO, and Kewalramani, co-founder & MD, CredAble. Views expressed are personal.

This news is published as it is from the publisher’s website. Please visit www.BRANDEQUITY.com to read the article.

The need for adequate capital for individuals and businesses is paramount. Capital can be accessed in the form of a loan from a bank or a non-banking financial company (NBFC). Loans are primarily of two kinds — secured and unsecured.

A secured loan is a type of loan which is provided in return for an asset. The financial institution holds the borrower’s assets as security against the non-repayment of the loan. On the other hand, banks also offer loans without any collateral. Unsecured, or collateral-free loans, are sanctioned after taking into account various factors like the creditworthiness of the borrower. From a lender’s perspective, unsecured loans carry more risks than a secured loan.

The two main differentiating factors between unsecured and secured loans are:

• Higher interest rate

While the interest rate varies from lender to lender, unsecured loans have a higher interest rate than secured loans. Unsecured loans are relatively riskier for the lender and higher interest rates help in offsetting the risk at a faster pace.

• Higher credit scores

Since lenders do not ask for collateral while offering an unsecured loan, they try to accumulate as much data as possible on the creditworthiness of the borrower. A host of data points are analysed before an unsecured loan is sanctioned and hence, borrowers require a strong credit profile to avail a loan. Some lenders offer an unsecured loan even to individuals with low credit scores, but the interest rate is significantly higher.

Types of Unsecured Loans Based on Tenure and Repayment

A young population and economic mobility have led to a surge in demand for unsecured loans. The variety of loans on offer is one of the primary drivers of demand for unsecured loans. For instance, an unsecured loan can be availed for activities ranging from education and marriage to agriculture and business.

They are categorized into three broad types:

Revolving loans

It is a type of financial instrument that allows borrowers to withdraw an amount, repay it and withdraw again. A revolving loan assigns a credit limit to the borrower and they are free to borrow as many times as required without exceeding the limit. It is a flexible loan that can be utilised and rapid multiple times during the tenure.

For instance, individual ABC avails a revolving loan of INR 1 lakh for two years. In the two-year tenure, the amount outstanding with ABC cannot exceed INR 1 lakh. ABC can withdraw the entire INR 1 lakh in a day and repay INR 50,000 in a month. She will be eligible to receive INR 50,000 again after the repayment.

At the end of the tenure, the borrower has to repay the outstanding amount along with the interest. This type of unsecured loan is ideal to take care of working capital needs or a temporary cash crunch. The borrower does not have to stress over fixed repayment schedules. Generally, revolving loans have variable interest rates.

Term loans

Revolving loans provide the flexibility of payment to borrowers. Term loans are the exact opposite. In contrast to revolving loans, term loans have a fixed interest rate and tenure. Individuals in need of funds for fixed assets or to make long-term investments should opt for term loans.

Consolidation loan

The easy availability of finance can lead to an accumulation of loans. Many people opt for a consolidation loan to repay accumulated loans. As the name suggests, a consolidation loan helps in the consolidation of existing loans.

Types of Unsecured Loans Based on Utilization

The categorisation of unsecured loans can be finetuned on the basis of the end-use.

Wedding loan

A wedding is an important milestone in most people’s lives. Getting a child married can take up the bulk of one’s savings. A wedding loan is a flexible financial instrument that can be used to take care of wedding-related expenses.

Vacation loan

A variety of loans are packaged as vacation loans. A term loan can be availed to finance the entire trip. For expenses like shopping and eating, a revolving loan will be more suitable. A credit card can also be used for vacation expenses.

Home renovation loan

One can utilise a home renovation loan to alter the appearance of their house. While a home renovation loan allows a number of acquisitions and modifications, one is not allowed to buy furniture and appliances.

Top-up loan

Sometimes borrowers require an additional amount over an existing loan. The additional amount is called a top-up loan. In the case of a top-up loan, borrowers club the pre-existing loan and the additional loan into one and the borrower has to pay a single monthly instalment in the place of two separate payments.

Bridge loan

Bridge loans have been designed to take care of short-duration fund requirements. The tenure of bridge loans is generally less than one year.

Consumer durable loan

In the digital world, gadgets and appliances have become a necessity. A consumer durable loan helps in the purchase of gadgets or appliances. While many lenders provide a term loan for consumer durables, some also offer revolving credit, with the buyer having the freedom of overutilization and repayment of the funds.

Business loan

Many lenders offer loans to finance businesses in helping them invest in infrastructure or take care of working capital needs. A business loan is akin to a revolving loan, only the outstanding amount attracts interest. There are multiple mediums of providing financing to businesses, receivables financing is one of the most common.

Receivables financing

Some businesses run completely on cash sales while others have to contend with long credit cycles. If a business suddenly has to offer credit to a large number of customers simultaneously, how is it supposed to run smoothly? It will need capital to operate.

One option is to opt for a business loan, but the processing of business loans takes time and the applicant may also have to provide collateral. Rather than obtaining a business loan, many businesses opt for trade receivables financing. 

The total amount outstanding that a company has billed for products and services but have not received the payment yet is known as account receivables. When a lender utilises the account receivables of a company to provide unsecured financing, it is known as trade receivables financing.

There are two ways to get trade receivables financing:

• Factoring: This is a globally accepted way of trade receivables financing. Businesses sell the complete receivables account to factoring companies to raise capital. The factoring company pays the business upfront and gets the ownership of the trade receivables account. The risk of default shifts to the financier along with the ownership of the trade receivables account.
• Invoice discounting: In contrast to factoring, the ownership of the trade receivables account rests with the business in case of invoice discounting. The financier uses the account receivables as collateral to provide the required funds to the business. The amount disbursed is generally lower than the outstanding amount of the account receivables.

This news is published as it is from the publisher’s website. Please visit www.forbes.com to read the article.

EARLY PAYMENTS Platform FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their vendors, using our trade finance expertise,world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendorsfor invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s Dynamic Discounting and Receivables Exchange Platform (DDRX)

A FinTech platform that makes it easy for large enterprises to facilitate on-demand working capital for their vendors

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment Platform is customized and integrated with the ERP system of the enterprise client

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for vendors to be able to request early payment of their invoices

STEP 3

Early Payment Request

Vendors+ activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

DDRX has capital providers integrated into the platform. When a payment request is accepted, the platform facilitates the early payment into the vendor's account in partnership with Financial institutions

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital platform anchored around Enterprise Clients

Vendor Confidence

Stronger trade relationships with vendors

Flexibility

Flexibility to maintain or extend days payable outstanding while vendors are paid early

Best Rate Algorithm

CredAble’s marketplace dynamics drive ‘best rate’ discovery on vendor offered discounts and cost of third party capital 

Built for Scale

Platform is built to engage with suppliersat scale

Digital User Experience  

Vendor onboarding, Documentation, and reconciliation with Anchor ERPs and capital providers is completely digitized

CredAble Advantages

Funding for vendors is always just a few clicks away

Debt Free Working Capital

All vendors are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Vendors access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble’s relationship managers will assist vendors through the process

Complete Transparency

The platform provides complete data transparency to vendors with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

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SPACE

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FULLY RESPONSIVE

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technology

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EARLY PAYMENTS Platform FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their vendors, using our trade finance expertise,world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendorsfor invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s Dynamic Discounting and Receivables Exchange Platform (DDRX)

A FinTech platform that makes it easy for large enterprises to facilitate on-demand working capital for their vendors

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment Platform is customized and integrated with the ERP system of the enterprise client.

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for vendors to be able to request early payment of their invoices

STEP 3

Early Payment Request

Vendors+ activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

DDRX has capital providers integrated into the platform. When a payment request is accepted, the platform facilitates the early payment into the vendor's account in partnership with Financial institutions

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital platform anchored around Enterprise Clients

Vendor Confidence

Stronger trade relationships with vendors

Flexibility

Flexibility to maintain or extend days payable outstanding while vendors are paid early

Best Rate Algorithm

CredAble’s marketplace dynamics drive ‘best rate’ discovery on vendor offered discounts and cost of third party capital 

Built for Scale

Platform is built to engage with suppliersat scale

Digital User Experience  

Vendor onboarding, Documentation, and reconciliation with Anchor ERPs and capital providers is completely digitized

CredAble Advantages

Funding for vendors is always just a few clicks away

Debt Free Working Capital

All vendors are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Vendors access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble’s relationship managers will assist vendors through the process

Complete Transparency

The platform provides complete data transparency to vendors with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

EARLY PAYMENTS Platform FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their vendors, using our trade finance expertise,world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendorsfor invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s Dynamic Discounting and Receivables Exchange Platform (DDRX)

A FinTech platform that makes it easy for large enterprises to facilitate on-demand working capital for their vendors

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment Platform is customized and integrated with the ERP system of the enterprise client.

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for vendors to be able to request early payment of their invoices

STEP 3

Early Payment Request

Vendors+ activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

DDRX has capital providers integrated into the platform. When a payment request is accepted, the platform facilitates the early payment into the vendors account in partnership with Financial institutions

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital platform anchored around Enterprise Clients

Vendor Confidence

Stronger trade relationships with vendors

Flexibility

Flexibility to maintain or extend days payable outstanding while vendors are paid early

Best Rate Algorithm

CredAble’s marketplace dynamics drive ‘best rate’ discovery on vendor offered discounts and cost of third party capital 

Built for Scale

Platform is built to engage with suppliersat scale

Digital User Experience  

Vendor onboarding, Documentation, and reconciliation with Anchor ERPs and capital providers is completely digitized

CredAble Advantages

Funding for vendors is always just a few clicks away

Debt Free Working Capital

All vendors are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Vendors access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble’s relationship managers will assist vendors through the process

Complete Transparency

The platform provides complete data transparency to vendors with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

EARLY PAYMENTS Platform FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their vendors, using our trade finance expertise,world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendorsfor invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s Dynamic Discounting and Receivables Exchange Platform (DDRX)

A FinTech platform that makes it easy for large enterprises to facilitate on-demand working capital for their vendors

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment platform is customized and integrated with the ERP system of the enterprise client.

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for vendors to be able to request early payment of their invoices

STEP 3

Early Payment Request

Vendors+ activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

DDRX has capital providers integrated into the platform. When a payment request is accepted, the platform facilitates the early payment into the vendors account in partnership with Financial institutions

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital platform anchored around Enterprise Clients

Vendor Confidence

Stronger trade relationships with vendors

Flexibility

Flexibility to maintain or extend days payable outstanding while vendors are paid early

Best Rate Algorithm

CredAble’s marketplace dynamics drive ‘best rate’ discovery on vendor offered discounts and cost of third party capital 

Built for Scale

Platform is built to engage with suppliersat scale

Digital User Experience  

Vendor onboarding, Documentation, and reconciliation with Anchor ERPs and capital providers is completely digitized

CredAble Advantages

Funding for vendors is always just a few clicks away

Debt Free Working Capital

All vendors are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Vendors access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble’s relationship managers will assist vendors through the process

Complete Transparency

The platform provides complete data transparency to vendors with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

EARLY PAYMENTS Platform FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their suppliers, using our trade finance expertise,world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendorsfor invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s Dynamic Discounting and Receivables Exchange Platform (DDRX)

A FinTech platform that makes it easy for large enterprises to facilitate on-demand working capital for their vendors

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment platform is customized and integrated with the ERP system of the enterprise client.

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for vendors to be able to request early payment of their invoices

STEP 3

Early Payment Request

Vendors+ activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

DDRX has capital providers integrated into the platform. When a payment request is accepted, the platform facilitates the early payment into the vendors account in partnership with Financial institutions

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital platform anchored around Enterprise Clients

Vendor Confidence

Stronger trade relationships with vendors

Flexibility

Flexibility to maintain or extend days payable outstanding while vendors are paid early

Best Rate Algorithm

CredAble’s marketplace dynamics drive ‘best rate’ discovery on vendor offered discounts and cost of third party capital 

Built for Scale

Platform is built to engage with suppliersat scale

Digital User Experience  

Vendor onboarding, Documentation, and reconciliation with Anchor ERPs and capital providers is completely digitized

CredAble Advantages

Funding for vendors is always just a few clicks away

Debt Free Working Capital

All vendors are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Vendors access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble’s relationship managers will assist vendors through the process

Complete Transparency

The platform provides complete data transparency to vendors with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

EARLY PAYMENTS Platform FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their suppliers, using our trade finance expertise,world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendorsfor invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s Dynamic Discounting and Receivables Exchange platform (DDRX)

A FinTech platform that makes it easy for large enterprises to facilitate on-demand working capital for their vendors

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment platform is customized and integrated with the ERP system of the enterprise client.

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for vendors to be able to request early payment of their invoices

STEP 3

Early Payment Request

Vendors+ activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

DDRX has capital providers integrated into the platform. When a payment request is accepted, the platform facilitates the early payment into the vendors account in partnership with Financial institutions

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital platform anchored around Enterprise Clients

Vendor Confidence

Stronger trade relationships with vendors

Flexibility

Flexibility to maintain or extend days payable outstanding while vendors are paid early

Best Rate Algorithm

CredAble’s marketplace dynamics drive ‘best rate’ discovery on vendor offered discounts and cost of third party capital 

Built for Scale

Platform is built to engage with suppliersat scale

Digital User Experience  

Vendor onboarding, Documentation, and reconciliation with Anchor ERPs and capital providers is completely digitized

CredAble Advantages

Funding for vendors is always just a few clicks away

Debt Free Working Capital

All vendors are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Vendors access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble’s relationship managers will assist vendors through the process

Complete Transparency

The platform provides complete data transparency to vendors with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and
transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.  
 
 

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.  
 

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices  
 

A technology platform which enables collateral free finance for purchase orders issued by anchors  
 

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working capital financing programs customized to each client.

World-class technology platform to provide scalability, intuitive UX, robust data security and advanced data analytics.

Seasoned in-house relationship team to deploy strategies to drive recurring participation by beneficiaries.

Awards and Recognition

NASSCOM Startup Awards

Emerge 50 Awards is India’s most prestigious & prominent awards in the Software Product Industry, with the mission to find and recognize the most innovative software product companies

SAP Startup Accelerator

Every year SAP selects 16 startups who get guidance from the SAP experts, an opportunity to co-innovate with teams and access to the partner ecosystem. SAP Startup Studio aims to build a platform

Best Supply Chain Finance Solution of 2019

CredAble received the award for the “Best Supply Chain Finance Technology Solution of the Year” at Inflection 2019, a Digital, Supply Chain, Logistics and Procurement Summit

Best Start-up in the Fintech Category 2018

Out of the 100 startups that participated in Maharashtra Startup Week, CredAble won the top position where our team showcased the Early Payment Program for Suppliers to an elite panel

Incubated by Oracle Startup Cloud Accelerator

CredAble was selected in the Oracle Startup Accelerator Program – Mumbai Cohort. Oracle's global startup program enables growth and drives cloud-based innovations for startups

Credable in the Media

CredAble is at the forefront of innovation in supply chain finance

Business insights

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and
transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.  
 
 

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.  
 

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices  
 
 

A technology platform which enables collateral free finance for purchase orders issued by anchors  
 
 

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working capital financing programs customized to each client.

World-class technology platform to provide scalability, intuitive UX, robust data security and advanced data analytics.

Seasoned in-house relationship team to deploy strategies to drive recurring participation by beneficiaries.

Awards and Recognition

NASSCOM Startup Awards

Emerge 50 Awards is India’s most prestigious & prominent awards in the Software Product Industry, with the mission to find and recognize the most innovative software product companies

SAP Startup Accelerator

Every year SAP selects 16 startups who get guidance from the SAP experts, an opportunity to co-innovate with teams and access to the partner ecosystem. SAP Startup Studio aims to build a platform

Best Supply Chain Finance Solution of 2019

CredAble received the award for the “Best Supply Chain Finance Technology Solution of the Year” at Inflection 2019, a Digital, Supply Chain, Logistics and Procurement Summit

Best Start-up in the Fintech Category 2018

Out of the 100 startups that participated in Maharashtra Startup Week, CredAble won the top position where our team showcased the Early Payment Program for Suppliers to an elite panel

Incubated by Oracle Startup Cloud Accelerator

CredAble was selected in the Oracle Startup Accelerator Program – Mumbai Cohort. Oracle's global startup program enables growth and drives cloud-based innovations for startups

Credable in the Media

CredAble is at the forefront of innovation in supply chain finance

Business insights

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and
transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.  
 
 

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.  
 

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices  
 
 

A technology platform which enables collateral free finance for purchase orders issued by anchors  
 
 

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working capital financing programs customized to each client.

World-class technology platform to provide scalability, intuitive UX, robust data security and advanced data analytics.

Seasoned in-house relationship team to deploy strategies to drive recurring participation by beneficiaries.

Awards and Recognition

NASSCOM Startup Awards

Emerge 50 Awards is India’s most prestigious & prominent awards in the Software Product Industry, with the mission to find and recognize the most innovative software product companies

SAP Startup Accelerator

Every year SAP selects 16 startups who get guidance from the SAP experts, an opportunity to co-innovate with teams and access to the partner ecosystem. SAP Startup Studio aims to build a platform

Best Supply Chain Finance Solution of 2019

CredAble received the award for the “Best Supply Chain Finance Technology Solution of the Year” at Inflection 2019, a Digital, Supply Chain, Logistics and Procurement Summit

Best Start-up in the Fintech Category 2018

Out of the 100 startups that participated in Maharashtra Startup Week, CredAble won the top position where our team showcased the Early Payment Program for Suppliers to an elite panel

Incubated by Oracle Startup Cloud Accelerator

CredAble was selected in the Oracle Startup Accelerator Program – Mumbai Cohort. Oracle's global startup program enables growth and drives cloud-based innovations for startups

Credable in the Media

CredAble is at the forefront of innovation in supply chain finance

Business insights

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and
transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.  
 
 

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.  
 

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices  
 
 

A technology platform which enables collateral free finance for purchase orders issued by anchors  
 
 

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working capital financing programs customized to each client.

World-class technology platform to provide scalability, intuitive UX, robust data security and advanced data analytics.

Seasoned in-house relationship team to deploy strategies to drive recurring participation by beneficiaries.

Awards and Recognition

Best Supply Chain Finance Solution of 2019

CredAble received the award for the “Best Supply Chain Finance Technology Solution of the Year” at Inflection 2019, a Digital, Supply Chain, Logistics and Procurement Summit

Incubated by Oracle Startup Cloud Accelerator

CredAble was selected in the Oracle Startup Accelerator Program – Mumbai Cohort. Oracle's global startup program enables growth and drives cloud-based innovations for startups

Best Start-up in the Fintech Category 2018

Out of the 100 startups that participated in Maharashtra Startup Week, CredAble won the top position where our team showcased the Early Payment Program for Suppliers to an elite panel

NASSCOM Startup Awards

Emerge 50 Awards is India’s most prestigious & prominent awards in the Software Product Industry, with the mission to find and recognize the most innovative software product companies

SAP Startup Accelerator

Every year SAP selects 16 startups who get guidance from the SAP experts, an opportunity to co-innovate with teams and access to the partner ecosystem. SAP Startup Studio aims to build a platform

Credable in the Media

CredAble is at the forefront of innovation in supply chain finance

Business insights

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and
transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices

A technology platform which enables collateral free finance for purchase orders issued by anchors

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working capital financing programs customized to each client.

World-class technology platform to provide scalability, intuitive UX, robust data security and advanced data analytics.

Seasoned in-house relationship team to deploy strategies to drive recurring participation by beneficiaries.

Awards and Recognition

Best Supply Chain Finance Solution of 2019

CredAble received the award for the “Best Supply Chain Finance Technology Solution of the Year” at Inflection 2019, a Digital, Supply Chain, Logistics and Procurement Summit

Incubated by Oracle Startup Cloud Accelerator

CredAble was selected in the Oracle Startup Accelerator Program – Mumbai Cohort. Oracle's global startup program enables growth and drives cloud-based innovations for startups

Best Start-up in the Fintech Category 2018

Out of the 100 startups that participated in Maharashtra Startup Week, CredAble won the top position where our team showcased the Early Payment Program for Suppliers to an elite panel

NASSCOM Startup Awards

Emerge 50 Awards is India’s most prestigious & prominent awards in the Software Product Industry, with the mission to find and recognize the most innovative software product companies

SAP Startup Accelerator

Every year SAP selects 16 startups who get guidance from the SAP experts, an opportunity to co-innovate with teams and access to the partner ecosystem. SAP Startup Studio aims to build a platform

Credable in the Media

CredAble is at the forefront of innovation in supply chain finance

Business insights

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

EARLY PAYMENTS PROGRAM FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their suppliers, using our trade finance expertise, world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendors for invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s Dynamic Discounting and Receivables Exchange platform (DDRX)

A FinTech platform that makes it easy for large enterprises to facilitate on-demand working capital for their vendors

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment platform is customized and integrated with the ERP system of the enterprise client.

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for vendors to be able to request early payment of their invoices

STEP 3

Early Payment Request

Vendors+ activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

DDRX has capital providers integrated into the platform. When a payment request is accepted, the platform facilitates the early payment into the vendors account in partnership with Financial institutions

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital platform anchored around Enterprise Clients

Vendor Confidence

Stronger trade relationships with vendors

Flexibility

Flexibility to maintain or extend days payable outstanding while vendors are paid early

Best Rate Algorithm

CredAble’s marketplace dynamics drive ‘best rate’ discovery on vendor offered discounts and cost of third party capital 

Built for Scale

Platform is built to engage with suppliers at scale

Digital User Experience  

Vendor onboarding, Documentation, and reconciliation with Anchor ERPs and capital providers is completely digitized

CredAble Advantages

Funding for vendors is always just a few clicks away

Debt Free Working Capital

All vendors are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Vendors access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble’s relationship managers will assist vendors through the process

Complete Transparency

The platform provides complete data transparency to vendors with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

EARLY PAYMENTS PROGRAM FOR VENDORS

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their suppliers, using our trade finance expertise, world-class technology platform and partnerships with third party capital providers

01

Balancing priorities of maintaining days payable outstanding with strengthening vendor relationships

02

Addressing persistent follow-ups from vendors for invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual vendor

04

Early payments to vendors can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a vendors ability to meet financial commitments

02

Pressure on funding limits a vendors ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, vendors rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s dynamic discounting receivables exchange platform (DDRX)

A technology platform that makes it easy for large enterprises to facilitate on-demand working capital

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment platform is customized and integrated with the ERP system of the enterprise client. The platform acts as a digital marketplace for each supplier of the anchor enterprise

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for suppliers to be able to request early payment of their invoices

STEP 3

Early Payment Request

Suppliers activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

The CredAble platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital marketplace anchored around Enterprise Clients

Supplier Confidence

Stronger trade relationships with suppliers

Flexibility

Flexibility to maintain or extend days payable while suppliers are paid early

Best Rate Algorithm

CredAble's marketplace dynamics drive ‘best rate’ discovery on supplier offered discounts and cost of 3rd party capital 

Built for Scale

Platform is built to engage with suppliers on a large scale

Digital User Experience 

Documentation, record keeping and reconciliation with ERPs is digital

CredAble Advantages

Funding for suppliers is always just a few clicks away

Debt Free Working Capital

All suppliers are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Suppliers access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble's relationship managers will assist suppliers through the process

Complete Transparency

The platform provides complete data transparency to suppliers with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

early payments program for suppliers

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their suppliers, using our trade finance expertise, user friendly technology platform and partnerships with 3rd party capital provider

01

Balancing priorities of maintaining days payable with strengthening supplier relationships

02

Addressing persistent follow-ups from suppliers for invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual supplier

04

Early payments to suppliers can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s dynamic discounting receivables exchange platform (DDRX)

A technology platform that makes it easy for large enterprises to facilitate on-demand working capital

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment platform is customized and integrated with the ERP system of the enterprise client. The platform acts as a digital marketplace for each supplier of the anchor enterprise

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for suppliers to be able to request early payment of their invoices

STEP 3

Early Payment Request

Suppliers activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

The CredAble platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital marketplace anchored around Enterprise Clients

Supplier Confidence

Stronger trade relationships with suppliers

Flexibility

Flexibility to maintain or extend days payable while suppliers are paid early

Best Rate Algorithm

CredAble's marketplace dynamics drive ‘best rate’ discovery on supplier offered discounts and cost of 3rd party capital 

Built for Scale

Platform is built to engage with suppliers on a large scale

Digital User Experience 

Documentation, record keeping and reconciliation with ERPs is digital

CredAble Advantages

Funding for suppliers is always just a few clicks away

Debt Free Working Capital

All suppliers are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Suppliers access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble's relationship managers will assist suppliers through the process

Complete Transparency

The platform provides complete data transparency to suppliers with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

Lorem ipsum dolor sit amet, consectetuer adipiscing.

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus dictum felis eu pede mollis pretium bibendum sodales.

SPACE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

FULLY RESPONSIVE

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

technology

Lorem ipsum dolor sit amet, consectetuer adipiscing elit sed.

[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

As Japan and global athletes gear up to compete in the postponed Tokyo Olympics that is finally going to take place amidst a raging pandemic, the buzz around the impact of the Olympics has only risen to prominence. Olympic Games is a premier sporting game that draws over a resounding 10,000 athletes who represent 204 countries, compete in 300 individual events across 28 different sports, with over a billion audience glued to the broadcasting channels. Competing in the Olympics is celebrated as the global pride that brings global citizens together.

The quadrennial Games have evolved over the years and have raised major concerns among economists on their both short and long-term impact. Overrun budget of the Sochi Winter Games, 2018 to the disastrous debt that left Rio De Janeiro to bare bones from the Summer Olympics of 2016, are some of the most glaring examples of the economic downfalls of hosting an Olympic game. Besides, the raging pandemic has only added fuel to the burning question - is hosting Olympic games feasible anymore? A little deep-dive would open the doors for massive conversations around the stealthy economics that runs the Olympics from start to finish.

The Cost of Hosting the Olympic Games

IOC demands bidding cities to first invest large sums of money in evaluating, planning, preparing, and submitting a proposal to IOC. For the 2016 bid, Tokyo spent over $150 million to win, and they still failed to secure the bid that went to Rio. However, Tokyo was relentless and again invested an additional 70 million to secure the 2020 bid while Toronto backed away as they could not afford the $60 million required to make for the 2024 bid. Once selected the host cities have around seven years to a decade to prepare. The host city is bestowed with the responsibility to shoulder the overall cost of organizing the mega event, with little to no help from the International Olympic Committee (IOC). Historically, till the twentieth century, most of the host cities were part of the rich, developed nation only with few exceptions like Mexico City, Moscow, and Seoul—hosts of 1968, 1980, and 1988 Summer Games, respectively. In 1984, Los Angeles secured the bid to host the Olympics and was wildly successful as the organizers made profits that were otherwise unheard of. With the 1984 Los Angeles success, more developing countries took interest with the hope to yield fruits of development and profits. IOC recognized the interest and started encouraging bids from developing countries—2008 Beijing Summer Games who will also host the Winter Olympics in 2022. As host cities gear up to arrange, they specifically need to overlook three major categories: general infrastructure that includes transportation and huge a Olympic Village to accommodate athletes, coaches, fans, and tourists; specific sports infrastructure like track, football stadiums, shooting range, etc., for competition venues; and operational costs, that includes security, general administration, as well as the opening and closing Olympic ceremony. While it is increasingly easier for a high-income city to build state-of-the-art sports facilities, not every developing nation is equipped to handle the cost.

Perplexed Numbers

IOC requires the hosting cities to build over 40,000 rooms for accommodation, so much so that Rio de Janeiro had to build an extra 15,000 hotel rooms to keep up with the influx. The infrastructure costs can range from $5 billion to over $50 billion. These rooms in Rio were later meant to be sold as luxurious apartments to the public but they fell flat and are now lying idle and vacant. Another problematic addition is overtly known as white elephants or expensive facilities which have limited to almost negligible post-Olympics use. Beijing’s “Bird’s Nest” stadium was built for $460 million and requires over $10 million every year to maintain and remains mostly unused. Similarly, most of the facilities built for the 2004 Athens Olympics contributed immensely to the Greek debt crisis. It also took Montreal until 2006 to pay the debt from the 1976 Games. Besides, security also plays a major concern as the Olympics have long been the target for terrorists. After the fatal attacks in both Munich in 1972 and Atlanta in 1996, investing in security was a must. It was furthered by the post-September 11, 2001, era where security costs saw an exponential rise.

Perplexed Numbers

IOC also needs the host cities to upgrade or construct new roads, train lines, subways, and airports. Most of Beijing’s 2008 budget of $45 billion went into building rail, roads, and airports. Often than ever, the Olympic track is incompatible with modern soccer stadiums as there’s an undesirably large separation between the crowd and the playing field. The Boston city failed to bid for the 2024 Summer Games as the proposed bill to build an entirely new stadium for the track and field event stood at a whopping $400 million dollars. This was despite Boston having over four large existing outdoor sports stadiums!

Therefore, it’s quite impossible to paint an accurate financial accounting of Olympic expenditures in various cities as multiple reasons can add up to its cost. Right now, the Tokyo Olympic authorities have spent millions of dollars to maintain the facilities and keep them in proper conditions. The budget has already risen by 22% until the end of 2020. And the pandemic, vaccine shortage have only added more to the Tokyo authorities’ dismay. The implicit costs have forced host city bidders to back out, as more countries become aware of the immediate downfalls of hosting Olympic games.

How Do the Benefits Stand When Compared to the Costs?

Most of the recent games have overrun and have pushed the cities to undergo debt that has taken years to pay back. It was the 1984 Olympics in Los Angeles that remained profitable as they were in a position to negotiate with the IOC and relied heavily on the already existing sporting infrastructure. The profits incurred attracted other cities to competitive bids, but the cost of hosting only skyrocketed in the next few years, and the revenue was pushed down to just a fraction of the total expenditure. While Beijing’s 2008 Summer Olympics generated $3.6 billion in revenue, it was just 1/10th when compared to the overall budget that went over $40 billion in costs. Similarly, the 2012 London Summer Games generated $5.2 billion in revenue but fell flat to the budget of $18 billion in costs. Furthermore, to add to the woes of the hosting nation, the IOC keeps the largest chunk of the money generated by the broadcasts or games.

Although many argue, such mega-events boost economic output, that's mostly not the case. While Sydney spent $250 million in 2000, Athens spent over four times its amount of $1.5 billion in 2004, and that budget has only risen. Countries have invested massive sums to create the infrastructure demanded by IOC. The costs have spiraled and overrun by a huge margin. It went to over $45 billion for the Beijing Summer Games in 2008, and over $50 billion for the Winter Games in Sochi, in 2014, and in more recent times over $20.1 billion for Rio de Janeiro in 2016.

These extra costs have led to renewed skepticism, with a large number of cities withdrawn their bids over cost concerns. Both Oslo and Stockholm backed out of their 2022 bids upon realizing the huge costs. Similarly, Boston also withdrew from consideration for the 2024 Games. In the end, as most finalists i.e., Budapest, Hamburg, and Rome, also withdrew, it was upon IOC to decide their future. In an unprecedented move, the IOC played a smart move and chose the 2024 and 2028 venues simultaneously in 2017, by rewarding Paris and Los Angeles for hosting.

To Wrap Up,

The constant overruns and cities looming into debt have forced most economists to come to a consensus that IOC needs to add reforms and favor new ideas. From the IOC bidding process that encourages unnecessary spending, to the corruption allegations, IOC is riddled with issues that need to be addressed soon. Besides, as the global world moves towards a new sustainable direction, IOC has introduced IOC 2020+5 reforms, that not only foster’s sustainable Olympic Games but also looks into diversity, strengthen safe sport and the protection of clean athletes along with providing the long-needed respite to the host cities or regions. However, the world is rethinking and providing innovative ideas and one of such teams is the Germans who are introducing RHEIN RHUR city that plans to spread the games over 13 different cities which are inner connected and would also fit into the sustainable agenda put forward by IOC. This approach would not only improve outcomes but also breathe in life to the otherwise lost proposition of the great OLYMPICS.

As Japan and global athletes gear up to compete in the postponed Tokyo Olympics that is finally going to take place amidst a raging pandemic, the buzz around the impact of the Olympics has only risen to prominence. Olympic Games is a premier sporting game that draws over a resounding 10,000 athletes who represent 204 countries, compete in 300 individual events across 28 different sports, with over a billion audience glued to the broadcasting channels. Competing in the Olympics is celebrated as the global pride that brings global citizens together.

The quadrennial Games have evolved over the years and have raised major concerns among economists on their both short and long-term impact. Overrun budget of the Sochi Winter Games, 2018 to the disastrous debt that left Rio De Janeiro to bare bones from the Summer Olympics of 2016, are some of the most glaring examples of the economic downfalls of hosting an Olympic game. Besides, the raging pandemic has only added fuel to the burning question - is hosting Olympic games feasible anymore? A little deep-dive would open the doors for massive conversations around the stealthy economics that runs the Olympics from start to finish.

The Cost of Hosting the Olympic Games

IOC demands bidding cities to first invest large sums of money in evaluating, planning, preparing, and submitting a proposal to IOC. For the 2016 bid, Tokyo spent over $150 million to win, and they still failed to secure the bid that went to Rio. However, Tokyo was relentless and again invested an additional 70 million to secure the 2020 bid while Toronto backed away as they could not afford the $60 million required to make for the 2024 bid. Once selected the host cities have around seven years to a decade to prepare. The host city is bestowed with the responsibility to shoulder the overall cost of organizing the mega event, with little to no help from the International Olympic Committee (IOC). Historically, till the twentieth century, most of the host cities were part of the rich, developed nation only with few exceptions like Mexico City, Moscow, and Seoul—hosts of 1968, 1980, and 1988 Summer Games, respectively. In 1984, Los Angeles secured the bid to host the Olympics and was wildly successful as the organizers made profits that were otherwise unheard of. With the 1984 Los Angeles success, more developing countries took interest with the hope to yield fruits of development and profits. IOC recognized the interest and started encouraging bids from developing countries—2008 Beijing Summer Games who will also host the Winter Olympics in 2022. As host cities gear up to arrange, they specifically need to overlook three major categories: general infrastructure that includes transportation and huge a Olympic Village to accommodate athletes, coaches, fans, and tourists; specific sports infrastructure like track, football stadiums, shooting range, etc., for competition venues; and operational costs, that includes security, general administration, as well as the opening and closing Olympic ceremony. While it is increasingly easier for a high-income city to build state-of-the-art sports facilities, not every developing nation is equipped to handle the cost.

Perplexed Numbers

IOC requires the hosting cities to build over 40,000 rooms for accommodation, so much so that Rio de Janeiro had to build an extra 15,000 hotel rooms to keep up with the influx. The infrastructure costs can range from $5 billion to over $50 billion. These rooms in Rio were later meant to be sold as luxurious apartments to the public but they fell flat and are now lying idle and vacant. Another problematic addition is overtly known as white elephants or expensive facilities which have limited to almost negligible post-Olympics use. Beijing’s “Bird’s Nest” stadium was built for $460 million and requires over $10 million every year to maintain and remains mostly unused. Similarly, most of the facilities built for the 2004 Athens Olympics contributed immensely to the Greek debt crisis. It also took Montreal until 2006 to pay the debt from the 1976 Games. Besides, security also plays a major concern as the Olympics have long been the target for terrorists. After the fatal attacks in both Munich in 1972 and Atlanta in 1996, investing in security was a must. It was furthered by the post-September 11, 2001, era where security costs saw an exponential rise.

Perplexed Numbers

IOC also needs the host cities to upgrade or construct new roads, train lines, subways, and airports. Most of Beijing’s 2008 budget of $45 billion went into building rail, roads, and airports. Often than ever, the Olympic track is incompatible with modern soccer stadiums as there’s an undesirably large separation between the crowd and the playing field. The Boston city failed to bid for the 2024 Summer Games as the proposed bill to build an entirely new stadium for the track and field event stood at a whopping $400 million dollars. This was despite Boston having over four large existing outdoor sports stadiums!

Therefore, it’s quite impossible to paint an accurate financial accounting of Olympic expenditures in various cities as multiple reasons can add up to its cost. Right now, the Tokyo Olympic authorities have spent millions of dollars to maintain the facilities and keep them in proper conditions. The budget has already risen by 22% until the end of 2020. And the pandemic, vaccine shortage have only added more to the Tokyo authorities’ dismay. The implicit costs have forced host city bidders to back out, as more countries become aware of the immediate downfalls of hosting Olympic games.

How Do the Benefits Stand When Compared to the Costs?

Most of the recent games have overrun and have pushed the cities to undergo debt that has taken years to pay back. It was the 1984 Olympics in Los Angeles that remained profitable as they were in a position to negotiate with the IOC and relied heavily on the already existing sporting infrastructure. The profits incurred attracted other cities to competitive bids, but the cost of hosting only skyrocketed in the next few years, and the revenue was pushed down to just a fraction of the total expenditure. While Beijing’s 2008 Summer Olympics generated $3.6 billion in revenue, it was just 1/10th when compared to the overall budget that went over $40 billion in costs. Similarly, the 2012 London Summer Games generated $5.2 billion in revenue but fell flat to the budget of $18 billion in costs. Furthermore, to add to the woes of the hosting nation, the IOC keeps the largest chunk of the money generated by the broadcasts or games.

Although many argue, such mega-events boost economic output, that's mostly not the case. While Sydney spent $250 million in 2000, Athens spent over four times its amount of $1.5 billion in 2004, and that budget has only risen. Countries have invested massive sums to create the infrastructure demanded by IOC. The costs have spiraled and overrun by a huge margin. It went to over $45 billion for the Beijing Summer Games in 2008, and over $50 billion for the Winter Games in Sochi, in 2014, and in more recent times over $20.1 billion for Rio de Janeiro in 2016.

These extra costs have led to renewed skepticism, with a large number of cities withdrawn their bids over cost concerns. Both Oslo and Stockholm backed out of their 2022 bids upon realizing the huge costs. Similarly, Boston also withdrew from consideration for the 2024 Games. In the end, as most finalists i.e., Budapest, Hamburg, and Rome, also withdrew, it was upon IOC to decide their future. In an unprecedented move, the IOC played a smart move and chose the 2024 and 2028 venues simultaneously in 2017, by rewarding Paris and Los Angeles for hosting.

To Wrap Up,

The constant overruns and cities looming into debt have forced most economists to come to a consensus that IOC needs to add reforms and favor new ideas. From the IOC bidding process that encourages unnecessary spending, to the corruption allegations, IOC is riddled with issues that need to be addressed soon. Besides, as the global world moves towards a new sustainable direction, IOC has introduced IOC 2020+5 reforms, that not only foster’s sustainable Olympic Games but also looks into diversity, strengthen safe sport and the protection of clean athletes along with providing the long-needed respite to the host cities or regions. However, the world is rethinking and providing innovative ideas and one of such teams is the Germans who are introducing RHEIN RHUR city that plans to spread the games over 13 different cities which are inner connected and would also fit into the sustainable agenda put forward by IOC. This approach would not only improve outcomes but also breathe in life to the otherwise lost proposition of the great OLYMPICS.

As Japan and global athletes gear up to compete in the postponed Tokyo Olympics that is finally going to take place amidst a raging pandemic, the buzz around the impact of the Olympics has only risen to prominence. Olympic Games is a premier sporting game that draws over a resounding 10,000 athletes who represent 204 countries, compete in 300 individual events across 28 different sports, with over a billion audience glued to the broadcasting channels. Competing in the Olympics is celebrated as the global pride that brings global citizens together.

The quadrennial Games have evolved over the years and have raised major concerns among economists on their both short and long-term impact. Overrun budget of the Sochi Winter Games, 2018 to the disastrous debt that left Rio De Janeiro to bare bones from the Summer Olympics of 2016, are some of the most glaring examples of the economic downfalls of hosting an Olympic game. Besides, the raging pandemic has only added fuel to the burning question - is hosting Olympic games feasible anymore? A little deep-dive would open the doors for massive conversations around the stealthy economics that runs the Olympics from start to finish.

The Cost of Hosting the Olympic Games

IOC demands bidding cities to first invest large sums of money in evaluating, planning, preparing, and submitting a proposal to IOC. For the 2016 bid, Tokyo spent over $150 million to win, and they still failed to secure the bid that went to Rio. However, Tokyo was relentless and again invested an additional 70 million to secure the 2020 bid while Toronto backed away as they could not afford the $60 million required to make for the 2024 bid. Once selected the host cities have around seven years to a decade to prepare. The host city is bestowed with the responsibility to shoulder the overall cost of organizing the mega event, with little to no help from the International Olympic Committee (IOC). Historically, till the twentieth century, most of the host cities were part of the rich, developed nation only with few exceptions like Mexico City, Moscow, and Seoul—hosts of 1968, 1980, and 1988 Summer Games, respectively. In 1984, Los Angeles secured the bid to host the Olympics and was wildly successful as the organizers made profits that were otherwise unheard of. With the 1984 Los Angeles success, more developing countries took interest with the hope to yield fruits of development and profits. IOC recognized the interest and started encouraging bids from developing countries—2008 Beijing Summer Games who will also host the Winter Olympics in 2022. As host cities gear up to arrange, they specifically need to overlook three major categories: general infrastructure that includes transportation and huge a Olympic Village to accommodate athletes, coaches, fans, and tourists; specific sports infrastructure like track, football stadiums, shooting range, etc., for competition venues; and operational costs, that includes security, general administration, as well as the opening and closing Olympic ceremony. While it is increasingly easier for a high-income city to build state-of-the-art sports facilities, not every developing nation is equipped to handle the cost.

Perplexed Numbers

IOC requires the hosting cities to build over 40,000 rooms for accommodation, so much so that Rio de Janeiro had to build an extra 15,000 hotel rooms to keep up with the influx. The infrastructure costs can range from $5 billion to over $50 billion. These rooms in Rio were later meant to be sold as luxurious apartments to the public but they fell flat and are now lying idle and vacant. Another problematic addition is overtly known as white elephants or expensive facilities which have limited to almost negligible post-Olympics use. Beijing’s “Bird’s Nest” stadium was built for $460 million and requires over $10 million every year to maintain and remains mostly unused. Similarly, most of the facilities built for the 2004 Athens Olympics contributed immensely to the Greek debt crisis. It also took Montreal until 2006 to pay the debt from the 1976 Games. Besides, security also plays a major concern as the Olympics have long been the target for terrorists. After the fatal attacks in both Munich in 1972 and Atlanta in 1996, investing in security was a must. It was furthered by the post-September 11, 2001, era where security costs saw an exponential rise.

Perplexed Numbers

IOC also needs the host cities to upgrade or construct new roads, train lines, subways, and airports. Most of Beijing’s 2008 budget of $45 billion went into building rail, roads, and airports. Often than ever, the Olympic track is incompatible with modern soccer stadiums as there’s an undesirably large separation between the crowd and the playing field. The Boston city failed to bid for the 2024 Summer Games as the proposed bill to build an entirely new stadium for the track and field event stood at a whopping $400 million dollars. This was despite Boston having over four large existing outdoor sports stadiums!

Therefore, it’s quite impossible to paint an accurate financial accounting of Olympic expenditures in various cities as multiple reasons can add up to its cost. Right now, the Tokyo Olympic authorities have spent millions of dollars to maintain the facilities and keep them in proper conditions. The budget has already risen by 22% until the end of 2020. And the pandemic, vaccine shortage have only added more to the Tokyo authorities’ dismay. The implicit costs have forced host city bidders to back out, as more countries become aware of the immediate downfalls of hosting Olympic games.

How Do the Benefits Stand When Compared to the Costs?

Most of the recent games have overrun and have pushed the cities to undergo debt that has taken years to pay back. It was the 1984 Olympics in Los Angeles that remained profitable as they were in a position to negotiate with the IOC and relied heavily on the already existing sporting infrastructure. The profits incurred attracted other cities to competitive bids, but the cost of hosting only skyrocketed in the next few years, and the revenue was pushed down to just a fraction of the total expenditure. While Beijing’s 2008 Summer Olympics generated $3.6 billion in revenue, it was just 1/10th when compared to the overall budget that went over $40 billion in costs. Similarly, the 2012 London Summer Games generated $5.2 billion in revenue but fell flat to the budget of $18 billion in costs. Furthermore, to add to the woes of the hosting nation, the IOC keeps the largest chunk of the money generated by the broadcasts or games.

Although many argue, such mega-events boost economic output, that's mostly not the case. While Sydney spent $250 million in 2000, Athens spent over four times its amount of $1.5 billion in 2004, and that budget has only risen. Countries have invested massive sums to create the infrastructure demanded by IOC. The costs have spiraled and overrun by a huge margin. It went to over $45 billion for the Beijing Summer Games in 2008, and over $50 billion for the Winter Games in Sochi, in 2014, and in more recent times over $20.1 billion for Rio de Janeiro in 2016.

These extra costs have led to renewed skepticism, with a large number of cities withdrawn their bids over cost concerns. Both Oslo and Stockholm backed out of their 2022 bids upon realizing the huge costs. Similarly, Boston also withdrew from consideration for the 2024 Games. In the end, as most finalists i.e., Budapest, Hamburg, and Rome, also withdrew, it was upon IOC to decide their future. In an unprecedented move, the IOC played a smart move and chose the 2024 and 2028 venues simultaneously in 2017, by rewarding Paris and Los Angeles for hosting.

To Wrap Up,

The constant overruns and cities looming into debt have forced most economists to come to a consensus that IOC needs to add reforms and favor new ideas. From the IOC bidding process that encourages unnecessary spending, to the corruption allegations, IOC is riddled with issues that need to be addressed soon. Besides, as the global world moves towards a new sustainable direction, IOC has introduced IOC 2020+5 reforms, that not only foster’s sustainable Olympic Games but also looks into diversity, strengthen safe sport and the protection of clean athletes along with providing the long-needed respite to the host cities or regions. However, the world is rethinking and providing innovative ideas and one of such teams is the Germans who are introducing RHEIN RHUR city that plans to spread the games over 13 different cities which are inner connected and would also fit into the sustainable agenda put forward by IOC. This approach would not only improve outcomes but also breathe in life to the otherwise lost proposition of the great OLYMPICS.

If you are the owner of a newly-launched business, it can often be hard to maintain a balance between the current assets of your business and your current liabilities. If this balance is disturbed, your business can find itself in a working capital deficit and you may face a hard time meeting day-to-day expenses. That’s when choosing the right lending option may be your best bet. 

Let’s look at what options exist for getting working capital for your new business. 

Business Loan

• One of the most popular and effective means of raising working capital for a new business is availing a business loan from a bank or a financial institution. 
• A business loan is a form of a lending agreement made between the lender and the business owner. As per the agreement, the lender agrees to give out a specific amount of money to the business owner as long as the latter repays it, with added interest, according to a predetermined schedule. 
• The time period for which the loan is availed is known as its tenure and the regular amounts paid back by the borrower are known as equated monthly installments or EMIs.
• While it is possible to take up a personal loan and utilise it for the purposes of your business, it is often more useful to instead opt for a specialised loan designed to cater to the needs of your specific business. For example, some business loans are geared towards helping you kickstart your small business, others are intended specifically for purchasing new equipment or machinery. 
• Unlike traditional business loans, new-age business loans are designed to offer greater flexibility to the borrower, allowing them to make a wider choice of tenure.
• However, these loans typically require a high credit rating for both the company and the individual promoters. Depending on the creditworthiness of the company and the promoters as well as past payment track record, these loans could be secured via collaterals such as personal property, shares or other similar secured collateral.
• Depending on whether these loans are secured or unsecured, in today’s interest regime, rates could range between 8% to 18% per annum.

Business Line of Credit

• A business line of credit is often described as a hybrid of regular loans and business credit cards. 
• It is a type of revolving loan offered by banks and financial institutions that provides access to a specific amount of capital to you as a business owner. 

• You can utilise this capital as and when required to meet the needs of your new business and then repay either immediately or over a period of time. As soon as the offered capital is borrowed, the interest rate is applied to the amount.
• A business line of credit also requires approval of the borrowers from the lender which is determined by their credit scores similar to how regular business loans and business credit cards work.
• Business line of credit works similarly to a business loan in terms of requirements for credit score, credit history and collateral.

Business Credit Cards

• Business credit cards are ideal for keeping professional and personal expenses apart. 
• Also known as corporate credit cards, these forms of credit cards are specifically assigned to a business, not an individual, in order to meet the regular financial needs of that business. 

• They offer an opportunity for business owners to easily get access to short-term working capital. These credit cards can be used to make a variety of purchases, payments and bookings that might be necessitated by the requirements of business operations.
• If the working capital required is not substantial, your business credit card can easily help you fulfill any financial gaps you might be experiencing without having to spend time waiting for approval. 
• If you have a new small business, having a well-maintained business credit card can also help your company build credit over time and improve your loan approval chances in the future.

Partner with a Fintech Company

• You could consider the option of partnering with a company that specialises in exactly that aspect you wish to seek working capital for. 

• Fintech companies are financial institutions using technologies like cell phones and computers to provide financial services to the customers. They can be of any size from a startup to a big organisation.
• They have specialized expertise, programs and platforms that are designed to pump cash into the supply chain finance ecosystem and help raise working capital for new businesses. 
• Compared to traditional means of delivering financial services, fintech companies are often technologically more efficient.
• Applying for a loan with a fintech partner is generally fully digital. One can apply directly on their websites or their apps and expect a response within 48-72 hours.

Angel Investors

• Angel investors are individuals with high-net worth who are seeking to provide financial assistance to new ventures and businesses. This financial assistance is often offered in exchange for a share of ownership in the business, typically in the form of equity.
• Depending on the type of investment and participation they are looking for, angel investors can either provide a one-time financial backing or continue to invest and support the new business through various processes. 
• Angel investors are often on the lookout for new, innovative business opportunities and often like to participate in various aspects of the ventures in which they invest. 
• When approaching an angel investor, it is best to have a clear, detailed pitch deck that illustrates why your business is essential and how you plan on expanding it over the coming years.
• There are several organized forums for angel investors to come together for investment opportunities. Some India-centric angel investment organizations include Mumbai Angels, LetsVenture, Indian Angel Network, Venture Catalysts among many others. 
• You can submit your business plans or pitches directly to these forums via their websites.

Friends and Family

• Taking a loan from close friends and family members can have its obvious upsides. 

• If you are receiving a loan from your close loved ones, you are likely to receive it quickly and without hesitation. It also has the advantage of sidestepping the process of credit approval.
• However, involving family members and friends into matters of business can often prove to be tricky and can easily get complicated. 
• In the event that you are unable to pay back the loan amount within the promised time frame, relationships can get tense and friction might arise. 
• Taking a loan from friends and family should ideally be considered as a last resort option or handled with immense caution by establishing clear terms and maintaining a professional approach towards repayments.

This news is published as it is from the publisher’s website. Please visit www.forbes.com to read the article.

The need for adequate capital for individuals and businesses is paramount. Capital can be accessed in the form of a loan from a bank or a non-banking financial company (NBFC). Loans are primarily of two kinds — secured and unsecured.

A secured loan is a type of loan which is provided in return for an asset. The financial institution holds the borrower’s assets as security against the non-repayment of the loan. On the other hand, banks also offer loans without any collateral. Unsecured, or collateral-free loans, are sanctioned after taking into account various factors like the creditworthiness of the borrower. From a lender’s perspective, unsecured loans carry more risks than a secured loan.

The two main differentiating factors between unsecured and secured loans are:

• Higher interest rate

While the interest rate varies from lender to lender, unsecured loans have a higher interest rate than secured loans. Unsecured loans are relatively riskier for the lender and higher interest rates help in offsetting the risk at a faster pace.

• Higher credit scores

Since lenders do not ask for collateral while offering an unsecured loan, they try to accumulate as much data as possible on the creditworthiness of the borrower. A host of data points are analysed before an unsecured loan is sanctioned and hence, borrowers require a strong credit profile to avail a loan. Some lenders offer an unsecured loan even to individuals with low credit scores, but the interest rate is significantly higher.

Types of Unsecured Loans Based on Tenure and Repayment

A young population and economic mobility have led to a surge in demand for unsecured loans. The variety of loans on offer is one of the primary drivers of demand for unsecured loans. For instance, an unsecured loan can be availed for activities ranging from education and marriage to agriculture and business.

They are categorized into three broad types:

Revolving loans

It is a type of financial instrument that allows borrowers to withdraw an amount, repay it and withdraw again. A revolving loan assigns a credit limit to the borrower and they are free to borrow as many times as required without exceeding the limit. It is a flexible loan that can be utilised and rapid multiple times during the tenure.

For instance, individual ABC avails a revolving loan of INR 1 lakh for two years. In the two-year tenure, the amount outstanding with ABC cannot exceed INR 1 lakh. ABC can withdraw the entire INR 1 lakh in a day and repay INR 50,000 in a month. She will be eligible to receive INR 50,000 again after the repayment.

At the end of the tenure, the borrower has to repay the outstanding amount along with the interest. This type of unsecured loan is ideal to take care of working capital needs or a temporary cash crunch. The borrower does not have to stress over fixed repayment schedules. Generally, revolving loans have variable interest rates.

Term loans

Revolving loans provide the flexibility of payment to borrowers. Term loans are the exact opposite. In contrast to revolving loans, term loans have a fixed interest rate and tenure. Individuals in need of funds for fixed assets or to make long-term investments should opt for term loans.

Consolidation loan

The easy availability of finance can lead to an accumulation of loans. Many people opt for a consolidation loan to repay accumulated loans. As the name suggests, a consolidation loan helps in the consolidation of existing loans.

Types of Unsecured Loans Based on Utilization

The categorisation of unsecured loans can be finetuned on the basis of the end-use.

Wedding loan

A wedding is an important milestone in most people’s lives. Getting a child married can take up the bulk of one’s savings. A wedding loan is a flexible financial instrument that can be used to take care of wedding-related expenses.

Vacation loan

A variety of loans are packaged as vacation loans. A term loan can be availed to finance the entire trip. For expenses like shopping and eating, a revolving loan will be more suitable. A credit card can also be used for vacation expenses.

Home renovation loan

One can utilise a home renovation loan to alter the appearance of their house. While a home renovation loan allows a number of acquisitions and modifications, one is not allowed to buy furniture and appliances.

Top-up loan

Sometimes borrowers require an additional amount over an existing loan. The additional amount is called a top-up loan. In the case of a top-up loan, borrowers club the pre-existing loan and the additional loan into one and the borrower has to pay a single monthly instalment in the place of two separate payments.

Bridge loan

Bridge loans have been designed to take care of short-duration fund requirements. The tenure of bridge loans is generally less than one year.

Consumer durable loan

In the digital world, gadgets and appliances have become a necessity. A consumer durable loan helps in the purchase of gadgets or appliances. While many lenders provide a term loan for consumer durables, some also offer revolving credit, with the buyer having the freedom of overutilization and repayment of the funds.

Business loan

Many lenders offer loans to finance businesses in helping them invest in infrastructure or take care of working capital needs. A business loan is akin to a revolving loan, only the outstanding amount attracts interest. There are multiple mediums of providing financing to businesses, receivables financing is one of the most common.

Receivables financing

Some businesses run completely on cash sales while others have to contend with long credit cycles. If a business suddenly has to offer credit to a large number of customers simultaneously, how is it supposed to run smoothly? It will need capital to operate.

One option is to opt for a business loan, but the processing of business loans takes time and the applicant may also have to provide collateral. Rather than obtaining a business loan, many businesses opt for trade receivables financing. 

The total amount outstanding that a company has billed for products and services but have not received the payment yet is known as account receivables. When a lender utilises the account receivables of a company to provide unsecured financing, it is known as trade receivables financing.

There are two ways to get trade receivables financing:

• Factoring: This is a globally accepted way of trade receivables financing. Businesses sell the complete receivables account to factoring companies to raise capital. The factoring company pays the business upfront and gets the ownership of the trade receivables account. The risk of default shifts to the financier along with the ownership of the trade receivables account.
• Invoice discounting: In contrast to factoring, the ownership of the trade receivables account rests with the business in case of invoice discounting. The financier uses the account receivables as collateral to provide the required funds to the business. The amount disbursed is generally lower than the outstanding amount of the account receivables.

This news is published as it is from the publisher’s website. Please visit www.forbes.com to read the article.

If you are the owner of a newly-launched business, it can often be hard to maintain a balance between the current assets of your business and your current liabilities. If this balance is disturbed, your business can find itself in a working capital deficit and you may face a hard time meeting day-to-day expenses. That’s when choosing the right lending option may be your best bet. 

Let’s look at what options exist for getting working capital for your new business. 

Business Loan

• One of the most popular and effective means of raising working capital for a new business is availing a business loan from a bank or a financial institution. 
• A business loan is a form of a lending agreement made between the lender and the business owner. As per the agreement, the lender agrees to give out a specific amount of money to the business owner as long as the latter repays it, with added interest, according to a predetermined schedule. 
• The time period for which the loan is availed is known as its tenure and the regular amounts paid back by the borrower are known as equated monthly installments or EMIs.
• While it is possible to take up a personal loan and utilise it for the purposes of your business, it is often more useful to instead opt for a specialised loan designed to cater to the needs of your specific business. For example, some business loans are geared towards helping you kickstart your small business, others are intended specifically for purchasing new equipment or machinery. 
• Unlike traditional business loans, new-age business loans are designed to offer greater flexibility to the borrower, allowing them to make a wider choice of tenure.
• However, these loans typically require a high credit rating for both the company and the individual promoters. Depending on the creditworthiness of the company and the promoters as well as past payment track record, these loans could be secured via collaterals such as personal property, shares or other similar secured collateral.
• Depending on whether these loans are secured or unsecured, in today’s interest regime, rates could range between 8% to 18% per annum.

Business Line of Credit

• A business line of credit is often described as a hybrid of regular loans and business credit cards. 
• It is a type of revolving loan offered by banks and financial institutions that provides access to a specific amount of capital to you as a business owner. 

• You can utilise this capital as and when required to meet the needs of your new business and then repay either immediately or over a period of time. As soon as the offered capital is borrowed, the interest rate is applied to the amount.
• A business line of credit also requires approval of the borrowers from the lender which is determined by their credit scores similar to how regular business loans and business credit cards work.
• Business line of credit works similarly to a business loan in terms of requirements for credit score, credit history and collateral.

Business Credit Cards

• Business credit cards are ideal for keeping professional and personal expenses apart. 
• Also known as corporate credit cards, these forms of credit cards are specifically assigned to a business, not an individual, in order to meet the regular financial needs of that business. 

• They offer an opportunity for business owners to easily get access to short-term working capital. These credit cards can be used to make a variety of purchases, payments and bookings that might be necessitated by the requirements of business operations.
• If the working capital required is not substantial, your business credit card can easily help you fulfill any financial gaps you might be experiencing without having to spend time waiting for approval. 
• If you have a new small business, having a well-maintained business credit card can also help your company build credit over time and improve your loan approval chances in the future.

Partner with a Fintech Company

• You could consider the option of partnering with a company that specialises in exactly that aspect you wish to seek working capital for. 

• Fintech companies are financial institutions using technologies like cell phones and computers to provide financial services to the customers. They can be of any size from a startup to a big organisation.
• They have specialized expertise, programs and platforms that are designed to pump cash into the supply chain finance ecosystem and help raise working capital for new businesses. 
• Compared to traditional means of delivering financial services, fintech companies are often technologically more efficient.
• Applying for a loan with a fintech partner is generally fully digital. One can apply directly on their websites or their apps and expect a response within 48-72 hours.

Angel Investors

• Angel investors are individuals with high-net worth who are seeking to provide financial assistance to new ventures and businesses. This financial assistance is often offered in exchange for a share of ownership in the business, typically in the form of equity.
• Depending on the type of investment and participation they are looking for, angel investors can either provide a one-time financial backing or continue to invest and support the new business through various processes. 
• Angel investors are often on the lookout for new, innovative business opportunities and often like to participate in various aspects of the ventures in which they invest. 
• When approaching an angel investor, it is best to have a clear, detailed pitch deck that illustrates why your business is essential and how you plan on expanding it over the coming years.
• There are several organized forums for angel investors to come together for investment opportunities. Some India-centric angel investment organizations include Mumbai Angels, LetsVenture, Indian Angel Network, Venture Catalysts among many others. 
• You can submit your business plans or pitches directly to these forums via their websites.

Friends and Family

• Taking a loan from close friends and family members can have its obvious upsides. 

• If you are receiving a loan from your close loved ones, you are likely to receive it quickly and without hesitation. It also has the advantage of sidestepping the process of credit approval.
• However, involving family members and friends into matters of business can often prove to be tricky and can easily get complicated. 
• In the event that you are unable to pay back the loan amount within the promised time frame, relationships can get tense and friction might arise. 
• Taking a loan from friends and family should ideally be considered as a last resort option or handled with immense caution by establishing clear terms and maintaining a professional approach towards repayments.

This news is published as it is from the publisher’s website. Please visit www.forbes.com to read the article.

If you are the owner of a newly-launched business, it can often be hard to maintain a balance between the current assets of your business and your current liabilities. If this balance is disturbed, your business can find itself in a working capital deficit and you may face a hard time meeting day-to-day expenses. That’s when choosing the right lending option may be your best bet. 

Let’s look at what options exist for getting working capital for your new business. 

Business Loan

• One of the most popular and effective means of raising working capital for a new business is availing a business loan from a bank or a financial institution. 
• A business loan is a form of a lending agreement made between the lender and the business owner. As per the agreement, the lender agrees to give out a specific amount of money to the business owner as long as the latter repays it, with added interest, according to a predetermined schedule. 
• The time period for which the loan is availed is known as its tenure and the regular amounts paid back by the borrower are known as equated monthly installments or EMIs.
• While it is possible to take up a personal loan and utilise it for the purposes of your business, it is often more useful to instead opt for a specialised loan designed to cater to the needs of your specific business. For example, some business loans are geared towards helping you kickstart your small business, others are intended specifically for purchasing new equipment or machinery. 
• Unlike traditional business loans, new-age business loans are designed to offer greater flexibility to the borrower, allowing them to make a wider choice of tenure.
• However, these loans typically require a high credit rating for both the company and the individual promoters. Depending on the creditworthiness of the company and the promoters as well as past payment track record, these loans could be secured via collaterals such as personal property, shares or other similar secured collateral.
• Depending on whether these loans are secured or unsecured, in today’s interest regime, rates could range between 8% to 18% per annum.

Business Line of Credit

• A business line of credit is often described as a hybrid of regular loans and business credit cards. 
• It is a type of revolving loan offered by banks and financial institutions that provides access to a specific amount of capital to you as a business owner. 

• You can utilise this capital as and when required to meet the needs of your new business and then repay either immediately or over a period of time. As soon as the offered capital is borrowed, the interest rate is applied to the amount.
• A business line of credit also requires approval of the borrowers from the lender which is determined by their credit scores similar to how regular business loans and business credit cards work.
• Business line of credit works similarly to a business loan in terms of requirements for credit score, credit history and collateral.

Business Credit Cards

• Business credit cards are ideal for keeping professional and personal expenses apart. 
• Also known as corporate credit cards, these forms of credit cards are specifically assigned to a business, not an individual, in order to meet the regular financial needs of that business. 

• They offer an opportunity for business owners to easily get access to short-term working capital. These credit cards can be used to make a variety of purchases, payments and bookings that might be necessitated by the requirements of business operations.
• If the working capital required is not substantial, your business credit card can easily help you fulfill any financial gaps you might be experiencing without having to spend time waiting for approval. 
• If you have a new small business, having a well-maintained business credit card can also help your company build credit over time and improve your loan approval chances in the future.

Partner with a Fintech Company

• You could consider the option of partnering with a company that specialises in exactly that aspect you wish to seek working capital for. 

• Fintech companies are financial institutions using technologies like cell phones and computers to provide financial services to the customers. They can be of any size from a startup to a big organisation.
• They have specialized expertise, programs and platforms that are designed to pump cash into the supply chain finance ecosystem and help raise working capital for new businesses. 
• Compared to traditional means of delivering financial services, fintech companies are often technologically more efficient.
• Applying for a loan with a fintech partner is generally fully digital. One can apply directly on their websites or their apps and expect a response within 48-72 hours.

Angel Investors

• Angel investors are individuals with high-net worth who are seeking to provide financial assistance to new ventures and businesses. This financial assistance is often offered in exchange for a share of ownership in the business, typically in the form of equity.
• Depending on the type of investment and participation they are looking for, angel investors can either provide a one-time financial backing or continue to invest and support the new business through various processes. 
• Angel investors are often on the lookout for new, innovative business opportunities and often like to participate in various aspects of the ventures in which they invest. 
• When approaching an angel investor, it is best to have a clear, detailed pitch deck that illustrates why your business is essential and how you plan on expanding it over the coming years.
• There are several organized forums for angel investors to come together for investment opportunities. Some India-centric angel investment organizations include Mumbai Angels, LetsVenture, Indian Angel Network, Venture Catalysts among many others. 
• You can submit your business plans or pitches directly to these forums via their websites.

Friends and Family

• Taking a loan from close friends and family members can have its obvious upsides. 

• If you are receiving a loan from your close loved ones, you are likely to receive it quickly and without hesitation. It also has the advantage of sidestepping the process of credit approval.
• However, involving family members and friends into matters of business can often prove to be tricky and can easily get complicated. 
• In the event that you are unable to pay back the loan amount within the promised time frame, relationships can get tense and friction might arise. 
• Taking a loan from friends and family should ideally be considered as a last resort option or handled with immense caution by establishing clear terms and maintaining a professional approach towards repayments.

This news is published as it is from the publisher’s website. Please visit www.forbes.com to read the article.

The fintech company is currently disbursing close to Rs 1,500 crore a month

CredAble is into supply-chain finance by providing liquidity programmes. It seeks to exponentially increase working capital flows by intermediating between corporates, vendors and banks. The fintech company is currently disbursing close to Rs 1,500 crore a month.

It hopes to top Rs 18,000 crore this calendar year, and hit Rs 20,000-25,000 crore in FY22. NIRAV CHOKSI, co-founder and chief executive officer, spoke to Raghu Mohan. Edited excerpts: How has the working capital world been during the pandemic? It was easily available to large corporates, the mid-market segment, and to ...

This news is published as it is from the publisher’s website. Please subscribe to www.business-standard.com to read the complete article.

Overview

The past decade has witnessed the frequency with which the term “blockchain” has been used. Its usage is even more pronounced when considering the banking, investing, or cryptocurrency sectors. Read on to understand what it is and how the hype surrounding it in the realm of financial technology can materialize in real-time.

Understanding the Realm of Blockchain

Blockchain refers to a kind of database. This database functions to collect information such that it can be stored electronically with the aid of a computer in operation. Databases are ordinarily designed to store large tracts of information that can be accessed with ease, sifted through, and manipulated with speed and efficiency by multiple users in a single go. 

Blockchains stand out among databases as they store or collect information in groups collectively known as blocks. Each of these blocks has a given storage capacity in place and once it reaches its limit, the block is added to another block that is already filled via a chain process thereby giving rise to a “blockchain”.

While a blockchain can house a wide variety of forms of information, it has most popularly been used as a ledger such that transactions can be stored. One of the most well-known users of blockchain technology is the cryptocurrency Bitcoin which serves as the most valuable cryptocurrency presently available.

The Tie that Binds Bitcoin to Cryptocurrency

Serving as a form of decentralized currency, Bitcoin allows its users to conduct transactions without making use of an intermediary in the form of a central bank or an administrator. Blockchain makes each of these transactions possible and protects these transactions from being forged or a Bitcoin from being double-spent. What makes cryptocurrencies stand out when set against the prevailing forms of physical currency is the fact that they are for the most part not issued by a central authority. This means that the currency as a result is objectively immune to succumbing to any interference or manipulative tactics employed by a government.

Transforming the Blockchain Fin-Tech Hype into Reality

Identifying the Gap that Persists -  In order for greater transparency and financial inclusion to persist, blockchain incorporated into the financial technology arena requires basic infrastructure to be honed towards making it a possibility. At the moment, there exist gaps in accessibility owed to a lack of access to financing opportunities. Although billions of dollars have been invested in and funnelled towards enhancing blockchain concepts, they have yet to become mainstream. 

The Need for Infrastructure - In order for this to occur, basic infrastructure needs to be set in place as it is currently lacking and hinders growth opportunities and the possibility to generate new jobs. Once basic infrastructure exists and is enhanced, blockchain within the financial technology sector can be better channelled towards solving problems that presently persist. These problems deal with a lack of transparency and inequitable access to financing opportunities including to those operating as small and medium-sized enterprises.

Financial Technology is Needed - Basic infrastructure must be developed prior to financial technology being able to advance such that it can provide greater transparency and financial inclusivity. Financial technology is of utmost importance and needs to gear itself towards not just reducing costs but also needs to make transparency and performance-oriented rigour be carried forth with greater levels of efficiency and reliability.

Making Financial Institutions More Amenable - Despite the fact that small and medium-sized enterprises might require fewer funds, financial institutions are ordinarily apprehensive of having to deal with them unless they can do so with efficiency and in a reliable manner wherein anti-money laundering and KYC risks pertaining to transparency and performance are in check.

Conclusion –

By enhancing the supply chain and digitizing it with a greater speed and by incorporating greater levels of interoperability, blockchain in the financial technology sector can reach greater heights and be even more transformative. Legal and regulatory challenges interspersed with the absence of standards presently stand in the way of progress.

References – 

https://www.investopedia.com/terms/b/blockchain.asp

https://blogs.adb.org/blog/how-turn-blockchain-fintech-hype-reality

Introduction 

The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those who avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality

The Asian Development Bank has made it clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women not only need to create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion-

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

References-

https://www.gtreview.com/magazine/volume-18-issue-3/making-case-gender-linked-trade-finance/

https://www.thehindubusinessline.com/money-and-banking/digital-technology-can-help-bridge-trade-finance-gap-says-adb/article29440780.ece

Overview

The past decade has witnessed the frequency with which the term “blockchain” has been used. Its usage is even more pronounced when considering the banking, investing, or cryptocurrency sectors. Read on to understand what it is and how the hype surrounding it in the realm of financial technology can materialize in real-time.

Understanding the Realm of Blockchain

Blockchain refers to a kind of database. This database functions to collect information such that it can be stored electronically with the aid of a computer in operation. Databases are ordinarily designed to store large tracts of information that can be accessed with ease, sifted through, and manipulated with speed and efficiency by multiple users in a single go. 

Blockchains stand out among databases as they store or collect information in groups collectively known as blocks. Each of these blocks has a given storage capacity in place and once it reaches its limit, the block is added to another block that is already filled via a chain process thereby giving rise to a “blockchain”.

While a blockchain can house a wide variety of forms of information, it has most popularly been used as a ledger such that transactions can be stored. One of the most well-known users of blockchain technology is the cryptocurrency Bitcoin which serves as the most valuable cryptocurrency presently available.

The Tie that Binds Bitcoin to Cryptocurrency

Serving as a form of decentralized currency, Bitcoin allows its users to conduct transactions without making use of an intermediary in the form of a central bank or an administrator. Blockchain makes each of these transactions possible and protects these transactions from being forged or a Bitcoin from being double-spent. What makes cryptocurrencies stand out when set against the prevailing forms of physical currency is the fact that they are for the most part not issued by a central authority. This means that the currency as a result is objectively immune to succumbing to any interference or manipulative tactics employed by a government.

Transforming the Blockchain Fin-Tech Hype into Reality

Identifying the Gap that Persists -  In order for greater transparency and financial inclusion to persist, blockchain incorporated into the financial technology arena requires basic infrastructure to be honed towards making it a possibility. At the moment, there exist gaps in accessibility owed to a lack of access to financing opportunities. Although billions of dollars have been invested in and funnelled towards enhancing blockchain concepts, they have yet to become mainstream. 

The Need for Infrastructure - In order for this to occur, basic infrastructure needs to be set in place as it is currently lacking and hinders growth opportunities and the possibility to generate new jobs. Once basic infrastructure exists and is enhanced, blockchain within the financial technology sector can be better channelled towards solving problems that presently persist. These problems deal with a lack of transparency and inequitable access to financing opportunities including to those operating as small and medium-sized enterprises.

Financial Technology is Needed - Basic infrastructure must be developed prior to financial technology being able to advance such that it can provide greater transparency and financial inclusivity. Financial technology is of utmost importance and needs to gear itself towards not just reducing costs but also needs to make transparency and performance-oriented rigour be carried forth with greater levels of efficiency and reliability.

Making Financial Institutions More Amenable - Despite the fact that small and medium-sized enterprises might require fewer funds, financial institutions are ordinarily apprehensive of having to deal with them unless they can do so with efficiency and in a reliable manner wherein anti-money laundering and KYC risks pertaining to transparency and performance are in check.

Conclusion –

By enhancing the supply chain and digitizing it with a greater speed and by incorporating greater levels of interoperability, blockchain in the financial technology sector can reach greater heights and be even more transformative. Legal and regulatory challenges interspersed with the absence of standards presently stand in the way of progress.

References – 

https://www.investopedia.com/terms/b/blockchain.asp

https://blogs.adb.org/blog/how-turn-blockchain-fintech-hype-reality

As Japan and global athletes gear up to compete in the postponed Tokyo Olympics that is finally going to take place amidst a raging pandemic, the buzz around the impact of the Olympics has only risen to prominence. Olympic Games is a premier sporting game that draws over a resounding 10,000 athletes who represent 204 countries, compete in 300 individual events across 28 different sports, with over a billion audience glued to the broadcasting channels. Competing in the Olympics is celebrated as the global pride that brings global citizens together.

The quadrennial Games have evolved over the years and have raised major concerns among economists on their both short and long-term impact. Overrun budget of the Sochi Winter Games, 2018 to the disastrous debt that left Rio De Janeiro to bare bones from the Summer Olympics of 2016, are some of the most glaring examples of the economic downfalls of hosting an Olympic game. Besides, the raging pandemic has only added fuel to the burning question - is hosting Olympic games feasible anymore? A little deep-dive would open the doors for massive conversations around the stealthy economics that runs the Olympics from start to finish.

The Cost of Hosting the Olympic Games

IOC demands bidding cities to first invest large sums of money in evaluating, planning, preparing, and submitting a proposal to IOC. For the 2016 bid, Tokyo spent over $150 million to win, and they still failed to secure the bid that went to Rio. However, Tokyo was relentless and again invested an additional 70 million to secure the 2020 bid while Toronto backed away as they could not afford the $60 million required to make for the 2024 bid. Once selected the host cities have around seven years to a decade to prepare. The host city is bestowed with the responsibility to shoulder the overall cost of organizing the mega event, with little to no help from the International Olympic Committee (IOC). Historically, till the twentieth century, most of the host cities were part of the rich, developed nation only with few exceptions like Mexico City, Moscow, and Seoul—hosts of 1968, 1980, and 1988 Summer Games, respectively. In 1984, Los Angeles secured the bid to host the Olympics and was wildly successful as the organizers made profits that were otherwise unheard of. With the 1984 Los Angeles success, more developing countries took interest with the hope to yield fruits of development and profits. IOC recognized the interest and started encouraging bids from developing countries—2008 Beijing Summer Games who will also host the Winter Olympics in 2022. As host cities gear up to arrange, they specifically need to overlook three major categories: general infrastructure that includes transportation and huge a Olympic Village to accommodate athletes, coaches, fans, and tourists; specific sports infrastructure like track, football stadiums, shooting range, etc., for competition venues; and operational costs, that includes security, general administration, as well as the opening and closing Olympic ceremony. While it is increasingly easier for a high-income city to build state-of-the-art sports facilities, not every developing nation is equipped to handle the cost.

Perplexed Numbers

IOC requires the hosting cities to build over 40,000 rooms for accommodation, so much so that Rio de Janeiro had to build an extra 15,000 hotel rooms to keep up with the influx. The infrastructure costs can range from $5 billion to over $50 billion. These rooms in Rio were later meant to be sold as luxurious apartments to the public but they fell flat and are now lying idle and vacant. Another problematic addition is overtly known as white elephants or expensive facilities which have limited to almost negligible post-Olympics use. Beijing’s “Bird’s Nest” stadium was built for $460 million and requires over $10 million every year to maintain and remains mostly unused. Similarly, most of the facilities built for the 2004 Athens Olympics contributed immensely to the Greek debt crisis. It also took Montreal until 2006 to pay the debt from the 1976 Games. Besides, security also plays a major concern as the Olympics have long been the target for terrorists. After the fatal attacks in both Munich in 1972 and Atlanta in 1996, investing in security was a must. It was furthered by the post-September 11, 2001, era where security costs saw an exponential rise.

Perplexed Numbers

IOC also needs the host cities to upgrade or construct new roads, train lines, subways, and airports. Most of Beijing’s 2008 budget of $45 billion went into building rail, roads, and airports. Often than ever, the Olympic track is incompatible with modern soccer stadiums as there’s an undesirably large separation between the crowd and the playing field. The Boston city failed to bid for the 2024 Summer Games as the proposed bill to build an entirely new stadium for the track and field event stood at a whopping $400 million dollars. This was despite Boston having over four large existing outdoor sports stadiums!

Therefore, it’s quite impossible to paint an accurate financial accounting of Olympic expenditures in various cities as multiple reasons can add up to its cost. Right now, the Tokyo Olympic authorities have spent millions of dollars to maintain the facilities and keep them in proper conditions. The budget has already risen by 22% until the end of 2020. And the pandemic, vaccine shortage have only added more to the Tokyo authorities’ dismay. The implicit costs have forced host city bidders to back out, as more countries become aware of the immediate downfalls of hosting Olympic games.

How Do the Benefits Stand When Compared to the Costs?

Most of the recent games have overrun and have pushed the cities to undergo debt that has taken years to pay back. It was the 1984 Olympics in Los Angeles that remained profitable as they were in a position to negotiate with the IOC and relied heavily on the already existing sporting infrastructure. The profits incurred attracted other cities to competitive bids, but the cost of hosting only skyrocketed in the next few years, and the revenue was pushed down to just a fraction of the total expenditure. While Beijing’s 2008 Summer Olympics generated $3.6 billion in revenue, it was just 1/10th when compared to the overall budget that went over $40 billion in costs. Similarly, the 2012 London Summer Games generated $5.2 billion in revenue but fell flat to the budget of $18 billion in costs. Furthermore, to add to the woes of the hosting nation, the IOC keeps the largest chunk of the money generated by the broadcasts or games.

Although many argue, such mega-events boost economic output, that's mostly not the case. While Sydney spent $250 million in 2000, Athens spent over four times its amount of $1.5 billion in 2004, and that budget has only risen. Countries have invested massive sums to create the infrastructure demanded by IOC. The costs have spiraled and overrun by a huge margin. It went to over $45 billion for the Beijing Summer Games in 2008, and over $50 billion for the Winter Games in Sochi, in 2014, and in more recent times over $20.1 billion for Rio de Janeiro in 2016.

These extra costs have led to renewed skepticism, with a large number of cities withdrawn their bids over cost concerns. Both Oslo and Stockholm backed out of their 2022 bids upon realizing the huge costs. Similarly, Boston also withdrew from consideration for the 2024 Games. In the end, as most finalists i.e., Budapest, Hamburg, and Rome, also withdrew, it was upon IOC to decide their future. In an unprecedented move, the IOC played a smart move and chose the 2024 and 2028 venues simultaneously in 2017, by rewarding Paris and Los Angeles for hosting.

To Wrap Up,

The constant overruns and cities looming into debt have forced most economists to come to a consensus that IOC needs to add reforms and favor new ideas. From the IOC bidding process that encourages unnecessary spending, to the corruption allegations, IOC is riddled with issues that need to be addressed soon. Besides, as the global world moves towards a new sustainable direction, IOC has introduced IOC 2020+5 reforms, that not only foster’s sustainable Olympic Games but also looks into diversity, strengthen safe sport and the protection of clean athletes along with providing the long-needed respite to the host cities or regions. However, the world is rethinking and providing innovative ideas and one of such teams is the Germans who are introducing RHEIN RHUR city that plans to spread the games over 13 different cities which are inner connected and would also fit into the sustainable agenda put forward by IOC. This approach would not only improve outcomes but also breathe in life to the otherwise lost proposition of the great OLYMPICS.

Overview

Trade finance makes it possible for importers, exporters, and companies at large to carry out a wide variety of business transactions with ease. Trade financing is of such vital importance that it presently accounts for 90 percent of global trade. The onset of the Coronavirus pandemic has slowed down the pace of trade transactions taking place across the globe. Read on to understand all that trade financing entails and how its growth curve might alter owing to the pandemic.

Establishing an Understanding of Trade Finance and all that it Entails

Trade financing is a broad term used to capture within its sphere a number of financial products, features, and implements that an ever-expanding array of companies make use of such that they can carry out their international trade and commerce requirements with ease. Trade financing stands out today as a viable means of conducting trade due to the fact that it adds to the efficiency with which companies including those that import, and export commodities conduct their transactions. It is important to recognize that the breadth of all that trade finance covers is vast which means that the financial tools that companies and banks can take advantage of for their trade to be conducted is vast. 

Third-party governance of each trade carried out under trade financing is the magic ingredient that allows for the smooth functioning of trade. What makes the presence of a third party paramount is the fact that they help mitigate the risks associated with payments and supply that either one of the parties involved in buying or supplying the commodity in question could fall prey to. 

Those that partake in trade finance include but aren’t limited to service providers and insurers, importers and exporters, export credit agencies, companies that focus on offering trade finance services, and banks in addition to several others.

Varied businesses such as the ones mentioned above take advantage of trade financing as it provides them with a number of benefits some of which have been explored below. 

Currency protection is a possibility as upfront risks associated with currency exchanges are mitigated.

Businesses avail of working capital such that they can permit payment extensions from their retailers. This consequently implies that financing in the form of export, import, and vendor is a possibility.

Short-term cash flow issues are no longer troublesome as trade financing takes into account and resolves these.

Trade Finance’s Future Post the Pandemic

After having explored the benefits of trade financing, its viability is impressive. The issue that now persists is that the pandemic has resulted in varied lockdowns being imposed. This is owed to the fact that the virus is airborne and social distancing is a must. Lockdowns, however, have showcased that commerce activities, for the most part, are suspended and the capacity and productivity that an economy might have in place weaken. Global trade volumes too have seen a decline over the past year because varied countries have tightened the border regulations they have in place.

That being said India has just started the process of removing the lockdowns it had imposed due to the 2^nd wave. Moreover, a number of places in the western world are opening up and removing the kind of restrictive lockdowns they had in place.

The coronavirus pandemic has in fact highlighted the need for trade to be supported as it not only allows for a channel via which medical supplies can be traded but can also help boost the economies of varied nations. 

While several countries have in fact tightened control on their physical borders, this might not work for them in the long run. This is because there exist barely a few countries that are entirely self-sufficient and capable of sustaining themselves and their economies on their own in the long run. In order to be sustainable over a long time frame, countries need to work on opening themselves up to trade such that goods and services they need can still enter via their borders. Moreover, by exporting their products they can improve the state their fiscal standing.

Governments the world over have provided monetary and fiscal policies aimed at easing up the burden faced by MSMEs and while they have provided some relief, insolvencies are anticipated to rise. MSMEs are expected to be shuffled into overdrive in a bid to gain immediate access to working capital finance.

While 2020 saw a demand for finance such that these companies could survive, 2021 is witnessing companies using this financing to add to their working capital requirements such that they can grow and recover.

Certain realms of manufacturing and distribution have benefitted from the pandemic and the sale of products online has skyrocketed owing to work-from-home requirements.

The world Bank believes that there exists a finance gap amounting to USD 5.2 trillion focused primarily in emerging markets where the accessibility to working finance capital has been scarce.

Conclusion

Trade financing’s growth curve following the pandemic is realistically unlike to remain in a sluggish state owing to the fact that there exist a wide number of essential services and benefits made possible with it. These can help boost economies in a major way which is the need of the hour.

References-

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing

Business loans provide borrowers the opportunity to avail lump sum cash or a line of credit to continue to operate and expand their business. These loans are provided based on the understanding that borrowers will pay them back along with the interest. 

This capital is of particular importance to small businesses who can use it to invest in new equipment and supplies, pay their employees or manage the flow of cash until their customers pay them their dues. Here are the types of business loans available and what happens when a borrower fails to pay them back. 

Types of Business Loans in India

Popular business loans available for borrowers include the following:

Term Loan 

Term loans are required to be paid at regular intervals over a set period of time. Accessible in the form of secured or unsecured loans, their capital limit is based on a given business’s credit history. The repayment tenure of term loans determines whether they are classified as short term or long-term loans. 

Short-term loans refer to those loans that last a period of 12 months and tend to have higher interest rates to offset their short repayment period whereas long-term loans constitute a period that can last up to 10 years. 

Once approved for a term loan, lenders provide businesses with capital in a lump sum amount. Businesses normally accrue these debts in order to purchase fixed assets including equipment or investing in a building.

Working Capital Loan 

Businesses often avail of a working capital loan in order to finance their daily operations. Rather than being used to fund long-term assets or investments, working capital loans are used to finance a given business’s short-term operational needs. 

As a collateral-free loan, it doesn’t require lenders to provide any collateral or security with the issuer. They can be used to tide a business over during the off-season and are taken advantage of by businesses that operate with cyclical sales. 

In comparison to long-term loans, working capital loans are provided with a comparatively higher interest rate. Lenders determine the limit of the loans they offer and said capital can only be spent on specified business-related expenses.

Overdraft Loan

Business accounts can take advantage of overdrafts offered by most lending institutions in the event that their accounts have a balance equivalent to zero. Overdrafts thereby allow for businesses to continue to withdraw money even when their accounts have no funds or, when the amount they wish to withdraw surpasses the amount they presently have. 

The interest rate applies only to what is utilized based on the sanctioned limit. Overdraft limits are determined by lenders once they’ve analyzed a given business’s cash flow, their repayment history and the fiscal relationship between them and the business. 

Startup Loans 

The success and sudden expansion of startup ventures within India has made it possible for any given startup to consider loans that have been designed keeping in mind their fiscal needs. 

Since startups are essentially businesses at their earliest stage, entrepreneurs behind such operations might not be able to provide lending institutions with a significant credit history. In such instances, lenders take into account an entrepreneur’s personal credit history as well. 

They are also required to provide proof of their business existing, as well as registration details. Varied financial considerations are taken into account when lenders determine the capital they will lend along with the tenure and interest rate applicable. 

Equipment Financing 

This is largely popular with manufacturing businesses or large enterprises that often need to purchase expensive equipment or upgrade their existing machines. 

Business owners are eligible for tax benefits if they avail such loans. Due to the specific nature these loans are allocated for, the equipment itself is treated as collateral along with another security. 

Interest rates for such loans tend to be lower than those charged on term deposits. The interest rates, the loaned amount and repayment plans largely depend on the lender in question. 

Government-Funded Loans and Schemes 

The Indian Government provides an array of loan schemes that target varied entrepreneurs based on their lending requirements, business plans and business size. There exist special loans available to female entrepreneurs as well as those targeting micro, small and medium enterprises (MSMEs). 

These loans are available via a number of financial channels including private and public sector banks, regional rural banks, micro and small finance banks as well as non-banking financial companies. 

Loan schemes offered by the Indian government include, but aren’t limited to, Standup India, Startup India, MSME in 59 minutes and Pradhan Mantri Mudra Yojana. 

Letter of Credit 

Serving as a key factor in international trade, letters of credit are often used by businesses that deal with work overseas. 

They serve as funding guarantees provided by lending institutions on behalf of their borrowers that are made available to foreign entities. 

Letters of credit can be obtained from banks for a fee. They act as an assurance that a buyer’s payment to a seller will be received within the requested time frame and for the full amount. 

Merchant Cash Advances 

Such loans comprise cash advances against future sales. They are popular among businesses that derive a large amount of their revenue from credit card sales. These include restaurants, retail stores and medical offices. Borrowers pay off their debt as and when they sell their wares to customers. 

In order to prevent themselves from experiencing a short-term deficit in their cash flow, small to medium enterprises often avail of these loans. As businesses repay their debt as per their daily sales, the amount deducted from sales each day depends on how many sales occurred. 

Invoice Financing 

Similar to merchant cash advances, these loans provide businesses with fast access to cash. However, they are often availed of at lower interest rates as the loans are set against existing invoices rather than projected sales. 

They are largely popular with small businesses that experience a time lag between providing invoices and receiving payments for the same. Lenders provide funds against amounts raised in the borrower’s invoices. Debts are cleared by businesses once they receive their invoice payments as per predetermined tenure and interest rates. 

In addition to the Indian federal government and private banks that provide business loans, a number of online lenders offer business loans. In the case of nimbly accessible loans, defaulting on recovery has its own consequences.

Consequences of Defaulting on a Business Loan 

Varied scenarios including a drop in sales, overspending and miscalculations can all lead to businesses defaulting i.e., being unable to repay debts including the interest or principal on a loan. Defaults occur when borrowers are unable to stand by their debt obligations and either stop making recurring payments, skip payments or stop making any payments altogether. 

The consequences incurred for defaulting on a business loan depend on whether they were secured or unsecured. 

When Secured Loans Are Defaulted: In the case of the secured loans, foreclosures allow lenders the right to gain control of assets provided as collateral under the loan agreement. This collateral is often auctioned in order to account for the lender’s losses. 

When Unsecured Loans Are Defaulted: In the event that an unsecured loan was defaulted, business owners are charged with a late fee. Lenders may also require personal guarantees or may gain control of a business’s assets. Failure to comply with these requests can result in lenders filing lawsuits against businesses that default. The court then determines how the loan is to be recovered. In the event that the loan continues to remain unpaid, the business in question may have to file for bankruptcy.

Repercussions of defaulting business loans are visible in credit scores. Lenders report failure to pay loan instalments to credit agencies each time business owners are found lacking. This can lead to a drop in credit scores, which in turn can imperil the possibility of future loans being approved.

Inverse to a plummeting credit score is a consequent soaring interest rate based on the stipulated business loan agreement. If the interest rate remains the same, borrowers are subject to exorbitantly priced late fees. This directly affects a borrower’s existing loan repayment and also contributes to their ability to avail of loans in the future. 

Ways to Avoid Defaulting on a Business Loan

In order to avoid defaulting a business loan, entrepreneurs and business owners are advised to observe the following. 

Maintain Reserves: All businesses can incur volatile market conditions. In order to withstand these, maintaining a sufficient business bank account balance is advisable. This balance should ideally include three months’ worth of loan repayments that shouldn’t be allocated towards or spent on anything else.

Diligence About Due Dates: Business loan borrowers must be well aware of dates on which each of their repayments are due such that they are fiscally prepared to pay them. While a sole missed repayment might not directly result in defaulting, it can accrue high fees.

Refinancing: Several lenders allow business loan borrowers to refinance their existing loan by providing them with new interest rates, payment schedules or altering other previously agreed upon terms. 

It is particularly appealing to new businesses as short-term loans often end up hindering the very momentum they initially provide. Numerous lenders are therefore ready to refinance these loans which cover longer periods and ask for smaller instalments. Refinancing is not a solution and only a precautionary measure to remain in the clear.

Borrowers who feel they may not be able to pay upcoming instalments with ease must relay these sentiments to their lenders. This proactive behavior could be rewarded with extended terms. 

Reschedule Debt: In the case of excessive expenses incurred by a business, business owners can reschedule their debt i.e., they can restructure their terms of repayment. This is done by extending the time period required to repay a loan and by increasing the number of times said payments are to be paid. While this has the potential to reduce credit scores, it is preferred to default.

Prioritize Debt Repayment: Repeated loan payments must be given the most priority as they cannot be shirked. All business expenses must be viewed second to it. 

In the event that a business owner cannot avoid defaulting, they must seek legal counsel in order to stay afloat. Borrowers must only borrow what they need and not get ahead of themselves. 

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

The fintech company is currently disbursing close to Rs 1,500 crore a month

CredAble is into supply-chain finance by providing liquidity programmes. It seeks to exponentially increase working capital flows by intermediating between corporates, vendors and banks. The fintech company is currently disbursing close to Rs 1,500 crore a month.

It hopes to top Rs 18,000 crore this calendar year, and hit Rs 20,000-25,000 crore in FY22. NIRAV CHOKSI, co-founder and chief executive officer, spoke to Raghu Mohan. Edited excerpts: How has the working capital world been during the pandemic? It was easily available to large corporates, the mid-market segment, and to ...

This news is published as it is from the publisher’s website. Please subscribe to www.business-standard.com to read the complete article.

Introduction 

The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those who avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality

The Asian Development Bank has made it clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women not only need to create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion-

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

References-

https://www.gtreview.com/magazine/volume-18-issue-3/making-case-gender-linked-trade-finance/

https://www.thehindubusinessline.com/money-and-banking/digital-technology-can-help-bridge-trade-finance-gap-says-adb/article29440780.ece

Overview-

Trade finance makes it possible for importers, exporters, and companies at large to carry out a wide variety of business transactions with ease. Trade financing is of such vital importance that it presently accounts for 90 percent of global trade. The onset of the Coronavirus pandemic has slowed down the pace of trade transactions taking place across the globe. Read on to understand all that trade financing entails and how its growth curve might alter owing to the pandemic.

Establishing an Understanding of Trade Finance and all that it Entails –

Trade financing is a broad term used to capture within its sphere a number of financial products, features, and implements that an ever-expanding array of companies make use of such that they can carry out their international trade and commerce requirements with ease. Trade financing stands out today as a viable means of conducting trade due to the fact that it adds to the efficiency with which companies including those that import, and export commodities conduct their transactions. It is important to recognize that the breadth of all that trade finance covers is vast which means that the financial tools that companies and banks can take advantage of for their trade to be conducted is vast. 

Third-party governance of each trade carried out under trade financing is the magic ingredient that allows for the smooth functioning of trade. What makes the presence of a third party paramount is the fact that they help mitigate the risks associated with payments and supply that either one of the parties involved in buying or supplying the commodity in question could fall prey to. 

Those that partake in trade finance include but aren’t limited to service providers and insurers, importers and exporters, export credit agencies, companies that focus on offering trade finance services, and banks in addition to several others.

Varied businesses such as the ones mentioned above take advantage of trade financing as it provides them with a number of benefits some of which have been explored below. 

Currency protection is a possibility as upfront risks associated with currency exchanges are mitigated.

Businesses avail of working capital such that they can permit payment extensions from their retailers. This consequently implies that financing in the form of export, import, and vendor is a possibility.

Short-term cash flow issues are no longer troublesome as trade financing takes into account and resolves these.

Trade Finance’s Future Post the Pandemic –

After having explored the benefits of trade financing, its viability is impressive. The issue that now persists is that the pandemic has resulted in varied lockdowns being imposed. This is owed to the fact that the virus is airborne and social distancing is a must. Lockdowns, however, have showcased that commerce activities, for the most part, are suspended and the capacity and productivity that an economy might have in place weaken. Global trade volumes too have seen a decline over the past year because varied countries have tightened the border regulations they have in place.

That being said India has just started the process of removing the lockdowns it had imposed due to the 2^nd wave. Moreover, a number of places in the western world are opening up and removing the kind of restrictive lockdowns they had in place.

The coronavirus pandemic has in fact highlighted the need for trade to be supported as it not only allows for a channel via which medical supplies can be traded but can also help boost the economies of varied nations. 

While several countries have in fact tightened control on their physical borders, this might not work for them in the long run. This is because there exist barely a few countries that are entirely self-sufficient and capable of sustaining themselves and their economies on their own in the long run. In order to be sustainable over a long time frame, countries need to work on opening themselves up to trade such that goods and services they need can still enter via their borders. Moreover, by exporting their products they can improve the state their fiscal standing.

Governments the world over have provided monetary and fiscal policies aimed at easing up the burden faced by MSMEs and while they have provided some relief, insolvencies are anticipated to rise. MSMEs are expected to be shuffled into overdrive in a bid to gain immediate access to working capital finance.

While 2020 saw a demand for finance such that these companies could survive, 2021 is witnessing companies using this financing to add to their working capital requirements such that they can grow and recover.

Certain realms of manufacturing and distribution have benefitted from the pandemic and the sale of products online has skyrocketed owing to work-from-home requirements.

The world Bank believes that there exists a finance gap amounting to USD 5.2 trillion focused primarily in emerging markets where the accessibility to working finance capital has been scarce.

Conclusion –

Trade financing’s growth curve following the pandemic is realistically unlike to remain in a sluggish state owing to the fact that there exist a wide number of essential services and benefits made possible with it. These can help boost economies in a major way which is the need of the hour.

References – 

https://www.investopedia.com/terms/b/blockchain.asp

https://blogs.adb.org/blog/how-turn-blockchain-fintech-hype-reality

Overview-

The past decade has witnessed the frequency with which the term “blockchain” has been used. Its usage is even more pronounced when considering the banking, investing, or cryptocurrency sectors. Read on to understand what it is and how the hype surrounding it in the realm of financial technology can materialize in real-time.

Understanding the Realm of Blockchain

Blockchain refers to a kind of database. This database functions to collect information such that it can be stored electronically with the aid of a computer in operation. Databases are ordinarily designed to store large tracts of information that can be accessed with ease, sifted through, and manipulated with speed and efficiency by multiple users in a single go. 

Blockchains stand out among databases as they store or collect information in groups collectively known as blocks. Each of these blocks has a given storage capacity in place and once it reaches its limit, the block is added to another block that is already filled via a chain process thereby giving rise to a “blockchain”.

While a blockchain can house a wide variety of forms of information, it has most popularly been used as a ledger such that transactions can be stored. One of the most well-known users of blockchain technology is the cryptocurrency Bitcoin which serves as the most valuable cryptocurrency presently available.

The Tie that Binds Bitcoin to Cryptocurrency

Serving as a form of decentralized currency, Bitcoin allows its users to conduct transactions without making use of an intermediary in the form of a central bank or an administrator. Blockchain makes each of these transactions possible and protects these transactions from being forged or a Bitcoin from being double-spent. What makes cryptocurrencies stand out when set against the prevailing forms of physical currency is the fact that they are for the most part not issued by a central authority. This means that the currency as a result is objectively immune to succumbing to any interference or manipulative tactics employed by a government.

Transforming the Blockchain Fin-Tech Hype into Reality

Identifying the Gap that Persists -  In order for greater transparency and financial inclusion to persist, blockchain incorporated into the financial technology arena requires basic infrastructure to be honed towards making it a possibility. At the moment, there exist gaps in accessibility owed to a lack of access to financing opportunities. Although billions of dollars have been invested in and funneled towards enhancing blockchain concepts, they have yet to become mainstream. 

The Need for Infrastructure - In order for this to occur, basic infrastructure needs to be set in place as it is currently lacking and hinders growth opportunities and the possibility to generate new jobs. Once basic infrastructure exists and is enhanced, blockchain within the financial technology sector can be better channeled towards solving problems that presently persist. These problems deal with a lack of transparency and inequitable access to financing opportunities including to those operating as small and medium-sized enterprises.

Financial Technology is Needed - Basic infrastructure must be developed prior to financial technology being able to advance such that it can provide greater transparency and financial inclusivity. Financial technology is of utmost importance and needs to gear itself towards not just reducing costs but also needs to make transparency and performance-oriented rigor be carried forth with greater levels of efficiency and reliability.

Making Financial Institutions More Amenable - Despite the fact that small and medium-sized enterprises might require fewer funds, financial institutions are ordinarily apprehensive of having to deal with them unless they can do so with efficiency and in a reliable manner wherein anti-money laundering and KYC risks pertaining to transparency and performance are in check.

Conclusion –

By enhancing the supply chain and digitizing it with a greater speed and by incorporating greater levels of interoperability, blockchain in the financial technology sector can reach greater heights and be even more transformative. Legal and regulatory challenges interspersed with the absence of standards presently stand in the way of progress.

References – 

https://www.investopedia.com/terms/b/blockchain.asp

https://blogs.adb.org/blog/how-turn-blockchain-fintech-hype-reality

Overview-

The past decade has witnessed the frequency with which the term “blockchain” has been used. Its usage is even more pronounced when considering the banking, investing, or cryptocurrency sectors. Read on to understand what it is and how the hype surrounding it in the realm of financial technology can materialize in real-time.

Understanding the Realm of Blockchain

Blockchain refers to a kind of database. This database functions to collect information such that it can be stored electronically with the aid of a computer in operation. Databases are ordinarily designed to store large tracts of information that can be accessed with ease, sifted through, and manipulated with speed and efficiency by multiple users in a single go. 

Blockchains stand out among databases as they store or collect information in groups collectively known as blocks. Each of these blocks has a given storage capacity in place and once it reaches its limit, the block is added to another block that is already filled via a chain process thereby giving rise to a “blockchain”.

While a blockchain can house a wide variety of forms of information, it has most popularly been used as a ledger such that transactions can be stored. One of the most well-known users of blockchain technology is the cryptocurrency Bitcoin which serves as the most valuable cryptocurrency presently available.

The Tie that Binds Bitcoin to Cryptocurrency

Serving as a form of decentralized currency, Bitcoin allows its users to conduct transactions without making use of an intermediary in the form of a central bank or an administrator. Blockchain makes each of these transactions possible and protects these transactions from being forged or a Bitcoin from being double-spent. What makes cryptocurrencies stand out when set against the prevailing forms of physical currency is the fact that they are for the most part not issued by a central authority. This means that the currency as a result is objectively immune to succumbing to any interference or manipulative tactics employed by a government.

Transforming the Blockchain Fin-Tech Hype into Reality

Identifying the Gap that Persists -  In order for greater transparency and financial inclusion to persist, blockchain incorporated into the financial technology arena requires basic infrastructure to be honed towards making it a possibility. At the moment, there exist gaps in accessibility owed to a lack of access to financing opportunities. Although billions of dollars have been invested in and funneled towards enhancing blockchain concepts, they have yet to become mainstream. 

The Need for Infrastructure - In order for this to occur, basic infrastructure needs to be set in place as it is currently lacking and hinders growth opportunities and the possibility to generate new jobs. Once basic infrastructure exists and is enhanced, blockchain within the financial technology sector can be better channeled towards solving problems that presently persist. These problems deal with a lack of transparency and inequitable access to financing opportunities including to those operating as small and medium-sized enterprises.

Financial Technology is Needed - Basic infrastructure must be developed prior to financial technology being able to advance such that it can provide greater transparency and financial inclusivity. Financial technology is of utmost importance and needs to gear itself towards not just reducing costs but also needs to make transparency and performance-oriented rigor be carried forth with greater levels of efficiency and reliability.

Making Financial Institutions More Amenable - Despite the fact that small and medium-sized enterprises might require fewer funds, financial institutions are ordinarily apprehensive of having to deal with them unless they can do so with efficiency and in a reliable manner wherein anti-money laundering and KYC risks pertaining to transparency and performance are in check.

Conclusion –

By enhancing the supply chain and digitizing it with a greater speed and by incorporating greater levels of interoperability, blockchain in the financial technology sector can reach greater heights and be even more transformative. Legal and regulatory challenges interspersed with the absence of standards presently stand in the way of progress.

References – 

https://www.investopedia.com/terms/b/blockchain.asp

https://blogs.adb.org/blog/how-turn-blockchain-fintech-hype-reality

The fintech company is currently disbursing close to Rs 1,500 crore a month

CredAble is into supply-chain finance by providing liquidity programmes. It seeks to exponentially increase working capital flows by intermediating between corporates, vendors and banks. The fintech company is currently disbursing close to Rs 1,500 crore a month.

It hopes to top Rs 18,000 crore this calendar year, and hit Rs 20,000-25,000 crore in FY22. NIRAV CHOKSI, co-founder and chief executive officer, spoke to Raghu Mohan. Edited excerpts: How has the working capital world been during the pandemic? It was easily available to large corporates, the mid-market segment, and to ...

This news is published as it is from the publisher’s website. Please subscribe to www.business-standard.com to read the complete article.

The fintech company is currently disbursing close to Rs 1,500 crore a month

CredAble is into supply-chain finance by providing liquidity programmes. It seeks to exponentially increase working capital flows by intermediating between corporates, vendors and banks. The fintech company is currently disbursing close to Rs 1,500 crore a month.

It hopes to top Rs 18,000 crore this calendar year, and hit Rs 20,000-25,000 crore in FY22. NIRAV CHOKSI, co-founder and chief executive officer, spoke to Raghu Mohan. Edited excerpts: How has the working capital world been during the pandemic? It was easily available to large corporates, the mid-market segment, and to ...

This news is published as it is from the publisher’s website. Please subscribe to www.business-standard.com to read the complete article.

Business loans provide borrowers the opportunity to avail lump sum cash or a line of credit to continue to operate and expand their business. These loans are provided based on the understanding that borrowers will pay them back along with the interest. 

This capital is of particular importance to small businesses who can use it to invest in new equipment and supplies, pay their employees or manage the flow of cash until their customers pay them their dues. Here are the types of business loans available and what happens when a borrower fails to pay them back. 

Types of Business Loans in India

Popular business loans available for borrowers include the following:

Term Loan 

Term loans are required to be paid at regular intervals over a set period of time. Accessible in the form of secured or unsecured loans, their capital limit is based on a given business’s credit history. The repayment tenure of term loans determines whether they are classified as short term or long-term loans. 

Short-term loans refer to those loans that last a period of 12 months and tend to have higher interest rates to offset their short repayment period whereas long-term loans constitute a period that can last up to 10 years. 

Once approved for a term loan, lenders provide businesses with capital in a lump sum amount. Businesses normally accrue these debts in order to purchase fixed assets including equipment or investing in a building.

Working Capital Loan 

Businesses often avail of a working capital loan in order to finance their daily operations. Rather than being used to fund long-term assets or investments, working capital loans are used to finance a given business’s short-term operational needs. 

As a collateral-free loan, it doesn’t require lenders to provide any collateral or security with the issuer. They can be used to tide a business over during the off-season and are taken advantage of by businesses that operate with cyclical sales. 

In comparison to long-term loans, working capital loans are provided with a comparatively higher interest rate. Lenders determine the limit of the loans they offer and said capital can only be spent on specified business-related expenses.

Overdraft Loan

Business accounts can take advantage of overdrafts offered by most lending institutions in the event that their accounts have a balance equivalent to zero. Overdrafts thereby allow for businesses to continue to withdraw money even when their accounts have no funds or, when the amount they wish to withdraw surpasses the amount they presently have. 

The interest rate applies only to what is utilized based on the sanctioned limit. Overdraft limits are determined by lenders once they’ve analyzed a given business’s cash flow, their repayment history and the fiscal relationship between them and the business. 

Startup Loans 

The success and sudden expansion of startup ventures within India has made it possible for any given startup to consider loans that have been designed keeping in mind their fiscal needs. 

Since startups are essentially businesses at their earliest stage, entrepreneurs behind such operations might not be able to provide lending institutions with a significant credit history. In such instances, lenders take into account an entrepreneur’s personal credit history as well. 

They are also required to provide proof of their business existing, as well as registration details. Varied financial considerations are taken into account when lenders determine the capital they will lend along with the tenure and interest rate applicable. 

Equipment Financing 

This is largely popular with manufacturing businesses or large enterprises that often need to purchase expensive equipment or upgrade their existing machines. 

Business owners are eligible for tax benefits if they avail such loans. Due to the specific nature these loans are allocated for, the equipment itself is treated as collateral along with another security. 

Interest rates for such loans tend to be lower than those charged on term deposits. The interest rates, the loaned amount and repayment plans largely depend on the lender in question. 

Government-Funded Loans and Schemes 

The Indian Government provides an array of loan schemes that target varied entrepreneurs based on their lending requirements, business plans and business size. There exist special loans available to female entrepreneurs as well as those targeting micro, small and medium enterprises (MSMEs). 

These loans are available via a number of financial channels including private and public sector banks, regional rural banks, micro and small finance banks as well as non-banking financial companies. 

Loan schemes offered by the Indian government include, but aren’t limited to, Standup India, Startup India, MSME in 59 minutes and Pradhan Mantri Mudra Yojana. 

Letter of Credit 

Serving as a key factor in international trade, letters of credit are often used by businesses that deal with work overseas. 

They serve as funding guarantees provided by lending institutions on behalf of their borrowers that are made available to foreign entities. 

Letters of credit can be obtained from banks for a fee. They act as an assurance that a buyer’s payment to a seller will be received within the requested time frame and for the full amount. 

Merchant Cash Advances 

Such loans comprise cash advances against future sales. They are popular among businesses that derive a large amount of their revenue from credit card sales. These include restaurants, retail stores and medical offices. Borrowers pay off their debt as and when they sell their wares to customers. 

In order to prevent themselves from experiencing a short-term deficit in their cash flow, small to medium enterprises often avail of these loans. As businesses repay their debt as per their daily sales, the amount deducted from sales each day depends on how many sales occurred. 

Invoice Financing 

Similar to merchant cash advances, these loans provide businesses with fast access to cash. However, they are often availed of at lower interest rates as the loans are set against existing invoices rather than projected sales. 

They are largely popular with small businesses that experience a time lag between providing invoices and receiving payments for the same. Lenders provide funds against amounts raised in the borrower’s invoices. Debts are cleared by businesses once they receive their invoice payments as per predetermined tenure and interest rates. 

In addition to the Indian federal government and private banks that provide business loans, a number of online lenders offer business loans. In the case of nimbly accessible loans, defaulting on recovery has its own consequences.

Consequences of Defaulting on a Business Loan 

Varied scenarios including a drop in sales, overspending and miscalculations can all lead to businesses defaulting i.e., being unable to repay debts including the interest or principal on a loan. Defaults occur when borrowers are unable to stand by their debt obligations and either stop making recurring payments, skip payments or stop making any payments altogether. 

The consequences incurred for defaulting on a business loan depend on whether they were secured or unsecured. 

When Secured Loans Are Defaulted: In the case of the secured loans, foreclosures allow lenders the right to gain control of assets provided as collateral under the loan agreement. This collateral is often auctioned in order to account for the lender’s losses. 

When Unsecured Loans Are Defaulted: In the event that an unsecured loan was defaulted, business owners are charged with a late fee. Lenders may also require personal guarantees or may gain control of a business’s assets. Failure to comply with these requests can result in lenders filing lawsuits against businesses that default. The court then determines how the loan is to be recovered. In the event that the loan continues to remain unpaid, the business in question may have to file for bankruptcy.

Repercussions of defaulting business loans are visible in credit scores. Lenders report failure to pay loan instalments to credit agencies each time business owners are found lacking. This can lead to a drop in credit scores, which in turn can imperil the possibility of future loans being approved.

Inverse to a plummeting credit score is a consequent soaring interest rate based on the stipulated business loan agreement. If the interest rate remains the same, borrowers are subject to exorbitantly priced late fees. This directly affects a borrower’s existing loan repayment and also contributes to their ability to avail of loans in the future. 

Ways to Avoid Defaulting on a Business Loan

In order to avoid defaulting a business loan, entrepreneurs and business owners are advised to observe the following. 

Maintain Reserves: All businesses can incur volatile market conditions. In order to withstand these, maintaining a sufficient business bank account balance is advisable. This balance should ideally include three months’ worth of loan repayments that shouldn’t be allocated towards or spent on anything else.

Diligence About Due Dates: Business loan borrowers must be well aware of dates on which each of their repayments are due such that they are fiscally prepared to pay them. While a sole missed repayment might not directly result in defaulting, it can accrue high fees.

Refinancing: Several lenders allow business loan borrowers to refinance their existing loan by providing them with new interest rates, payment schedules or altering other previously agreed upon terms. 

It is particularly appealing to new businesses as short-term loans often end up hindering the very momentum they initially provide. Numerous lenders are therefore ready to refinance these loans which cover longer periods and ask for smaller instalments. Refinancing is not a solution and only a precautionary measure to remain in the clear.

Borrowers who feel they may not be able to pay upcoming instalments with ease must relay these sentiments to their lenders. This proactive behavior could be rewarded with extended terms. 

Reschedule Debt: In the case of excessive expenses incurred by a business, business owners can reschedule their debt i.e., they can restructure their terms of repayment. This is done by extending the time period required to repay a loan and by increasing the number of times said payments are to be paid. While this has the potential to reduce credit scores, it is preferred to default.

Prioritize Debt Repayment: Repeated loan payments must be given the most priority as they cannot be shirked. All business expenses must be viewed second to it. 

In the event that a business owner cannot avoid defaulting, they must seek legal counsel in order to stay afloat. Borrowers must only borrow what they need and not get ahead of themselves. 

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by CredAble.

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform. Founded by Nirav Choksi and Ram Kewalramani, the goal of this fintech startup is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is Think Working capital... Think CredAble.

Since its inception in 2017, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution. CredAble aims to disburse in excess of USD 1 billion per month going to USD 2 billion per month.

StartupTalky interviewed the co-founders, Nirav Choksi & Ram Kewalramani to get insights on the Success Story and Growth Hacks of CredAble. Know all about CredAble funding, founders, business and revenue model, How it started, marketing strategies, and more.

CredAble - Company Highlights

About CredAble - Mission & Vision
CredAble - Industry Details
CredAble - Founders & Team
CredAble History - How it Started
CredAble - Products/Services Offered
CredAble - Name, Tagline and Logo
CredAble - Business Model & Revenue Model
Launch of CredAble
CredAble - Challenges Faced
CredAble - Marketing Strategies
CredAble - Funding and Investors
CredAble - Board & Advisory Board Members
CredAble - Competitors
Tools used by CredAble to run company
CredAble - Recognition and Achievements
CredAble - Future Plans
CredAble - FAQs

About CredAble - Mission & Vision

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

The goal is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is think Working capital... think CredAble.

CredAble’s vision is to create holistic financial inclusion that would triple the availability of working capital, wherein the ripple effect has a significant growth in India’s GDP.

The co-founders of CreAble highlight the Culture Statement of the company - "There are 6 Core Culture statements that we at CredAble completely align to and this is how we stay on our Mission"

1. We are Audaciously breaking boundaries

• Proposing ‘out of the box’ solutions to customers
• Solving big problems that matter

2. We are humbled

• By the partnership and support of our shareholders
• By the opportunity to make a difference in this world

3. We are Generous

• We give ourselves fully
• We share our knowledge and insights freely with all

4. We are enablers of Context to Content

• We are aware of ‘Why’ of ‘What’ we do every day
• Create a Powerful contextual relationship

5. We set the measure

• Set the benchmark of excellence in everything we do
• Highest standard of customer and employee satisfaction

6. We are responsible

• For fulfilling our purpose
• For transformation of our society and environment

CredAble - Industry Details  

CredAble is focused on enabling working capital for India Inc. Currently, there is a USD 75 billion working capital gap in India. Furthermore, there are approx. 75 million MSMEs of which only 16% have access to formal credit, thereby, creating a USD 350 billion credit gap.

The Covid 19 pandemic only exasperated the MSME sector, as major financial institutions such as banks started to reduce their MSME credit lines and diverted the same to large corporates, which further fueled the need to create financial inclusion for the MSME segment. With India’s current quarter-on-quarter GDP growth rate at 1.6% for FY 2021-22, of which the MSME contribution is approximately 30% will further fuel the requirement of working capital for India Inc.

Fintechs such as CredAble will become the backbone for working capital availability for India Inc going forward.

CredAble - Founders & Team

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

Nirav Choksi | Co-Founder & CEO, CredAble

He has been an entrepreneur for almost 25 + years and has incubated and scaled businesses raised debt and equity financing, and built multi-disciplinary global teams in the areas of technology, private equity, and international commodities. Nirav heads the Sales, FI Coverage, Tech & Human Capital functions at CredAble.

Prior to CredAble, Nirav co-founded and led Equentia Natural Resources Pte Ltd., a multi-commodity trading and structured finance company with offices in Singapore, Jakarta, Dubai, and Mumbai. ENR is amongst the top 5 importers of Indonesian Thermal Coal for the private sector in India with revenues in excess of $500 Million a year and trading volumes of over 10 Million MT. ENR also has a significant structured trade finance and debt arbitrage operation. Prior to that Nirav has founded several companies in the internet and technology space and has had 3 successful exits. He is an active early-stage investor in tech-enabled consumer-led ventures and has invested in over 25 opportunities. Nirav studied computer science and economics at the University of Michigan.

Ram Kewalramani | Co-Founder & Managing Director, CredAble

He has had a career spanning over 18 + years working in leadership positions. Ram has gained invaluable insight and expertise in the domains of Investment Banking, Marketing, Finance, and Operations. As an acknowledged veteran of the Employee Transportation industry, he brings valuable industry insights, experience, and connections to further the establishment of the vision behind CredAble. Ram heads the Fincon, Credit Risk & Risk Operations functions at CredAble.

Prior to founding CredAble, Ram spent 14 + years in investment banking and P&L leadership capacities. Previously, he was a shareholder and CEO of People Premier Logistics, a successful employee transportation business. Prior to becoming an entrepreneur, Ram was an investment banker with Centrum Capital and Grant Thornton.

Current Company Size, Work Culture & Hiring Funda -

The current headcount of CredAble is 112.

As mentioned earlier, CredAble values employees like the way it values its clients and strongly follow the below culture statements:

• We are Audaciously breaking boundaries
• We are humbled
• We are Generous
• We are enablers of Context to Content
• We set the measure
• We are responsible

At CredAble, the hiring process is efficiently streamlined to ensure to hire the right talent for the right job. They have detailed BEI interviews both at the Functional & HR interview evaluation stages.

CredAble History - How it Started

The founders in their previous avatar, have had a great deal of exposure to the working capital gap in India. Nirav, who comes with over 25 years of work experience across IT Services, Commodity trading, Trade Finance, was dealing with banks to create structured trade finance flows for his trading business. Ram, who comes with over 18 years of work experience, was the CEO of a large logistics business which required him to constantly focus on raising working capital, but always found it difficult given the traditional approach used by banks and NBFCs. This amalgamation of experience made both the founders believe that they were the most pertinent people to co-create programs that would enable working capital for India inc.

CredAble started its journey to enable working capital within the logistics sector. The product was split into two categories namely JIT financing and post invoice financing. This permutation & combination of the product reduced the cash-to-cash cycle of the logistics borrowers from an average of 110 days to under 24 hours! All of this was enabled through technology without any human intervention. Once this model was proven, these offerings were expanded to multiple sectors.

Their initial conversations were with CFOs/procurement heads of large corporates who were extensively outsourcing their logistics requirements and were facing multiple challenges from their vendors, who were unable to cope with the clients’ requirements due to the shortfall of working capital. With the validation from the success of these programs, CredAble’s model expanded to include all types of vendors and not only logistics vendors.

CredAble - Products/Services Offered

CredAble’s focus is to expand financial inclusion for the MSME base through its solutions like:

1. Post-Invoice Early Payment Program enables all suppliers, irrespective of size and stature, to get working capital against their invoices in exchange for a discount. These discounts are derived using CredAble’s proprietary credit assessment model that takes into consideration multiple data points, thereby, enabling the vendor to get access to working capital at their respective bankable rates. The program is designed for vendors to avail working capital on tap without collateral and recourse.
2. Just in Time (JIT) Financing is a pre-invoice financing program designed to bridge the gap between payment obligations and receivables from Corporate. It is based on the occurrence of ‘billable events’ and funding milestones like Purchase Order, Proof of Delivery, Goods Received Note, Goods Acceptance Note, or client-approved MIS. CredAble’s platform automates financing and real-time tracking of such transactions.
3. Financial inclusion through tokenization enables access to working capital for multi-layer supply chains encompassing vendors and sub-vendors. Each series of tokens issued through the CredAble platform represents an underlying invoice value and has a finite expiration period. Tokens can be encashed at any point by vendors and sub-vendors up to expiration at their specified cost of finance. This is enabled through CredAble’s proprietary platform which digitizes the entire process right from issuance to settlement. A first in the Indian industry.

CredAble - Name, Tagline and Logo

Given the focus of the business was to “enable credit” the name CredAble was apt.

The tag line - We Must because…. We Can, symbolizes the company's approach – "Nothing is impossible as long as we believe we can!!!" In order to change the existing traditional mindsets, the first step is to believe we can.

While they were designing the logo it was important that all stakeholders understand who they are and what they do. The emphasis of ‘A’ in CredAble is to showcase it as -

1. An en-Abler of working capital, and
2. To depict upward growth “↑”. This in turn would create an impact not only for India Inc but the GDP as a whole.

CredAble - Business Model & Revenue Model

Early- Fees percentage over the savings generated for the Anchor.

Lending- Net Interest Margin and upfront processing fees on the Asset Under Management (AUM)

Launch of CredAble

The team's strategy has always been to enable working capital using the Anchor down approach wherein they were looking to tie up with large corporates to enable working capital for their entire supply chain ecosystem.

While it was a new concept in India, the founders were extremely confident of the programs and value add that they were creating for all the stakeholders. The initial approach was to reach out to all connections and showcase CredAble’s value proposition. While the response was positive the preliminary movement was slow. As they demonstrated the impact, there were higher levels of acknowledgment & acceptance which catapulted CredAble's outreach. Word of mouth quickly enabled CredAble to onboard multiple large and multi-national clients.

"While we have a large coverage team as well as partnerships, our largest clients have been converted through existing referrals and word of mouth"  Co-founders of CredAble added.

Since its inception, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution.

CredAble - Challenges Faced

"It was a new concept and hence took time to be understood and accepted. The solutioning aptitude versus selling a product worked well for us to showcase the value we created to make working capital accessible to all" Co-founders of CredAble added.

CredAble - Marketing Strategies

CredAble's Marketing campaigns have been holistic in approach with key properties introduced to cater to each business need.

Some of its well-received marketing properties include –

• Insights by CredAble – It takes interesting popular concepts in today’s day and age, and tries to come up with its working capital assessment for people to understand its importance and potential. CredAble's recent coverage on IPL working capital was well-received (One can get more information on CredAble Case studies here -  credable.in/credable-case-studies/)

• Candid by CredAble – In this interesting talk show, CredAble's CEO and host Nirav Choksi talks to industry leaders within enterprise ecosystems to get into their thought process, it’s fun and engaging content filled with interesting anecdotes. This has gained traction and the company has already rolled out 3 episodes.

• Working Capital 101 – The company deems it to be its responsibility to share knowledge around new concepts around working capital which can be very helpful for businesses. Hence, as a step – it launched working capital 101 under business insights which churn out content weekly around helpful concepts around working capital and financing.

• Extensive organic marketing initiatives on professional social media platforms like LinkedIn for both Talent & the organization success stories.
• Product Explainer videos to educate CFOs, Vendors, Banks, Financial Institutes on how CredAble programs have been enabling working capital.

"The success of our marketing lies in growing organically and giving tangible results to our clientele" as said by the founders of CredAble.

CredAble - Funding and Investors

Two rounds of fundraising completed of 60 Crs with Oaks Asset Management.

CredAble - Board & Advisory Board Members

Rakesh Bhatia

• Erstwhile Global CEO of Trade & Receivables Finance for HSBC
• 28+ years of banking experience across Asia, UK & Middle East of which 8 years with HSBC
• Served as CEO of Catholic Syrian Bank and focusing now as a Co-founder, Chair, a mentor to various fintech startups
• Business Marketing Strategy from HBS, PGDBM from IIM-A

Anil Gudibande

• 17+ years of experience with Citi Bank and AIG. Served as MD in Royal Bank of Scotland
• Currently, Co-founder of 1Crowd (India's Leading Angel Network)

Anita Belani

• Serving as Independent Director on Board of IDFC Asset Management, Foseco, etc.,
• Working as an Operating Partner (CPO) in Gaja Capital
• MBA (HR) from XLRI Jamshedpur & BA Economics from Delhi University

Sandeep Somani

• Co-founder & CEO, Oaks Asset Management
• Previously served as EVP & VP in Bay Capital and Enam Asset Management
• CA & CS, Bcom from Delhi University

CredAble - Competitors

Competitors of CredAble - C2FO, KredX, Taulia, Demica

Tools used by CredAble to run company

• Analytics: Metabase, Knowage
• Customer Engagement/Marketing: Google Analytics, Mixpanel, Appsflyer, Verloop
• Engineering: Elastic logstash Kibana, New relic
• Product Management: JIRA, Confluence, Sketch, Zepplin, Slack

CredAble - Recognition and Achievements

• The Fintech and Deep Tech categories at NASSCOM Emerge 50 Awards 2020
• The Best Supply Chain Finance Solution of the Year 2019 at the Inflection 2019, a leading supply chain summit.
• The Oracle Startup Cloud Accelerator Program 2018
• SAP Startup Studio Cohort 2020
• The Best FinTech Startup 2018 at by the Maharashtra Government

CredAble - Future Plans

The future plan is to cover all aspects of Working Capital by the means of enabling true financial inclusion for millions of MSMEs. "We are already covering all metro cities within India and have set up business teams to increase our outreach. The goal is to disburse in excess of USD 1 billion per month going to USD 2 billion per month" the Co-founders of CredAble mentioned.

CredAble - FAQs

What is CredAble?

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

Who are the founders of CredAble?

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

What is CredAble's tagline?

CredAble's tag line - We Must because…. We Can, symbolizes the company's approach – "Nothing is impossible as long as we believe we can!!!" In order to change the existing traditional mindsets, the first step is to believe we can.

How does CredAble make money?

• Early - Fees percentage over the savings generated for the Anchor.
• Lending - Net Interest Margin and upfront processing fees on the Asset Under Management (AUM)

Who is the CEO of CredAble?

Nirav Choksi is the Co-founder & CEO of CredAble.

How much funding has CredAble raised?

Two rounds of fundraising completed of 60 Crs with Oaks Asset Management.

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

Overview-

Trade finance makes it possible for importers, exporters, and companies at large to carry out a wide variety of business transactions with ease. Trade financing is of such vital importance that it presently accounts for 90 percent of global trade. The onset of the Coronavirus pandemic has slowed down the pace of trade transactions taking place across the globe. Read on to understand all that trade financing entails and how its growth curve might alter owing to the pandemic.

Establishing an Understanding of Trade Finance and all that it Entails –

Trade financing is a broad term used to capture within its sphere a number of financial products, features, and implements that an ever-expanding array of companies make use of such that they can carry out their international trade and commerce requirements with ease. Trade financing stands out today as a viable means of conducting trade due to the fact that it adds to the efficiency with which companies including those that import, and export commodities conduct their transactions. It is important to recognize that the breadth of all that trade finance covers is vast which means that the financial tools that companies and banks can take advantage of for their trade to be conducted is vast. 

Third-party governance of each trade carried out under trade financing is the magic ingredient that allows for the smooth functioning of trade. What makes the presence of a third party paramount is the fact that they help mitigate the risks associated with payments and supply that either one of the parties involved in buying or supplying the commodity in question could fall prey to. 

Those that partake in trade finance include but aren’t limited to service providers and insurers, importers and exporters, export credit agencies, companies that focus on offering trade finance services, and banks in addition to several others.

Varied businesses such as the ones mentioned above take advantage of trade financing as it provides them with a number of benefits some of which have been explored below. 

Currency protection is a possibility as upfront risks associated with currency exchanges are mitigated.

Businesses avail of working capital such that they can permit payment extensions from their retailers. This consequently implies that financing in the form of export, import, and vendor is a possibility.

Short-term cash flow issues are no longer troublesome as trade financing takes into account and resolves these.

Trade Finance’s Future Post the Pandemic –

After having explored the benefits of trade financing, its viability is impressive. The issue that now persists is that the pandemic has resulted in varied lockdowns being imposed. This is owed to the fact that the virus is airborne and social distancing is a must. Lockdowns, however, have showcased that commerce activities, for the most part, are suspended and the capacity and productivity that an economy might have in place weaken. Global trade volumes too have seen a decline over the past year because varied countries have tightened the border regulations they have in place.

That being said India has just started the process of removing the lockdowns it had imposed due to the 2^nd wave. Moreover, a number of places in the western world are opening up and removing the kind of restrictive lockdowns they had in place.

The coronavirus pandemic has in fact highlighted the need for trade to be supported as it not only allows for a channel via which medical supplies can be traded but can also help boost the economies of varied nations. 

While several countries have in fact tightened control on their physical borders, this might not work for them in the long run. This is because there exist barely a few countries that are entirely self-sufficient and capable of sustaining themselves and their economies on their own in the long run. In order to be sustainable over a long time frame, countries need to work on opening themselves up to trade such that goods and services they need can still enter via their borders. Moreover, by exporting their products they can improve the state their fiscal standing.

Governments the world over have provided monetary and fiscal policies aimed at easing up the burden faced by MSMEs and while they have provided some relief, insolvencies are anticipated to rise. MSMEs are expected to be shuffled into overdrive in a bid to gain immediate access to working capital finance.

While 2020 saw a demand for finance such that these companies could survive, 2021 is witnessing companies using this financing to add to their working capital requirements such that they can grow and recover.

Certain realms of manufacturing and distribution have benefitted from the pandemic and the sale of products online has skyrocketed owing to work-from-home requirements.

The world Bank believes that there exists a finance gap amounting to USD 5.2 trillion focused primarily in emerging markets where the accessibility to working finance capital has been scarce.

Conclusion -

Trade financing’s growth curve following the pandemic is realistically unlike to remain in a sluggish state owing to the fact that there exist a wide number of essential services and benefits made possible with it. These can help boost economies in a major way which is the need of the hour.

References-

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing

Introduction The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those that avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality

The Asian Development Bank has made clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women need to not only create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion-

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

References-

https://www.gtreview.com/magazine/volume-18-issue-3/making-case-gender-linked-trade-finance/

https://www.thehindubusinessline.com/money-and-banking/digital-technology-can-help-bridge-trade-finance-gap-says-adb/article29440780.ece

Introduction The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those that avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality

The Asian Development Bank has made clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women need to not only create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion-

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

References-

https://www.gtreview.com/magazine/volume-18-issue-3/making-case-gender-linked-trade-finance/

https://www.thehindubusinessline.com/money-and-banking/digital-technology-can-help-bridge-trade-finance-gap-says-adb/article29440780.ece

Introduction The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those that avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality

The Asian Development Bank has made clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women need to not only create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion-

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

References-

<a href="https://www.gtreview.com/magazine/volume-18-issue-3/making-case-gender-linked-trade-finance/">https://www.gtreview.com/magazine/volume-18-issue-3/making-case-gender-linked-trade-finance/</a>

https://www.thehindubusinessline.com/money-and-banking/digital-technology-can-help-bridge-trade-finance-gap-says-adb/article29440780.ece

Overview-

Trade finance makes it possible for importers, exporters, and companies at large to carry out a wide variety of business transactions with ease. Trade financing is of such vital importance that it presently accounts for 90 percent of global trade. The onset of the Coronavirus pandemic has slowed down the pace of trade transactions taking place across the globe. Read on to understand all that trade financing entails and how its growth curve might alter owing to the pandemic.

Establishing an Understanding of Trade Finance and all that it Entails –

Trade financing is a broad term used to capture within its sphere a number of financial products, features, and implements that an ever-expanding array of companies make use of such that they can carry out their international trade and commerce requirements with ease. Trade financing stands out today as a viable means of conducting trade due to the fact that it adds to the efficiency with which companies including those that import, and export commodities conduct their transactions. It is important to recognize that the breadth of all that trade finance covers is vast which means that the financial tools that companies and banks can take advantage of for their trade to be conducted is vast. 

Third-party governance of each trade carried out under trade financing is the magic ingredient that allows for the smooth functioning of trade. What makes the presence of a third party paramount is the fact that they help mitigate the risks associated with payments and supply that either one of the parties involved in buying or supplying the commodity in question could fall prey to. 

Those that partake in trade finance include but aren’t limited to service providers and insurers, importers and exporters, export credit agencies, companies that focus on offering trade finance services, and banks in addition to several others.

Varied businesses such as the ones mentioned above take advantage of trade financing as it provides them with a number of benefits some of which have been explored below. 

Currency protection is a possibility as upfront risks associated with currency exchanges are mitigated.

Businesses avail of working capital such that they can permit payment extensions from their retailers. This consequently implies that financing in the form of export, import, and vendor is a possibility.

Short-term cash flow issues are no longer troublesome as trade financing takes into account and resolves these.

Trade Finance’s Future Post the Pandemic –

After having explored the benefits of trade financing, its viability is impressive. The issue that now persists is that the pandemic has resulted in varied lockdowns being imposed. This is owed to the fact that the virus is airborne and social distancing is a must. Lockdowns, however, have showcased that commerce activities, for the most part, are suspended and the capacity and productivity that an economy might have in place weaken. Global trade volumes too have seen a decline over the past year because varied countries have tightened the border regulations they have in place.

That being said India has just started the process of removing the lockdowns it had imposed due to the 2^nd wave. Moreover, a number of places in the western world are opening up and removing the kind of restrictive lockdowns they had in place.

The coronavirus pandemic has in fact highlighted the need for trade to be supported as it not only allows for a channel via which medical supplies can be traded but can also help boost the economies of varied nations. 

While several countries have in fact tightened control on their physical borders, this might not work for them in the long run. This is because there exist barely a few countries that are entirely self-sufficient and capable of sustaining themselves and their economies on their own in the long run. In order to be sustainable over a long time frame, countries need to work on opening themselves up to trade such that goods and services they need can still enter via their borders. Moreover, by exporting their products they can improve the state their fiscal standing.

Governments the world over have provided monetary and fiscal policies aimed at easing up the burden faced by MSMEs and while they have provided some relief, insolvencies are anticipated to rise. MSMEs are expected to be shuffled into overdrive in a bid to gain immediate access to working capital finance.

While 2020 saw a demand for finance such that these companies could survive, 2021 is witnessing companies using this financing to add to their working capital requirements such that they can grow and recover.

Certain realms of manufacturing and distribution have benefitted from the pandemic and the sale of products online has skyrocketed owing to work-from-home requirements.

The world Bank believes that there exists a finance gap amounting to USD 5.2 trillion focused primarily in emerging markets where the accessibility to working finance capital has been scarce.

Conclusion -

Trade financing’s growth curve following the pandemic is realistically unlike to remain in a sluggish state owing to the fact that there exist a wide number of essential services and benefits made possible with it. These can help boost economies in a major way which is the need of the hour.

References-

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing

Overview – 

Trade finance makes it possible for importers, exporters, and companies at large to carry out a wide variety of business transactions with ease. Trade financing is of such vital importance that it presently accounts for 90 percent of global trade. The onset of the Coronavirus pandemic has slowed down the pace of trade transactions taking place across the globe. Read on to understand all that trade financing entails and how its growth curve might alter owing to the pandemic.

Establishing an Understanding of Trade Finance and all that it Entails – 

Trade financing is a broad term used to capture within its sphere a number of financial products, features, and implements that an ever-expanding array of companies make use of such that they can carry out their international trade and commerce requirements with ease. Trade financing stands out today as a viable means of conducting trade due to the fact that it adds to the efficiency with which companies including those that import, and export commodities conduct their transactions. It is important to recognize that the breadth of all that trade finance covers is vast which means that the financial tools that companies and banks can take advantage of for their trade to be conducted is vast. 

Third-party governance of each trade carried out under trade financing is the magic ingredient that allows for the smooth functioning of trade. What makes the presence of a third party paramount is the fact that they help mitigate the risks associated with payments and supply that either one of the parties involved in buying or supplying the commodity in question could fall prey to. 

Those that partake in trade finance include but aren’t limited to service providers and insurers, importers and exporters, export credit agencies, companies that focus on offering trade finance services, and banks in addition to several others.

Varied businesses such as the ones mentioned above take advantage of trade financing as it provides them with a number of benefits some of which have been explored below. 

Currency protection is a possibility as upfront risks associated with currency exchanges are mitigated.

Businesses avail of working capital such that they can permit payment extensions from their retailers. This consequently implies that financing in the form of export, import, and vendor is a possibility.

Short-term cash flow issues are no longer troublesome as trade financing takes into account and resolves these.

Trade Finance’s Future Post the Pandemic – 

After having explored the benefits of trade financing, its viability is impressive. The issue that now persists is that the pandemic has resulted in varied lockdowns being imposed. This is owed to the fact that the virus is airborne and social distancing is a must. Lockdowns, however, have showcased that commerce activities, for the most part, are suspended and the capacity and productivity that an economy might have in place weaken. Global trade volumes too have seen a decline over the past year because varied countries have tightened the border regulations they have in place.

That being said India has just started the process of removing the lockdowns it had imposed due to the 2^nd wave. Moreover, a number of places in the western world are opening up and removing the kind of restrictive lockdowns they had in place.

The coronavirus pandemic has in fact highlighted the need for trade to be supported as it not only allows for a channel via which medical supplies can be traded but can also help boost the economies of varied nations. 

While several countries have in fact tightened control on their physical borders, this might not work for them in the long run. This is because there exist barely a few countries that are entirely self-sufficient and capable of sustaining themselves and their economies on their own in the long run. In order to be sustainable over a long time frame, countries need to work on opening themselves up to trade such that goods and services they need can still enter via their borders. Moreover, by exporting their products they can improve the state their fiscal standing.

Governments the world over have provided monetary and fiscal policies aimed at easing up the burden faced by MSMEs and while they have provided some relief, insolvencies are anticipated to rise. MSMEs are expected to be shuffled into overdrive in a bid to gain immediate access to working capital finance.

While 2020 saw a demand for finance such that these companies could survive, 2021 is witnessing companies using this financing to add to their working capital requirements such that they can grow and recover.

Certain realms of manufacturing and distribution have benefitted from the pandemic and the sale of products online has skyrocketed owing to work-from-home requirements.

The world Bank believes that there exists a finance gap amounting to USD 5.2 trillion focused primarily in emerging markets where the accessibility to working finance capital has been scarce.

Conclusion – 

Trade financing’s growth curve following the pandemic is realistically unlike to remain in a sluggish state owing to the fact that there exist a wide number of essential services and benefits made possible with it. These can help boost economies in a major way which is the need of the hour.

References – 

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing

Overview – 

Trade finance makes it possible for importers, exporters, and companies at large to carry out a wide variety of business transactions with ease. Trade financing is of such vital importance that it presently accounts for 90 percent of global trade. The onset of the Coronavirus pandemic has slowed down the pace of trade transactions taking place across the globe. Read on to understand all that trade financing entails and how its growth curve might alter owing to the pandemic.

Establishing an Understanding of Trade Finance and all that it Entails – 

Trade financing is a broad term used to capture within its sphere a number of financial products, features, and implements that an ever-expanding array of companies make use of such that they can carry out their international trade and commerce requirements with ease. Trade financing stands out today as a viable means of conducting trade due to the fact that it adds to the efficiency with which companies including those that import, and export commodities conduct their transactions. It is important to recognize that the breadth of all that trade finance covers is vast which means that the financial tools that companies and banks can take advantage of for their trade to be conducted is vast. 

Third-party governance of each trade carried out under trade financing is the magic ingredient that allows for the smooth functioning of trade. What makes the presence of a third party paramount is the fact that they help mitigate the risks associated with payments and supply that either one of the parties involved in buying or supplying the commodity in question could fall prey to. 

Those that partake in trade finance include but aren’t limited to service providers and insurers, importers and exporters, export credit agencies, companies that focus on offering trade finance services, and banks in addition to several others.

Varied businesses such as the ones mentioned above take advantage of trade financing as it provides them with a number of benefits some of which have been explored below. 

Currency protection is a possibility as upfront risks associated with currency exchanges are mitigated.

Businesses avail of working capital such that they can permit payment extensions from their retailers. This consequently implies that financing in the form of export, import, and vendor is a possibility.

Short-term cash flow issues are no longer troublesome as trade financing takes into account and resolves these.

Trade Finance’s Future Post the Pandemic – 

After having explored the benefits of trade financing, its viability is impressive. The issue that now persists is that the pandemic has resulted in varied lockdowns being imposed. This is owed to the fact that the virus is airborne and social distancing is a must. Lockdowns, however, have showcased that commerce activities, for the most part, are suspended and the capacity and productivity that an economy might have in place weaken. Global trade volumes too have seen a decline over the past year because varied countries have tightened the border regulations they have in place.

That being said India has just started the process of removing the lockdowns it had imposed due to the 2^nd wave. Moreover, a number of places in the western world are opening up and removing the kind of restrictive lockdowns they had in place.

The coronavirus pandemic has in fact highlighted the need for trade to be supported as it not only allows for a channel via which medical supplies can be traded but can also help boost the economies of varied nations. 

While several countries have in fact tightened control on their physical borders, this might not work for them in the long run. This is because there exist barely a few countries that are entirely self-sufficient and capable of sustaining themselves and their economies on their own in the long run. In order to be sustainable over a long time frame, countries need to work on opening themselves up to trade such that goods and services they need can still enter via their borders. Moreover, by exporting their products they can improve the state their fiscal standing.

Governments the world over have provided monetary and fiscal policies aimed at easing up the burden faced by MSMEs and while they have provided some relief, insolvencies are anticipated to rise. MSMEs are expected to be shuffled into overdrive in a bid to gain immediate access to working capital finance.

While 2020 saw a demand for finance such that these companies could survive, 2021 is witnessing companies using this financing to add to their working capital requirements such that they can grow and recover.

Certain realms of manufacturing and distribution have benefitted from the pandemic and the sale of products online has skyrocketed owing to work-from-home requirements.

The world Bank believes that there exists a finance gap amounting to USD 5.2 trillion focused primarily in emerging markets where the accessibility to working finance capital has been scarce.

Conclusion – 

Trade financing’s growth curve following the pandemic is realistically unlike to remain in a sluggish state owing to the fact that there exist a wide number of essential services and benefits made possible with it. These can help boost economies in a major way which is the need of the hour.

References – 

https://blogs.adb.org/even-with-borders-closing-we-need-to-keep-trade-flowing https://www.tradefinanceglobal.com/posts/the-post-pandemic-evolution-of-supply-chain-finance/

Introduction The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those that avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality  

The Asian Development Bank has made clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women need to not only create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion -

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

Introduction The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those that avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality  

The Asian Development Bank has made clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women need to not only create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion -

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

Introduction The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those that avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality  

The Asian Development Bank has made clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women need to not only create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion -

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

Introduction Trade finance makes it possible for importers, exporters, and companies, in general, to be able to carry out business transactions with a high level of ease that they previously didn’t have access to. The importance of trade finance is paramount and is evident in the fact that 90 percent of global trade transactions make use of trade financing. Read on to understand the surprising link that exists between trade finance and gender equality. First, however, it is important to examine all that trade finance covers.

Understanding Trade Financing

There are a number of financial services, products and tools made use of and that fall under the umbrella term that is trade financing. Companies make use of the same such that they can be productive members of a globally active trading community and can conduct their commerce dealings with a level of ease that previously didn’t exist. Trade financing makes it possible for those that avail of its services to carry out trade transactions with an efficiency that might otherwise not be accessible to them. This efficiency is vital and much appreciated by companies that avail of trade financing as it allows them the opportunity to accumulate greater returns over long stretches of time. It is worth mentioning that the breadth of services, functions and financial tools on offer under trade financing are plenty.

The presence of a third party acting in a supervisory role between two parties partaking in a given trade transaction is vital and is what allows for trade financing to succeed. This is because this part is responsible for reducing the risks that pertain to supply and payment and which both parties involved might otherwise be wary of. 

In addition to banks, trade financing services are enjoyed by agencies that deal with export credit, service issuers and providers, companies that are focused on trade finance, as well as those engaged in import and export among others.

Trade financing is as popular as is today due in part to the benefits it provides those of whom avail of it. These include but aren’t limited to resolving issues pertaining to cash flow on a short-term basis and providing currency protection. Financing relating to export, import, and vendors is also provided for under trade financing.

Exploring the Link Between Trade Finance and Gender Equality  

The Asian Development Bank has made clear that in order to level opportunities provided in Asia and the Pacific, women-owned companies require financial support in order to carry out their import and export operations.

The participation of women in the workforce – especially at higher rungs is important as it contributes to the development of 50 percent of the population and allows for a greater level of overall economic growth and prosperity.

Gender equality isn’t just a social and moral issue alone but also happens to pose major economic challenges. As per a study conducted by the Boston Consulting Group in 2019, had women had the same access and opportunity to participate in the market in the form of entrepreneurs, global GDP had the potential to rise by 6 percent i.e., by a staggering USD 5 trillion.

As per research conducted by ADB, there exists a gap within the market that lacks financial support amounting to USD 1.5 trillion. Within this domain of those that lack financial access, the group that has the worst access is that of women-owned firms. This is evident in the fact that 44 percent of their requests for financial support in order to carry forth their import and export operations have been rejected. This rejection has resulted in only a limited number of women continuing to look for alternative means of financing their operations regardless of whether this would be via a formal or an informal channel. 

By making sure that women entrepreneurs have enhanced access to financing options, and economic and social-oriented development is a possibility, this scenario can improve. 

Women need to not only create jobs but should be given the opportunity to provide solutions to problems of varying sizes. Women must have adequate access to and experience success as they have the potential to cause a ripple effect of the same across society as a whole.

Conclusion -

In order for this to be made possible banks are required to create an environment that maximizes the capabilities of technology such that they can reduce the existing gender gap. This means that barriers that hinder access for all businesses need to be broken down. Further, information pertaining to small and medium enterprises needs to be made accessible which can be done provided the Legal Entity Identifier system is adopted on a global level.

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by CredAble.

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform. Founded by Nirav Choksi and Ram Kewalramani, the goal of this fintech startup is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is Think Working capital... Think CredAble.

Since its inception in 2017, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution. CredAble aims to disburse in excess of USD 1 billion per month going to USD 2 billion per month.

StartupTalky interviewed the co-founders, Nirav Choksi & Ram Kewalramani to get insights on the Success Story and Growth Hacks of CredAble. Know all about CredAble funding, founders, business and revenue model, How it started, marketing strategies, and more.

CredAble - Company Highlights

About CredAble - Mission & Vision
CredAble - Industry Details
CredAble - Founders & Team
CredAble History - How it Started
CredAble - Products/Services Offered
CredAble - Name, Tagline and Logo
CredAble - Business Model & Revenue Model
Launch of CredAble
CredAble - Challenges Faced
CredAble - Marketing Strategies
CredAble - Funding and Investors
CredAble - Board & Advisory Board Members
CredAble - Competitors
Tools used by CredAble to run company
CredAble - Recognition and Achievements
CredAble - Future Plans
CredAble - FAQs

About CredAble - Mission & Vision

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

The goal is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is think Working capital... think CredAble.

CredAble’s vision is to create holistic financial inclusion that would triple the availability of working capital, wherein the ripple effect has a significant growth in India’s GDP.

The co-founders of CreAble highlight the Culture Statement of the company - "There are 6 Core Culture statements that we at CredAble completely align to and this is how we stay on our Mission"

1. We are Audaciously breaking boundaries

• Proposing ‘out of the box’ solutions to customers
• Solving big problems that matter

2. We are humbled

• By the partnership and support of our shareholders
• By the opportunity to make a difference in this world

3. We are Generous

• We give ourselves fully
• We share our knowledge and insights freely with all

4. We are enablers of Context to Content

• We are aware of ‘Why’ of ‘What’ we do every day
• Create a Powerful contextual relationship

5. We set the measure

• Set the benchmark of excellence in everything we do
• Highest standard of customer and employee satisfaction

6. We are responsible

• For fulfilling our purpose
• For transformation of our society and environment

CredAble - Industry Details  

CredAble is focused on enabling working capital for India Inc. Currently, there is a USD 75 billion working capital gap in India. Furthermore, there are approx. 75 million MSMEs of which only 16% have access to formal credit, thereby, creating a USD 350 billion credit gap.

The Covid 19 pandemic only exasperated the MSME sector, as major financial institutions such as banks started to reduce their MSME credit lines and diverted the same to large corporates, which further fueled the need to create financial inclusion for the MSME segment. With India’s current quarter-on-quarter GDP growth rate at 1.6% for FY 2021-22, of which the MSME contribution is approximately 30% will further fuel the requirement of working capital for India Inc.

Fintechs such as CredAble will become the backbone for working capital availability for India Inc going forward.

CredAble - Founders & Team

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

Nirav Choksi | Co-Founder & CEO, CredAble

He has been an entrepreneur for almost 25 + years and has incubated and scaled businesses raised debt and equity financing, and built multi-disciplinary global teams in the areas of technology, private equity, and international commodities. Nirav heads the Sales, FI Coverage, Tech & Human Capital functions at CredAble.

Prior to CredAble, Nirav co-founded and led Equentia Natural Resources Pte Ltd., a multi-commodity trading and structured finance company with offices in Singapore, Jakarta, Dubai, and Mumbai. ENR is amongst the top 5 importers of Indonesian Thermal Coal for the private sector in India with revenues in excess of $500 Million a year and trading volumes of over 10 Million MT. ENR also has a significant structured trade finance and debt arbitrage operation. Prior to that Nirav has founded several companies in the internet and technology space and has had 3 successful exits. He is an active early-stage investor in tech-enabled consumer-led ventures and has invested in over 25 opportunities. Nirav studied computer science and economics at the University of Michigan.

Ram Kewalramani | Co-Founder & Managing Director, CredAble

He has had a career spanning over 18 + years working in leadership positions. Ram has gained invaluable insight and expertise in the domains of Investment Banking, Marketing, Finance, and Operations. As an acknowledged veteran of the Employee Transportation industry, he brings valuable industry insights, experience, and connections to further the establishment of the vision behind CredAble. Ram heads the Fincon, Credit Risk & Risk Operations functions at CredAble.

Prior to founding CredAble, Ram spent 14 + years in investment banking and P&L leadership capacities. Previously, he was a shareholder and CEO of People Premier Logistics, a successful employee transportation business. Prior to becoming an entrepreneur, Ram was an investment banker with Centrum Capital and Grant Thornton.

Current Company Size, Work Culture & Hiring Funda -

The current headcount of CredAble is 112.

As mentioned earlier, CredAble values employees like the way it values its clients and strongly follow the below culture statements:

• We are Audaciously breaking boundaries
• We are humbled
• We are Generous
• We are enablers of Context to Content
• We set the measure
• We are responsible

At CredAble, the hiring process is efficiently streamlined to ensure to hire the right talent for the right job. They have detailed BEI interviews both at the Functional & HR interview evaluation stages.

CredAble History - How it Started

The founders in their previous avatar, have had a great deal of exposure to the working capital gap in India. Nirav, who comes with over 25 years of work experience across IT Services, Commodity trading, Trade Finance, was dealing with banks to create structured trade finance flows for his trading business. Ram, who comes with over 18 years of work experience, was the CEO of a large logistics business which required him to constantly focus on raising working capital, but always found it difficult given the traditional approach used by banks and NBFCs. This amalgamation of experience made both the founders believe that they were the most pertinent people to co-create programs that would enable working capital for India inc.

CredAble started its journey to enable working capital within the logistics sector. The product was split into two categories namely JIT financing and post invoice financing. This permutation & combination of the product reduced the cash-to-cash cycle of the logistics borrowers from an average of 110 days to under 24 hours! All of this was enabled through technology without any human intervention. Once this model was proven, these offerings were expanded to multiple sectors.

Their initial conversations were with CFOs/procurement heads of large corporates who were extensively outsourcing their logistics requirements and were facing multiple challenges from their vendors, who were unable to cope with the clients’ requirements due to the shortfall of working capital. With the validation from the success of these programs, CredAble’s model expanded to include all types of vendors and not only logistics vendors.

CredAble - Products/Services Offered

CredAble’s focus is to expand financial inclusion for the MSME base through its solutions like:

1. Post-Invoice Early Payment Program enables all suppliers, irrespective of size and stature, to get working capital against their invoices in exchange for a discount. These discounts are derived using CredAble’s proprietary credit assessment model that takes into consideration multiple data points, thereby, enabling the vendor to get access to working capital at their respective bankable rates. The program is designed for vendors to avail working capital on tap without collateral and recourse.
2. Just in Time (JIT) Financing is a pre-invoice financing program designed to bridge the gap between payment obligations and receivables from Corporate. It is based on the occurrence of ‘billable events’ and funding milestones like Purchase Order, Proof of Delivery, Goods Received Note, Goods Acceptance Note, or client-approved MIS. CredAble’s platform automates financing and real-time tracking of such transactions.
3. Financial inclusion through tokenization enables access to working capital for multi-layer supply chains encompassing vendors and sub-vendors. Each series of tokens issued through the CredAble platform represents an underlying invoice value and has a finite expiration period. Tokens can be encashed at any point by vendors and sub-vendors up to expiration at their specified cost of finance. This is enabled through CredAble’s proprietary platform which digitizes the entire process right from issuance to settlement. A first in the Indian industry.

CredAble - Name, Tagline and Logo

Given the focus of the business was to “enable credit” the name CredAble was apt.

The tag line - We Must because…. We Can, symbolizes the company's approach – "Nothing is impossible as long as we believe we can!!!" In order to change the existing traditional mindsets, the first step is to believe we can.

While they were designing the logo it was important that all stakeholders understand who they are and what they do. The emphasis of ‘A’ in CredAble is to showcase it as -

1. An en-Abler of working capital, and
2. To depict upward growth “↑”. This in turn would create an impact not only for India Inc but the GDP as a whole.

CredAble - Business Model & Revenue Model

Early- Fees percentage over the savings generated for the Anchor.

Lending- Net Interest Margin and upfront processing fees on the Asset Under Management (AUM)

Launch of CredAble

The team's strategy has always been to enable working capital using the Anchor down approach wherein they were looking to tie up with large corporates to enable working capital for their entire supply chain ecosystem.

While it was a new concept in India, the founders were extremely confident of the programs and value add that they were creating for all the stakeholders. The initial approach was to reach out to all connections and showcase CredAble’s value proposition. While the response was positive the preliminary movement was slow. As they demonstrated the impact, there were higher levels of acknowledgment & acceptance which catapulted CredAble's outreach. Word of mouth quickly enabled CredAble to onboard multiple large and multi-national clients.

"While we have a large coverage team as well as partnerships, our largest clients have been converted through existing referrals and word of mouth"  Co-founders of CredAble added.

Since its inception, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution.

CredAble - Challenges Faced

"It was a new concept and hence took time to be understood and accepted. The solutioning aptitude versus selling a product worked well for us to showcase the value we created to make working capital accessible to all" Co-founders of CredAble added.

CredAble - Marketing Strategies

CredAble's Marketing campaigns have been holistic in approach with key properties introduced to cater to each business need.

Some of its well-received marketing properties include –

• Insights by CredAble – It takes interesting popular concepts in today’s day and age, and tries to come up with its working capital assessment for people to understand its importance and potential. CredAble's recent coverage on IPL working capital was well-received (One can get more information on CredAble Case studies here -  credable.in/credable-case-studies/)

• Candid by CredAble – In this interesting talk show, CredAble's CEO and host Nirav Choksi talks to industry leaders within enterprise ecosystems to get into their thought process, it’s fun and engaging content filled with interesting anecdotes. This has gained traction and the company has already rolled out 3 episodes.

• Working Capital 101 – The company deems it to be its responsibility to share knowledge around new concepts around working capital which can be very helpful for businesses. Hence, as a step – it launched working capital 101 under business insights which churn out content weekly around helpful concepts around working capital and financing.

• Extensive organic marketing initiatives on professional social media platforms like LinkedIn for both Talent & the organization success stories.
• Product Explainer videos to educate CFOs, Vendors, Banks, Financial Institutes on how CredAble programs have been enabling working capital.

"The success of our marketing lies in growing organically and giving tangible results to our clientele" as said by the founders of CredAble.

CredAble - Funding and Investors

Two rounds of fundraising completed of 60 Crs with Oaks Asset Management.

CredAble - Board & Advisory Board Members

Rakesh Bhatia

• Erstwhile Global CEO of Trade & Receivables Finance for HSBC
• 28+ years of banking experience across Asia, UK & Middle East of which 8 years with HSBC
• Served as CEO of Catholic Syrian Bank and focusing now as a Co-founder, Chair, a mentor to various fintech startups
• Business Marketing Strategy from HBS, PGDBM from IIM-A

Anil Gudibande

• 17+ years of experience with Citi Bank and AIG. Served as MD in Royal Bank of Scotland
• Currently, Co-founder of 1Crowd (India's Leading Angel Network)

Anita Belani

• Serving as Independent Director on Board of IDFC Asset Management, Foseco, etc.,
• Working as an Operating Partner (CPO) in Gaja Capital
• MBA (HR) from XLRI Jamshedpur & BA Economics from Delhi University

Sandeep Somani

• Co-founder & CEO, Oaks Asset Management
• Previously served as EVP & VP in Bay Capital and Enam Asset Management
• CA & CS, Bcom from Delhi University

CredAble - Competitors

Competitors of CredAble - C2FO, KredX, Taulia, Demica

Tools used by CredAble to run company

• Analytics: Metabase, Knowage
• Customer Engagement/Marketing: Google Analytics, Mixpanel, Appsflyer, Verloop
• Engineering: Elastic logstash Kibana, New relic
• Product Management: JIRA, Confluence, Sketch, Zepplin, Slack

CredAble - Recognition and Achievements

• The Fintech and Deep Tech categories at NASSCOM Emerge 50 Awards 2020
• The Best Supply Chain Finance Solution of the Year 2019 at the Inflection 2019, a leading supply chain summit.
• The Oracle Startup Cloud Accelerator Program 2018
• SAP Startup Studio Cohort 2020
• The Best FinTech Startup 2018 at by the Maharashtra Government

CredAble - Future Plans

The future plan is to cover all aspects of Working Capital by the means of enabling true financial inclusion for millions of MSMEs. "We are already covering all metro cities within India and have set up business teams to increase our outreach. The goal is to disburse in excess of USD 1 billion per month going to USD 2 billion per month" the Co-founders of CredAble mentioned.

CredAble - FAQs

What is CredAble?

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

Who are the founders of CredAble?

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

What is CredAble's tagline?

CredAble's tag line - We Must because…. We Can, symbolizes the company's approach – "Nothing is impossible as long as we believe we can!!!" In order to change the existing traditional mindsets, the first step is to believe we can.

How does CredAble make money?

• Early - Fees percentage over the savings generated for the Anchor.
• Lending - Net Interest Margin and upfront processing fees on the Asset Under Management (AUM)

Who is the CEO of CredAble?

Nirav Choksi is the Co-founder & CEO of CredAble.

How much funding has CredAble raised?

Two rounds of fundraising completed of 60 Crs with Oaks Asset Management.

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by CredAble.

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform. Founded by Nirav Choksi and Ram Kewalramani, the goal of this fintech startup is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is Think Working capital... Think CredAble.

Since its inception in 2017, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution. CredAble aims to disburse in excess of USD 1 billion per month going to USD 2 billion per month.

StartupTalky interviewed the co-founders, Nirav Choksi & Ram Kewalramani to get insights on the Success Story and Growth Hacks of CredAble. Know all about CredAble funding, founders, business and revenue model, How it started, marketing strategies, and more.

CredAble - Company Highlights

About CredAble - Mission & Vision
CredAble - Industry Details
CredAble - Founders & Team
CredAble History - How it Started
CredAble - Products/Services Offered
CredAble - Name, Tagline and Logo
CredAble - Business Model & Revenue Model
Launch of CredAble
CredAble - Challenges Faced
CredAble - Marketing Strategies
CredAble - Funding and Investors
CredAble - Board & Advisory Board Members
CredAble - Competitors
Tools used by CredAble to run company
CredAble - Recognition and Achievements
CredAble - Future Plans
CredAble - FAQs

About CredAble - Mission & Vision

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

The goal is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is think Working capital... think CredAble.

CredAble’s vision is to create holistic financial inclusion that would triple the availability of working capital, wherein the ripple effect has a significant growth in India’s GDP.

The co-founders of CreAble highlight the Culture Statement of the company - "There are 6 Core Culture statements that we at CredAble completely align to and this is how we stay on our Mission"

1. We are Audaciously breaking boundaries

• Proposing ‘out of the box’ solutions to customers
• Solving big problems that matter

2. We are humbled

• By the partnership and support of our shareholders
• By the opportunity to make a difference in this world

3. We are Generous

• We give ourselves fully
• We share our knowledge and insights freely with all

4. We are enablers of Context to Content

• We are aware of ‘Why’ of ‘What’ we do every day
• Create a Powerful contextual relationship

5. We set the measure

• Set the benchmark of excellence in everything we do
• Highest standard of customer and employee satisfaction

6. We are responsible

• For fulfilling our purpose
• For transformation of our society and environment

CredAble - Industry Details  

CredAble is focused on enabling working capital for India Inc. Currently, there is a USD 75 billion working capital gap in India. Furthermore, there are approx. 75 million MSMEs of which only 16% have access to formal credit, thereby, creating a USD 350 billion credit gap.

The Covid 19 pandemic only exasperated the MSME sector, as major financial institutions such as banks started to reduce their MSME credit lines and diverted the same to large corporates, which further fueled the need to create financial inclusion for the MSME segment. With India’s current quarter-on-quarter GDP growth rate at 1.6% for FY 2021-22, of which the MSME contribution is approximately 30% will further fuel the requirement of working capital for India Inc.

Fintechs such as CredAble will become the backbone for working capital availability for India Inc going forward.

CredAble - Founders & Team

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

Nirav Choksi | Co-Founder & CEO, CredAble

He has been an entrepreneur for almost 25 + years and has incubated and scaled businesses raised debt and equity financing, and built multi-disciplinary global teams in the areas of technology, private equity, and international commodities. Nirav heads the Sales, FI Coverage, Tech & Human Capital functions at CredAble.

Prior to CredAble, Nirav co-founded and led Equentia Natural Resources Pte Ltd., a multi-commodity trading and structured finance company with offices in Singapore, Jakarta, Dubai, and Mumbai. ENR is amongst the top 5 importers of Indonesian Thermal Coal for the private sector in India with revenues in excess of $500 Million a year and trading volumes of over 10 Million MT. ENR also has a significant structured trade finance and debt arbitrage operation. Prior to that Nirav has founded several companies in the internet and technology space and has had 3 successful exits. He is an active early-stage investor in tech-enabled consumer-led ventures and has invested in over 25 opportunities. Nirav studied computer science and economics at the University of Michigan.

Ram Kewalramani | Co-Founder & Managing Director, CredAble

He has had a career spanning over 18 + years working in leadership positions. Ram has gained invaluable insight and expertise in the domains of Investment Banking, Marketing, Finance, and Operations. As an acknowledged veteran of the Employee Transportation industry, he brings valuable industry insights, experience, and connections to further the establishment of the vision behind CredAble. Ram heads the Fincon, Credit Risk & Risk Operations functions at CredAble.

Prior to founding CredAble, Ram spent 14 + years in investment banking and P&L leadership capacities. Previously, he was a shareholder and CEO of People Premier Logistics, a successful employee transportation business. Prior to becoming an entrepreneur, Ram was an investment banker with Centrum Capital and Grant Thornton.

Current Company Size, Work Culture & Hiring Funda -

The current headcount of CredAble is 112.

As mentioned earlier, CredAble values employees like the way it values its clients and strongly follow the below culture statements:

• We are Audaciously breaking boundaries
• We are humbled
• We are Generous
• We are enablers of Context to Content
• We set the measure
• We are responsible

At CredAble, the hiring process is efficiently streamlined to ensure to hire the right talent for the right job. They have detailed BEI interviews both at the Functional & HR interview evaluation stages.

CredAble History - How it Started

The founders in their previous avatar, have had a great deal of exposure to the working capital gap in India. Nirav, who comes with over 25 years of work experience across IT Services, Commodity trading, Trade Finance, was dealing with banks to create structured trade finance flows for his trading business. Ram, who comes with over 18 years of work experience, was the CEO of a large logistics business which required him to constantly focus on raising working capital, but always found it difficult given the traditional approach used by banks and NBFCs. This amalgamation of experience made both the founders believe that they were the most pertinent people to co-create programs that would enable working capital for India inc.

CredAble started its journey to enable working capital within the logistics sector. The product was split into two categories namely JIT financing and post invoice financing. This permutation & combination of the product reduced the cash-to-cash cycle of the logistics borrowers from an average of 110 days to under 24 hours! All of this was enabled through technology without any human intervention. Once this model was proven, these offerings were expanded to multiple sectors.

Their initial conversations were with CFOs/procurement heads of large corporates who were extensively outsourcing their logistics requirements and were facing multiple challenges from their vendors, who were unable to cope with the clients’ requirements due to the shortfall of working capital. With the validation from the success of these programs, CredAble’s model expanded to include all types of vendors and not only logistics vendors.

CredAble - Products/Services Offered

CredAble’s focus is to expand financial inclusion for the MSME base through its solutions like:

1. Post-Invoice Early Payment Program enables all suppliers, irrespective of size and stature, to get working capital against their invoices in exchange for a discount. These discounts are derived using CredAble’s proprietary credit assessment model that takes into consideration multiple data points, thereby, enabling the vendor to get access to working capital at their respective bankable rates. The program is designed for vendors to avail working capital on tap without collateral and recourse.
2. Just in Time (JIT) Financing is a pre-invoice financing program designed to bridge the gap between payment obligations and receivables from Corporate. It is based on the occurrence of ‘billable events’ and funding milestones like Purchase Order, Proof of Delivery, Goods Received Note, Goods Acceptance Note, or client-approved MIS. CredAble’s platform automates financing and real-time tracking of such transactions.
3. Financial inclusion through tokenization enables access to working capital for multi-layer supply chains encompassing vendors and sub-vendors. Each series of tokens issued through the CredAble platform represents an underlying invoice value and has a finite expiration period. Tokens can be encashed at any point by vendors and sub-vendors up to expiration at their specified cost of finance. This is enabled through CredAble’s proprietary platform which digitizes the entire process right from issuance to settlement. A first in the Indian industry.

CredAble - Name, Tagline and Logo

Given the focus of the business was to “enable credit” the name CredAble was apt.

The tag line - We Must because…. We Can, symbolizes the company's approach – "Nothing is impossible as long as we believe we can!!!" In order to change the existing traditional mindsets, the first step is to believe we can.

While they were designing the logo it was important that all stakeholders understand who they are and what they do. The emphasis of ‘A’ in CredAble is to showcase it as -

1. An en-Abler of working capital, and
2. To depict upward growth “↑”. This in turn would create an impact not only for India Inc but the GDP as a whole.

CredAble - Business Model & Revenue Model

Early- Fees percentage over the savings generated for the Anchor.

Lending- Net Interest Margin and upfront processing fees on the Asset Under Management (AUM)

Launch of CredAble

The team's strategy has always been to enable working capital using the Anchor down approach wherein they were looking to tie up with large corporates to enable working capital for their entire supply chain ecosystem.

While it was a new concept in India, the founders were extremely confident of the programs and value add that they were creating for all the stakeholders. The initial approach was to reach out to all connections and showcase CredAble’s value proposition. While the response was positive the preliminary movement was slow. As they demonstrated the impact, there were higher levels of acknowledgment & acceptance which catapulted CredAble's outreach. Word of mouth quickly enabled CredAble to onboard multiple large and multi-national clients.

"While we have a large coverage team as well as partnerships, our largest clients have been converted through existing referrals and word of mouth"  Co-founders of CredAble added.

Since its inception, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution.

CredAble - Challenges Faced

"It was a new concept and hence took time to be understood and accepted. The solutioning aptitude versus selling a product worked well for us to showcase the value we created to make working capital accessible to all" Co-founders of CredAble added.

CredAble - Marketing Strategies

CredAble's Marketing campaigns have been holistic in approach with key properties introduced to cater to each business need.

Some of its well-received marketing properties include –

• Insights by CredAble – It takes interesting popular concepts in today’s day and age, and tries to come up with its working capital assessment for people to understand its importance and potential. CredAble's recent coverage on IPL working capital was well-received (One can get more information on CredAble Case studies here -  credable.in/credable-case-studies/)

• Candid by CredAble – In this interesting talk show, CredAble's CEO and host Nirav Choksi talks to industry leaders within enterprise ecosystems to get into their thought process, it’s fun and engaging content filled with interesting anecdotes. This has gained traction and the company has already rolled out 3 episodes.

• Working Capital 101 – The company deems it to be its responsibility to share knowledge around new concepts around working capital which can be very helpful for businesses. Hence, as a step – it launched working capital 101 under business insights which churn out content weekly around helpful concepts around working capital and financing.

• Extensive organic marketing initiatives on professional social media platforms like LinkedIn for both Talent & the organization success stories.
• Product Explainer videos to educate CFOs, Vendors, Banks, Financial Institutes on how CredAble programs have been enabling working capital.

"The success of our marketing lies in growing organically and giving tangible results to our clientele" as said by the founders of CredAble.

CredAble - Funding and Investors

Two rounds of fundraising completed of 60 Crs with Oaks Asset Management.

CredAble - Board & Advisory Board Members

Rakesh Bhatia

• Erstwhile Global CEO of Trade & Receivables Finance for HSBC
• 28+ years of banking experience across Asia, UK & Middle East of which 8 years with HSBC
• Served as CEO of Catholic Syrian Bank and focusing now as a Co-founder, Chair, a mentor to various fintech startups
• Business Marketing Strategy from HBS, PGDBM from IIM-A

Anil Gudibande

• 17+ years of experience with Citi Bank and AIG. Served as MD in Royal Bank of Scotland
• Currently, Co-founder of 1Crowd (India's Leading Angel Network)

Anita Belani

• Serving as Independent Director on Board of IDFC Asset Management, Foseco, etc.,
• Working as an Operating Partner (CPO) in Gaja Capital
• MBA (HR) from XLRI Jamshedpur & BA Economics from Delhi University

Sandeep Somani

• Co-founder & CEO, Oaks Asset Management
• Previously served as EVP & VP in Bay Capital and Enam Asset Management
• CA & CS, Bcom from Delhi University

CredAble - Competitors

Competitors of CredAble - C2FO, KredX, Taulia, Demica

Tools used by CredAble to run company

• Analytics: Metabase, Knowage
• Customer Engagement/Marketing: Google Analytics, Mixpanel, Appsflyer, Verloop
• Engineering: Elastic logstash Kibana, New relic
• Product Management: JIRA, Confluence, Sketch, Zepplin, Slack

CredAble - Recognition and Achievements

• The Fintech and Deep Tech categories at NASSCOM Emerge 50 Awards 2020
• The Best Supply Chain Finance Solution of the Year 2019 at the Inflection 2019, a leading supply chain summit.
• The Oracle Startup Cloud Accelerator Program 2018
• SAP Startup Studio Cohort 2020
• The Best FinTech Startup 2018 at by the Maharashtra Government

CredAble - Future Plans

The future plan is to cover all aspects of Working Capital by the means of enabling true financial inclusion for millions of MSMEs. "We are already covering all metro cities within India and have set up business teams to increase our outreach. The goal is to disburse in excess of USD 1 billion per month going to USD 2 billion per month" the Co-founders of CredAble mentioned.

CredAble - FAQs

What is CredAble?

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

Who are the founders of CredAble?

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

What is CredAble's tagline?

CredAble's tag line - We Must because…. We Can, symbolizes the company's approach – "Nothing is impossible as long as we believe we can!!!" In order to change the existing traditional mindsets, the first step is to believe we can.

How does CredAble make money?

• Early - Fees percentage over the savings generated for the Anchor.
• Lending - Net Interest Margin and upfront processing fees on the Asset Under Management (AUM)

Who is the CEO of CredAble?

Nirav Choksi is the Co-founder & CEO of CredAble.

How much funding has CredAble raised?

Two rounds of fundraising completed of 60 Crs with Oaks Asset Management.

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by CredAble.

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform. Founded by Nirav Choksi and Ram Kewalramani, the goal of this fintech startup is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is Think Working capital... Think CredAble.

Since its inception in 2017, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution. CredAble aims to disburse in excess of USD 1 billion per month going to USD 2 billion per month.

StartupTalky interviewed the co-founders, Nirav Choksi & Ram Kewalramani to get insights on the Success Story and Growth Hacks of CredAble. Know all about CredAble funding, founders, business and revenue model, How it started, marketing strategies, and more.

CredAble - Company Highlights

About CredAble - Mission & Vision
CredAble - Industry Details
CredAble - Founders & Team
CredAble History - How it Started
CredAble - Products/Services Offered
CredAble - Name, Tagline and Logo
CredAble - Business Model & Revenue Model
Launch of CredAble
CredAble - Challenges Faced
CredAble - Marketing Strategies
CredAble - Funding and Investors
CredAble - Board & Advisory Board Members
CredAble - Competitors
Tools used by CredAble to run company
CredAble - Recognition and Achievements
CredAble - Future Plans
CredAble - FAQs

About CredAble - Mission & Vision

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

The goal is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is think Working capital... think CredAble.

CredAble’s vision is to create holistic financial inclusion that would triple the availability of working capital, wherein the ripple effect has a significant growth in India’s GDP.

The co-founders of CreAble highlight the Culture Statement of the company - "There are 6 Core Culture statements that we at CredAble completely align to and this is how we stay on our Mission"

1. We are Audaciously breaking boundaries

• Proposing ‘out of the box’ solutions to customers
• Solving big problems that matter

2. We are humbled

• By the partnership and support of our shareholders
• By the opportunity to make a difference in this world

3. We are Generous

• We give ourselves fully
• We share our knowledge and insights freely with all

4. We are enablers of Context to Content

• We are aware of ‘Why’ of ‘What’ we do every day
• Create a Powerful contextual relationship

5. We set the measure

• Set the benchmark of excellence in everything we do
• Highest standard of customer and employee satisfaction

6. We are responsible

• For fulfilling our purpose
• For transformation of our society and environment

CredAble - Industry Details  

CredAble is focused on enabling working capital for India Inc. Currently, there is a USD 75 billion working capital gap in India. Furthermore, there are approx. 75 million MSMEs of which only 16% have access to formal credit, thereby, creating a USD 350 billion credit gap.

The Covid 19 pandemic only exasperated the MSME sector, as major financial institutions such as banks started to reduce their MSME credit lines and diverted the same to large corporates, which further fueled the need to create financial inclusion for the MSME segment. With India’s current quarter-on-quarter GDP growth rate at 1.6% for FY 2021-22, of which the MSME contribution is approximately 30% will further fuel the requirement of working capital for India Inc.

Fintechs such as CredAble will become the backbone for working capital availability for India Inc going forward.

CredAble - Founders & Team

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

Business accounts can take advantage of overdrafts offered by most lending institutions in the event that their accounts have a balance equivalent to zero. Overdrafts thereby allow for businesses to continue to withdraw money even when their accounts have no funds or, when the amount they wish to withdraw surpasses the amount they presently have. 

The interest rate applies only to what is utilized based on the sanctioned limit. Overdraft limits are determined by lenders once they’ve analyzed a given business’s cash flow, their repayment history and the fiscal relationship between them and the business. 

Startup Loans 

The success and sudden expansion of startup ventures within India has made it possible for any given startup to consider loans that have been designed keeping in mind their fiscal needs. 

Since startups are essentially businesses at their earliest stage, entrepreneurs behind such operations might not be able to provide lending institutions with a significant credit history. In such instances, lenders take into account an entrepreneur’s personal credit history as well. 

They are also required to provide proof of their business existing, as well as registration details. Varied financial considerations are taken into account when lenders determine the capital they will lend along with the tenure and interest rate applicable. 

Equipment Financing 

This is largely popular with manufacturing businesses or large enterprises that often need to purchase expensive equipment or upgrade their existing machines. 

Business owners are eligible for tax benefits if they avail such loans. Due to the specific nature these loans are allocated for, the equipment itself is treated as collateral along with another security. 

Interest rates for such loans tend to be lower than those charged on term deposits. The interest rates, the loaned amount and repayment plans largely depend on the lender in question. 

Government-Funded Loans and Schemes 

The Indian Government provides an array of loan schemes that target varied entrepreneurs based on their lending requirements, business plans and business size. There exist special loans available to female entrepreneurs as well as those targeting micro, small and medium enterprises (MSMEs). 

These loans are available via a number of financial channels including private and public sector banks, regional rural banks, micro and small finance banks as well as non-banking financial companies. 

Loan schemes offered by the Indian government include, but aren’t limited to, Standup India, Startup India, MSME in 59 minutes and Pradhan Mantri Mudra Yojana. 

Letter of Credit 

Serving as a key factor in international trade, letters of credit are often used by businesses that deal with work overseas. 

They serve as funding guarantees provided by lending institutions on behalf of their borrowers that are made available to foreign entities. 

Letters of credit can be obtained from banks for a fee. They act as an assurance that a buyer’s payment to a seller will be received within the requested time frame and for the full amount. 

Merchant Cash Advances 

Such loans comprise cash advances against future sales. They are popular among businesses that derive a large amount of their revenue from credit card sales. These include restaurants, retail stores and medical offices. Borrowers pay off their debt as and when they sell their wares to customers. 

In order to prevent themselves from experiencing a short-term deficit in their cash flow, small to medium enterprises often avail of these loans. As businesses repay their debt as per their daily sales, the amount deducted from sales each day depends on how many sales occurred. 

Invoice Financing 

Similar to merchant cash advances, these loans provide businesses with fast access to cash. However, they are often availed of at lower interest rates as the loans are set against existing invoices rather than projected sales. 

They are largely popular with small businesses that experience a time lag between providing invoices and receiving payments for the same. Lenders provide funds against amounts raised in the borrower’s invoices. Debts are cleared by businesses once they receive their invoice payments as per predetermined tenure and interest rates. 

In addition to the Indian federal government and private banks that provide business loans, a number of online lenders offer business loans. In the case of nimbly accessible loans, defaulting on recovery has its own consequences.

Consequences of Defaulting on a Business Loan 

Varied scenarios including a drop in sales, overspending and miscalculations can all lead to businesses defaulting i.e., being unable to repay debts including the interest or principal on a loan. Defaults occur when borrowers are unable to stand by their debt obligations and either stop making recurring payments, skip payments or stop making any payments altogether. 

The consequences incurred for defaulting on a business loan depend on whether they were secured or unsecured. 

When Secured Loans Are Defaulted: In the case of the secured loans, foreclosures allow lenders the right to gain control of assets provided as collateral under the loan agreement. This collateral is often auctioned in order to account for the lender’s losses. 

When Unsecured Loans Are Defaulted: In the event that an unsecured loan was defaulted, business owners are charged with a late fee. Lenders may also require personal guarantees or may gain control of a business’s assets. Failure to comply with these requests can result in lenders filing lawsuits against businesses that default. The court then determines how the loan is to be recovered. In the event that the loan continues to remain unpaid, the business in question may have to file for bankruptcy.

Repercussions of defaulting business loans are visible in credit scores. Lenders report failure to pay loan instalments to credit agencies each time business owners are found lacking. This can lead to a drop in credit scores, which in turn can imperil the possibility of future loans being approved.

Inverse to a plummeting credit score is a consequent soaring interest rate based on the stipulated business loan agreement. If the interest rate remains the same, borrowers are subject to exorbitantly priced late fees. This directly affects a borrower’s existing loan repayment and also contributes to their ability to avail of loans in the future. 

Ways to Avoid Defaulting on a Business Loan

In order to avoid defaulting a business loan, entrepreneurs and business owners are advised to observe the following. 

Maintain Reserves: All businesses can incur volatile market conditions. In order to withstand these, maintaining a sufficient business bank account balance is advisable. This balance should ideally include three months’ worth of loan repayments that shouldn’t be allocated towards or spent on anything else.

Diligence About Due Dates: Business loan borrowers must be well aware of dates on which each of their repayments are due such that they are fiscally prepared to pay them. While a sole missed repayment might not directly result in defaulting, it can accrue high fees.

Refinancing: Several lenders allow business loan borrowers to refinance their existing loan by providing them with new interest rates, payment schedules or altering other previously agreed upon terms. 

It is particularly appealing to new businesses as short-term loans often end up hindering the very momentum they initially provide. Numerous lenders are therefore ready to refinance these loans which cover longer periods and ask for smaller instalments. Refinancing is not a solution and only a precautionary measure to remain in the clear.

Borrowers who feel they may not be able to pay upcoming instalments with ease must relay these sentiments to their lenders. This proactive behavior could be rewarded with extended terms. 

Reschedule Debt: In the case of excessive expenses incurred by a business, business owners can reschedule their debt i.e., they can restructure their terms of repayment. This is done by extending the time period required to repay a loan and by increasing the number of times said payments are to be paid. While this has the potential to reduce credit scores, it is preferred to default.

Prioritize Debt Repayment: Repeated loan payments must be given the most priority as they cannot be shirked. All business expenses must be viewed second to it. 

In the event that a business owner cannot avoid defaulting, they must seek legal counsel in order to stay afloat. Borrowers must only borrow what they need and not get ahead of themselves. 

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by CredAble.

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform. Founded by Nirav Choksi and Ram Kewalramani, the goal of this fintech startup is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is Think Working capital... Think CredAble.

Since its inception in 2017, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team's single-minded focus on execution. CredAble aims to disburse in excess of USD 1 billion per month going to USD 2 billion per month.

StartupTalky interviewed the co-founders, Nirav Choksi & Ram Kewalramani to get insights on the Success Story and Growth Hacks of CredAble. Know all about CredAble funding, founders, business and revenue model, How it started, marketing strategies, and more.

CredAble - Company Highlights

About CredAble - Mission & Vision
CredAble - Industry Details
CredAble - Founders & Team
CredAble History - How it Started
CredAble - Products/Services Offered
CredAble - Name, Tagline and Logo
CredAble - Business Model & Revenue Model
Launch of CredAble
CredAble - Challenges Faced
CredAble - Marketing Strategies
CredAble - Funding and Investors
CredAble - Board & Advisory Board Members
CredAble - Competitors
Tools used by CredAble to run company
CredAble - Recognition and Achievements
CredAble - Future Plans
CredAble - FAQs

About CredAble - Mission & Vision

CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

The goal is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is think Working capital... think CredAble.

CredAble’s vision is to create holistic financial inclusion that would triple the availability of working capital, wherein the ripple effect has a significant growth in India’s GDP.

The co-founders of CreAble highlight the Culture Statement of the company - "There are 6 Core Culture statements that we at CredAble completely align to and this is how we stay on our Mission"

1. We are Audaciously breaking boundaries

• Proposing ‘out of the box’ solutions to customers
• Solving big problems that matter

2. We are humbled

• By the partnership and support of our shareholders
• By the opportunity to make a difference in this world

3. We are Generous

• We give ourselves fully
• We share our knowledge and insights freely with all

4. We are enablers of Context to Content

• We are aware of ‘Why’ of ‘What’ we do every day
• Create a Powerful contextual relationship

5. We set the measure

• Set the benchmark of excellence in everything we do
• Highest standard of customer and employee satisfaction

6. We are responsible

• For fulfilling our purpose
• For transformation of our society and environment

CredAble - Industry Details  

CredAble is focused on enabling working capital for India Inc. Currently, there is a USD 75 billion working capital gap in India. Furthermore, there are approx. 75 million MSMEs of which only 16% have access to formal credit, thereby, creating a USD 350 billion credit gap.

The Covid 19 pandemic only exasperated the MSME sector, as major financial institutions such as banks started to reduce their MSME credit lines and diverted the same to large corporates, which further fueled the need to create financial inclusion for the MSME segment. With India’s current quarter-on-quarter GDP growth rate at 1.6% for FY 2021-22, of which the MSME contribution is approximately 30% will further fuel the requirement of working capital for India Inc.

Fintechs such as CredAble will become the backbone for working capital availability for India Inc going forward.

CredAble - Founders & Team

Nirav Choksi and Ram Kewalramani are the founders of CredAble.

Business accounts can take advantage of overdrafts offered by most lending institutions in the event that their accounts have a balance equivalent to zero. Overdrafts thereby allow for businesses to continue to withdraw money even when their accounts have no funds or, when the amount they wish to withdraw surpasses the amount they presently have. 

The interest rate applies only to what is utilized based on the sanctioned limit. Overdraft limits are determined by lenders once they’ve analyzed a given business’s cash flow, their repayment history and the fiscal relationship between them and the business. 

Startup Loans 

The success and sudden expansion of startup ventures within India has made it possible for any given startup to consider loans that have been designed keeping in mind their fiscal needs. 

Since startups are essentially businesses at their earliest stage, entrepreneurs behind such operations might not be able to provide lending institutions with a significant credit history. In such instances, lenders take into account an entrepreneur’s personal credit history as well. 

They are also required to provide proof of their business existing, as well as registration details. Varied financial considerations are taken into account when lenders determine the capital they will lend along with the tenure and interest rate applicable. 

Equipment Financing 

This is largely popular with manufacturing businesses or large enterprises that often need to purchase expensive equipment or upgrade their existing machines. 

Business owners are eligible for tax benefits if they avail such loans. Due to the specific nature these loans are allocated for, the equipment itself is treated as collateral along with another security. 

Interest rates for such loans tend to be lower than those charged on term deposits. The interest rates, the loaned amount and repayment plans largely depend on the lender in question. 

Government-Funded Loans and Schemes 

The Indian Government provides an array of loan schemes that target varied entrepreneurs based on their lending requirements, business plans and business size. There exist special loans available to female entrepreneurs as well as those targeting micro, small and medium enterprises (MSMEs). 

These loans are available via a number of financial channels including private and public sector banks, regional rural banks, micro and small finance banks as well as non-banking financial companies. 

Loan schemes offered by the Indian government include, but aren’t limited to, Standup India, Startup India, MSME in 59 minutes and Pradhan Mantri Mudra Yojana. 

Letter of Credit 

Serving as a key factor in international trade, letters of credit are often used by businesses that deal with work overseas. 

They serve as funding guarantees provided by lending institutions on behalf of their borrowers that are made available to foreign entities. 

Letters of credit can be obtained from banks for a fee. They act as an assurance that a buyer’s payment to a seller will be received within the requested time frame and for the full amount. 

Merchant Cash Advances 

Such loans comprise cash advances against future sales. They are popular among businesses that derive a large amount of their revenue from credit card sales. These include restaurants, retail stores and medical offices. Borrowers pay off their debt as and when they sell their wares to customers. 

In order to prevent themselves from experiencing a short-term deficit in their cash flow, small to medium enterprises often avail of these loans. As businesses repay their debt as per their daily sales, the amount deducted from sales each day depends on how many sales occurred. 

Invoice Financing 

Similar to merchant cash advances, these loans provide businesses with fast access to cash. However, they are often availed of at lower interest rates as the loans are set against existing invoices rather than projected sales. 

They are largely popular with small businesses that experience a time lag between providing invoices and receiving payments for the same. Lenders provide funds against amounts raised in the borrower’s invoices. Debts are cleared by businesses once they receive their invoice payments as per predetermined tenure and interest rates. 

In addition to the Indian federal government and private banks that provide business loans, a number of online lenders offer business loans. In the case of nimbly accessible loans, defaulting on recovery has its own consequences.

Consequences of Defaulting on a Business Loan 

Varied scenarios including a drop in sales, overspending and miscalculations can all lead to businesses defaulting i.e., being unable to repay debts including the interest or principal on a loan. Defaults occur when borrowers are unable to stand by their debt obligations and either stop making recurring payments, skip payments or stop making any payments altogether. 

The consequences incurred for defaulting on a business loan depend on whether they were secured or unsecured. 

When Secured Loans Are Defaulted: In the case of the secured loans, foreclosures allow lenders the right to gain control of assets provided as collateral under the loan agreement. This collateral is often auctioned in order to account for the lender’s losses. 

When Unsecured Loans Are Defaulted: In the event that an unsecured loan was defaulted, business owners are charged with a late fee. Lenders may also require personal guarantees or may gain control of a business’s assets. Failure to comply with these requests can result in lenders filing lawsuits against businesses that default. The court then determines how the loan is to be recovered. In the event that the loan continues to remain unpaid, the business in question may have to file for bankruptcy.

Repercussions of defaulting business loans are visible in credit scores. Lenders report failure to pay loan instalments to credit agencies each time business owners are found lacking. This can lead to a drop in credit scores, which in turn can imperil the possibility of future loans being approved.

Inverse to a plummeting credit score is a consequent soaring interest rate based on the stipulated business loan agreement. If the interest rate remains the same, borrowers are subject to exorbitantly priced late fees. This directly affects a borrower’s existing loan repayment and also contributes to their ability to avail of loans in the future. 

Ways to Avoid Defaulting on a Business Loan

In order to avoid defaulting a business loan, entrepreneurs and business owners are advised to observe the following. 

Maintain Reserves: All businesses can incur volatile market conditions. In order to withstand these, maintaining a sufficient business bank account balance is advisable. This balance should ideally include three months’ worth of loan repayments that shouldn’t be allocated towards or spent on anything else.

Diligence About Due Dates: Business loan borrowers must be well aware of dates on which each of their repayments are due such that they are fiscally prepared to pay them. While a sole missed repayment might not directly result in defaulting, it can accrue high fees.

Refinancing: Several lenders allow business loan borrowers to refinance their existing loan by providing them with new interest rates, payment schedules or altering other previously agreed upon terms. 

It is particularly appealing to new businesses as short-term loans often end up hindering the very momentum they initially provide. Numerous lenders are therefore ready to refinance these loans which cover longer periods and ask for smaller instalments. Refinancing is not a solution and only a precautionary measure to remain in the clear.

Borrowers who feel they may not be able to pay upcoming instalments with ease must relay these sentiments to their lenders. This proactive behavior could be rewarded with extended terms. 

Reschedule Debt: In the case of excessive expenses incurred by a business, business owners can reschedule their debt i.e., they can restructure their terms of repayment. This is done by extending the time period required to repay a loan and by increasing the number of times said payments are to be paid. While this has the potential to reduce credit scores, it is preferred to default.

Prioritize Debt Repayment: Repeated loan payments must be given the most priority as they cannot be shirked. All business expenses must be viewed second to it. 

In the event that a business owner cannot avoid defaulting, they must seek legal counsel in order to stay afloat. Borrowers must only borrow what they need and not get ahead of themselves. 

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

Business loans provide borrowers the opportunity to avail lump sum cash or a line of credit to continue to operate and expand their business. These loans are provided based on the understanding that borrowers will pay them back along with the interest. 

This capital is of particular importance to small businesses who can use it to invest in new equipment and supplies, pay their employees or manage the flow of cash until their customers pay them their dues. Here are the types of business loans available and what happens when a borrower fails to pay them back. 

Types of Business Loans in India

Popular business loans available for borrowers include the following:

Term Loan 

Term loans are required to be paid at regular intervals over a set period of time. Accessible in the form of secured or unsecured loans, their capital limit is based on a given business’s credit history. The repayment tenure of term loans determines whether they are classified as short term or long-term loans. 

Short-term loans refer to those loans that last a period of 12 months and tend to have higher interest rates to offset their short repayment period whereas long-term loans constitute a period that can last up to 10 years. 

Once approved for a term loan, lenders provide businesses with capital in a lump sum amount. Businesses normally accrue these debts in order to purchase fixed assets including equipment or investing in a building.

Working Capital Loan 

Businesses often avail of a working capital loan in order to finance their daily operations. Rather than being used to fund long-term assets or investments, working capital loans are used to finance a given business’s short-term operational needs. 

As a collateral-free loan, it doesn’t require lenders to provide any collateral or security with the issuer. They can be used to tide a business over during the off-season and are taken advantage of by businesses that operate with cyclical sales. 

In comparison to long-term loans, working capital loans are provided with a comparatively higher interest rate. Lenders determine the limit of the loans they offer and said capital can only be spent on specified business-related expenses.

Overdraft Loan

Business accounts can take advantage of overdrafts offered by most lending institutions in the event that their accounts have a balance equivalent to zero. Overdrafts thereby allow for businesses to continue to withdraw money even when their accounts have no funds or, when the amount they wish to withdraw surpasses the amount they presently have. 

The interest rate applies only to what is utilized based on the sanctioned limit. Overdraft limits are determined by lenders once they’ve analyzed a given business’s cash flow, their repayment history and the fiscal relationship between them and the business. 

Startup Loans 

The success and sudden expansion of startup ventures within India has made it possible for any given startup to consider loans that have been designed keeping in mind their fiscal needs. 

Since startups are essentially businesses at their earliest stage, entrepreneurs behind such operations might not be able to provide lending institutions with a significant credit history. In such instances, lenders take into account an entrepreneur’s personal credit history as well. 

They are also required to provide proof of their business existing, as well as registration details. Varied financial considerations are taken into account when lenders determine the capital they will lend along with the tenure and interest rate applicable. 

Equipment Financing 

This is largely popular with manufacturing businesses or large enterprises that often need to purchase expensive equipment or upgrade their existing machines. 

Business owners are eligible for tax benefits if they avail such loans. Due to the specific nature these loans are allocated for, the equipment itself is treated as collateral along with another security. 

Interest rates for such loans tend to be lower than those charged on term deposits. The interest rates, the loaned amount and repayment plans largely depend on the lender in question. 

Government-Funded Loans and Schemes 

The Indian Government provides an array of loan schemes that target varied entrepreneurs based on their lending requirements, business plans and business size. There exist special loans available to female entrepreneurs as well as those targeting micro, small and medium enterprises (MSMEs). 

These loans are available via a number of financial channels including private and public sector banks, regional rural banks, micro and small finance banks as well as non-banking financial companies. 

Loan schemes offered by the Indian government include, but aren’t limited to, Standup India, Startup India, MSME in 59 minutes and Pradhan Mantri Mudra Yojana. 

Letter of Credit 

Serving as a key factor in international trade, letters of credit are often used by businesses that deal with work overseas. 

They serve as funding guarantees provided by lending institutions on behalf of their borrowers that are made available to foreign entities. 

Letters of credit can be obtained from banks for a fee. They act as an assurance that a buyer’s payment to a seller will be received within the requested time frame and for the full amount. 

Merchant Cash Advances 

Such loans comprise cash advances against future sales. They are popular among businesses that derive a large amount of their revenue from credit card sales. These include restaurants, retail stores and medical offices. Borrowers pay off their debt as and when they sell their wares to customers. 

In order to prevent themselves from experiencing a short-term deficit in their cash flow, small to medium enterprises often avail of these loans. As businesses repay their debt as per their daily sales, the amount deducted from sales each day depends on how many sales occurred. 

Invoice Financing 

Similar to merchant cash advances, these loans provide businesses with fast access to cash. However, they are often availed of at lower interest rates as the loans are set against existing invoices rather than projected sales. 

They are largely popular with small businesses that experience a time lag between providing invoices and receiving payments for the same. Lenders provide funds against amounts raised in the borrower’s invoices. Debts are cleared by businesses once they receive their invoice payments as per predetermined tenure and interest rates. 

In addition to the Indian federal government and private banks that provide business loans, a number of online lenders offer business loans. In the case of nimbly accessible loans, defaulting on recovery has its own consequences.

Consequences of Defaulting on a Business Loan 

Varied scenarios including a drop in sales, overspending and miscalculations can all lead to businesses defaulting i.e., being unable to repay debts including the interest or principal on a loan. Defaults occur when borrowers are unable to stand by their debt obligations and either stop making recurring payments, skip payments or stop making any payments altogether. 

The consequences incurred for defaulting on a business loan depend on whether they were secured or unsecured. 

When Secured Loans Are Defaulted: In the case of the secured loans, foreclosures allow lenders the right to gain control of assets provided as collateral under the loan agreement. This collateral is often auctioned in order to account for the lender’s losses. 

When Unsecured Loans Are Defaulted: In the event that an unsecured loan was defaulted, business owners are charged with a late fee. Lenders may also require personal guarantees or may gain control of a business’s assets. Failure to comply with these requests can result in lenders filing lawsuits against businesses that default. The court then determines how the loan is to be recovered. In the event that the loan continues to remain unpaid, the business in question may have to file for bankruptcy.

Repercussions of defaulting business loans are visible in credit scores. Lenders report failure to pay loan instalments to credit agencies each time business owners are found lacking. This can lead to a drop in credit scores, which in turn can imperil the possibility of future loans being approved.

Inverse to a plummeting credit score is a consequent soaring interest rate based on the stipulated business loan agreement. If the interest rate remains the same, borrowers are subject to exorbitantly priced late fees. This directly affects a borrower’s existing loan repayment and also contributes to their ability to avail of loans in the future. 

Ways to Avoid Defaulting on a Business Loan

In order to avoid defaulting a business loan, entrepreneurs and business owners are advised to observe the following. 

Maintain Reserves: All businesses can incur volatile market conditions. In order to withstand these, maintaining a sufficient business bank account balance is advisable. This balance should ideally include three months’ worth of loan repayments that shouldn’t be allocated towards or spent on anything else.

Diligence About Due Dates: Business loan borrowers must be well aware of dates on which each of their repayments are due such that they are fiscally prepared to pay them. While a sole missed repayment might not directly result in defaulting, it can accrue high fees.

Refinancing: Several lenders allow business loan borrowers to refinance their existing loan by providing them with new interest rates, payment schedules or altering other previously agreed upon terms. 

It is particularly appealing to new businesses as short-term loans often end up hindering the very momentum they initially provide. Numerous lenders are therefore ready to refinance these loans which cover longer periods and ask for smaller instalments. Refinancing is not a solution and only a precautionary measure to remain in the clear.

Borrowers who feel they may not be able to pay upcoming instalments with ease must relay these sentiments to their lenders. This proactive behavior could be rewarded with extended terms. 

Reschedule Debt: In the case of excessive expenses incurred by a business, business owners can reschedule their debt i.e., they can restructure their terms of repayment. This is done by extending the time period required to repay a loan and by increasing the number of times said payments are to be paid. While this has the potential to reduce credit scores, it is preferred to default.

Prioritize Debt Repayment: Repeated loan payments must be given the most priority as they cannot be shirked. All business expenses must be viewed second to it. 

In the event that a business owner cannot avoid defaulting, they must seek legal counsel in order to stay afloat. Borrowers must only borrow what they need and not get ahead of themselves. 

This news is published as it is from the publisher’s website. Please click here to read the article on the source website.

early payments program for suppliers

Offered in partnership with our enterprise anchor clients and financial institutions

Unlocking Capital. Creating Opportunities.

Our focus is to make it easy for large enterprises to facilitate on-demand working capital for their suppliers, using our trade finance expertise, user friendly technology platform and partnerships with 3rd party capital provider

01

Balancing priorities of maintaining days payable with strengthening supplier relationships

02

Addressing persistent follow-ups from suppliers for invoice payments

03

Negotiating cash discounts for early payments bilaterally with each individual supplier

04

Early payments to suppliers can exert pressure on working capital

05

Mismatched receivables and payables cycles

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

01

Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments

02

Pressure on funding limits a supplier’s ability to pursue business growth

03

Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations

04

Traditional lending may require collateral, guarantees and incurrence of fixed costs

05

Reliance on informal lending sources can prove to be prohibitively expensive

06

To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program

Introducing CredAble’s dynamic discounting receivables exchange platform (DDRX)

A technology platform that makes it easy for large enterprises to facilitate on-demand working capital

We have structured a product that allows complete control for the enterprise to process the early payments, and ease for suppliers to request for early working capital.

STEP 1

ERP Integration

The Early Payment platform is customized and integrated with the ERP system of the enterprise client. The platform acts as a digital marketplace for each supplier of the anchor enterprise

STEP 2

Upload Invoices

The anchor enterprise uploads all approved invoices onto the marketplace for suppliers to be able to request early payment of their invoices

STEP 3

Early Payment Request

Suppliers activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital

STEP 4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests

STEP 5

Access to Capital

The CredAble platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account

STEP 6

Enterprise Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider

4

Requests Approval

Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests.

5

Access to Capital

The Credable platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account.

6

Actual Payment

On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider.

Benefits of the early payments for suppliers

CredAble Advantages

Creating a dynamic working capital marketplace anchored around Enterprise Clients

Supplier Confidence

Stronger trade relationships with suppliers

Flexibility

Flexibility to maintain or extend days payable while suppliers are paid early

Best Rate Algorithm

CredAble's marketplace dynamics drive ‘best rate’ discovery on supplier offered discounts and cost of 3rd party capital 

Built for Scale

Platform is built to engage with suppliers on a large scale

Digital User Experience 

Documentation, record keeping and reconciliation with ERPs is digital

CredAble Advantages

Funding for suppliers is always just a few clicks away

Debt Free Working Capital

All suppliers are eligible to participate and grow their businesses without borrowing

Specify Your Own Rate

Suppliers can specify their discount rate that is appropriate for their business to commensurate the payment acceleration needed.

No Hidden Costs

Suppliers access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble's relationship managers will assist suppliers through the process

Complete Transparency

The platform provides complete data transparency to suppliers with regards to invoice and payment related data 

CredAble Advantages

Trade financing products deployed at scale

Access to New Enterprise Clients

Access to blue-chip ‘new-to-bank’ enterprise clients

Scalable Technology

Efficient technology platform to pursue large scale trade finance opportunities with existing and new clients

Cross-sell Opportunities

Cross-sell opportunities across product lines

Let's work together

Are you looking for a Supply Chain Finance solution?

OUR FEATURES

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SPACE

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FULLY RESPONSIVE

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technology

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[lightbox id="inquiry-popup" width="600px" padding="20px"]
[ninja_form id=2]
[/lightbox]

UNLOCK WORKING CAPITAL
WITHIN DAYS.

Our Invoice Financing solution enables you to opt for short-term collateral free working capital based on your unpaid invoices. This helps you to maintain a healthy cash-flow balance and liquidity for your business growth.

How CredAble Invoice Financing Works

UNLOCK WORKING CAPITAL
WITHIN DAYS

Our Invoice Financing solution enables you to opt for short-term collateral free working capital based on your unpaid invoices. This helps you to maintain a healthy cash-flow balance and liquidity for your business growth.

Running short on time ?

Drop your details and we will get back to you!

[ninja_form id=21]

Running short on time ?
Drop your details and we will get back to you!

[ninja_form id=21]

Why Is Invoice Financing Required

Double Benefit From CredAble

Awarded as the best Startup in FinTech category, the digital platform of CredAble is bringing disruptions in the supply chain working capital space. You can not only opt for a short term collateral free working capital based on your unpaid invoices, but also onboard all your vendors into our easy digital platform to pay their invoices before the due dates using our bill discounting capability.

CredAble offers up to 80% of the invoice value to the businesses within a day of the invoices being validated by the payee companies. Funds can be raised on a daily, weekly or monthly basis. The suppliers can return the payment to CredAble as per the normal invoicing cycle through an escrow account mechanism.

Benefits of Invoice Financing

Get working capital finance in 24-72 hours.

Leverage your unpaid invoices without pledging assets.

Quick, easy and hassle-free process to secure funds.

Receive timely access to capital & speed up your cash cycles.

Allows bigger corporates to extend payment terms and vendors to get paid earlier.

Advantages of Invoice Based Working Capital

Advantages for you as a Seller

• Availability of cash at day 1 of invoice without blocking working capital and without waiting for credit terms of 30-60-90 days to get the payments.
• Deploy back fund available in business and run more business cycle with the available fund resulting in growth in business.
• Use the fund to avail cash discounts from their supplier, to pay statutory dues, GST liability, or office expenditure.

[lightbox id="eligibility-lightbox" width="800px" padding="3px"]
[block id="eligibility"][/lightbox]

• Availability of cash at day 1 of invoice without blocking working capital and without waiting for credit terms of 30-60-90 days to get the payments.
• Deploy back fund available in business and run more business cycle with the available fund resulting in growth in business.
• Use the fund to avail cash discounts from their supplier, to pay statutory dues, GST liability, or office expenditure.

[lightbox id="eligibility-2-lightbox" width="800px" padding="3px"]
[block id="eligibility-2"][/lightbox]

Advantages for you as a Buyer

Features Of Invoice Financing Solution

Early Payment Program For Large E-commerce Companies By CredAble™

CredAble has partnered with various large e-commerce companies to facilitate early payment of approved invoices of their suppliers.

The early payment program facilitates early payment of approved invoices raised on e-commerce companies in exchange of a small bill discount. It will unlock working capital and enhance your cash-flows to grow your business

How It Works?

1. A supplier can register through an easy on-boarding process
2. E-commerce companies will share all the approved invoices and accepted purchase orders on the CredAble platform.
3. On request, supplier will receive early payment in the designated bank account in the next working day

Benefits of the Early Payments Program by Credable

Debt Free
Working Capital

All suppliers are eligible to participate and grow their businesses without borrowing

No Hidden Costs

Suppliers access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble's relationship managers will assist suppliers through the process

Complete Transparency

The platform provides complete data transparency to suppliers with regards to invoice and payment related data

Benefits of the Early Payments Program by CredAble

Have Questions?

• +91 9372766919 (Monday – Friday, 10 AM to 6 PM),
• ve@credable.in

© CredAble 2021

Early Payment Program For Vendors Of Large E-commerce Companies

CredAble partners with various large e-commerce companies to facilitate early payment of approved vendor invoices.

The program facilitates early payment of approved invoices in exchange of a small bill discount which unlocks working capital and enhances your cash-flows.

Media Coverage

CredAble as India's leading FinTech Company has been featured by top Media houses.

Have Questions?

• +91 9372766919 (Monday – Friday, 10 AM to 6 PM),
• ve@credable.in

© CredAble 2021

Early Payment Program For Large E-commerce Companies By CredAble™

CredAble has partnered with various large e-commerce companies to facilitate early payment of approved invoices of their suppliers.

The early payment program facilitates early payment of approved invoices raised on e-commerce companies in exchange of a small bill discount. It will unlock working capital and enhance your cash-flows to grow your business

How It Works?

1. A supplier can register through an easy on-boarding process
2. E-commerce companies will share all the approved invoices and accepted purchase orders on the CredAble platform.
3. On request, supplier will receive early payment in the designated bank account in the next working day

Benefits of the Early Payments Program by Credable

Debt Free
Working Capital

All suppliers are eligible to participate and grow their businesses without borrowing

No Hidden Costs

Suppliers access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble's relationship managers will assist suppliers through the process

Complete Transparency

The platform provides complete data transparency to suppliers with regards to invoice and payment related data

Benefits of the Early Payments Program by CredAble

Have Questions?

• +91 9372766919 (Monday – Friday, 10 AM to 6 PM),
• ve@credable.in

© CredAble 2021

Early Payment Program For Large E-commerce Companies By CredAble™

CredAble has partnered with various large e-commerce companies to facilitate early payment of approved invoices of their suppliers.

The early payment program facilitates early payment of approved invoices raised on e-commerce companies in exchange of a small bill discount. It will unlock working capital and enhance your cash-flows to grow your business

How It Works?

1. A supplier can register through an easy on-boarding process
2. E-commerce companies will share all the approved invoices and accepted purchase orders on the CredAble platform.
3. On request, supplier will receive early payment in the designated bank account in the next working day

Benefits of the Early Payments Program by Credable

Debt Free
Working Capital

All suppliers are eligible to participate and grow their businesses without borrowing

No Hidden Costs

Suppliers access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble's relationship managers will assist suppliers through the process

Complete Transparency

The platform provides complete data transparency to suppliers with regards to invoice and payment related data

Benefits of the Early Payments Program by CredAble

Have Questions?

• +91 9372766919 (Monday – Friday, 10 AM to 6 PM),
• ve@credable.in

© CredAble 2021

Early Payment Platform For Vendors Of Large E-commerce Companies

CredAble partners with various large e-commerce companies to facilitate early payment of approved vendor invoices.

The program facilitates early payment of approved invoices in exchange of a small bill discount which unlocks working capital and enhances your cash-flows.

Introducing Early Payment Platform By CredAble

How It Works?

1. Vendor registers through an easy on-boarding process.
2. E-commerce company shares all approved invoices and accepted purchase orders on the CredAble platform.
3. Vendor receives early payment in the designated bank account on the following day.

Benefits of the Early Payments Program by Credable

Debt Free
Working Capital

All suppliers are eligible to participate and grow their businesses without borrowing

No Hidden Costs

Suppliers access working capital at fair discounting rates without any hidden costs

Ease Of Registration

Account registration is free, simple and quick. CredAble's relationship managers will assist suppliers through the process

Complete Transparency

The platform provides complete data transparency to suppliers with regards to invoice and payment related data

Benefits of the Early Payments Platform by CredAble

Media Coverage

CredAble as India's leading FinTech Company has been featured by top Media houses.

For any queries, kindly e-mail us at

• +91 9372766919 (Monday – Friday, 10 AM to 6 PM),
• ve@credable.in

© CredAble 2021

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices

A technology platform which enables collateral free finance for purchase orders issued by anchors

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working capital financing programs customized to each client.

World-class technology platform to provide scalability, intuitive UX, robust data security and advanced data analytics.

Seasoned in-house relationship team to deploy strategies to drive recurring participation by beneficiaries.

Awards and Recognition

Best Supply Chain Finance Solution of 2019

CredAble received the award for the “Best Supply Chain Finance Technology Solution of the Year” at Inflection 2019, a Digital, Supply Chain, Logistics and Procurement Summit

Incubated by Oracle Startup Cloud Accelerator

CredAble was selected in the Oracle Startup Accelerator Program – Mumbai Cohort. Oracle's global startup program enables growth and drives cloud-based innovations for startups

Best Start-up in the Fintech Category 2018

Out of the 100 startups that participated in Maharashtra Startup Week, CredAble won the top position where our team showcased the Early Payment Program for Suppliers to an elite panel

NASSCOM Startup Awards

Emerge 50 Awards is India’s most prestigious & prominent awards in the Software Product Industry, with the mission to find and recognize the most innovative software product companies

SAP Startup Accelerator

Every year SAP selects 16 startups who get guidance from the SAP experts, an opportunity to co-innovate with teams and access to the partner ecosystem. SAP Startup Studio aims to build a platform

Credable in the Media

CredAble is at the forefront of innovation in supply chain finance

Business insights

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices

A technology platform which enables collateral free finance for purchase orders issued by anchors

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working capital financing programs customized to each client.

World-class technology platform to provide scalability, intuitive UX, robust data security and advanced data analytics.

Seasoned in-house relationship team to deploy strategies to drive recurring participation by beneficiaries.

Awards and Recognition

Best Supply Chain Finance Solution of 2019

CredAble received the award for the “Best Supply Chain Finance Technology Solution of the Year” at Inflection 2019, a Digital, Supply Chain, Logistics and Procurement Summit

Incubated by Oracle Startup Cloud Accelerator

CredAble was selected in the Oracle Startup Accelerator Program – Mumbai Cohort. Oracle's global startup program enables growth and drives cloud-based innovations for startups

Best Start-up in the Fintech Category 2018

Out of the 100 startups that participated in Maharashtra Startup Week, CredAble won the top position where our team showcased the Early Payment Program for Suppliers to an elite panel

NASSCOM Startup Awards

Emerge 50 Awards is India’s most prestigious & prominent awards in the Software Product Industry, with the mission to find and recognize the most innovative software product companies

SAP Startup Accelerator

Every year SAP selects 16 startups who get guidance from the SAP experts, an opportunity to co-innovate with teams and access to the partner ecosystem. SAP Startup Studio aims to build a platform

Credable in the Media

CredAble is at the forefront of innovation in supply chain finance

Business insights

Knowledge is power. We document our experience, interesting case studies and research to offer valuable insights for our stakeholders

Improved cash flow

management

Your Trusted Supply Chain

Financing
Platform

Accelerating working capital

powering
growth

Building working capital as a new

investment
class

Working capital

on tap
 

just-in-time

working
capital

Bridging Working Capital

Fuelling Growth

OUR SOLUTIONS

CredAble enables working capital for India Inc.

CredAble is reimagining working capital financing by providing liquidity programs for enterprise eco-systems using state-of-the-art technology platforms, digital KYC and onboarding, deep ERP and bank integrations, along with digital documentation and transaction management.

Leveraging trade finance expertise, partnerships with capital providers and leading technology and data analytics, we are able to provide comprehensive working capital financing solutions to leading corporates across Asia in areas of Payables Financing, Receivables Financing and Securitization, Debt Capital Markets and SME Financing.

We use our trade finance expertise, partnerships with capital providers and world-class technology platforms to deliver largescale supply chain funding programs including invoice discounting, bill discounting and a host of other working capital solutions efficiently.

A digital platformfor enterprise clients to offer customized early payment programs for their vendors.

A digital platform for enterprises to monetize their receivables while offering credit extensions to their distributors, dealers and retailer networks.

A technology enabled financing platform for vendors of large enterprises to access pre-invoicefunding based on milestones.

Enables businesses to tap short-term collateral-free working capital tied up with the unpaid invoices

A technology platform which enables collateral free finance for purchase orders issued by anchors

A digital supplier portal for enterprises to improve cash flow management across their supply chain including vendors and distributors

BUILDING BLOCKS AT THE CORE OF OUR OFFERINGS

scale ability

Our trade finance expertise allows us to structure bespoke, scalable working capital solutions for enterprise trade flows.

tech ability

Our robust technology infrastructure enables an intuitive user experience, superior security features and seamless integration.

cred ability

Our proprietary balance sheet as a NBFC and network of global capital providers, gives us the credibility to deliver.

Why choose us

On-demand access to working capital for participants in enterprise supply chains

Full spectrum of working capital programs catering to payables and receivables cycles of our clients.

Multi-funder capability through partnerships with leading global financial institutions.

Flexible product structuring capabilities with off-balance sheet opportunities.

Digital trade finance with automated transaction documentation and integration with all leading ERPs.

Deep trade finance expertise in designing built-to-suit working