Equentia Financial, CredAble’s wholly-owned subsidiary, will target untapped lending opportunities within India’s supply chain ecosystems.
After gaining traction with some of India’s leading corporates, the NBFC license will allow CredAble to lend directly to SMEs and MSMEs and access debt markets to optimise its capital structure, providing suppliers with increased access to on-tap funding and untapped lending opportunities such as pre-invoice stage financing within India’s corporate supply chains.
Commenting on the approval of CredAble’s NBFC license application by the RBI, Co- Founder and CEO – CredAble, Mr. Nirav Choksi said that, “CredAble will use its NBFC status to provide short-term working capital solutions to suppliers in select eco-systems which tend to experience mismatched receivables and payables cycles. Oftentimes, these suppliers have limited access to bank financing or simply fall short of the credibility to be deemed ‘bankable’ and therefore have limited or no access to funds. CredAble fills this void by providing liquidity options during the pre-invoice and post-invoice phases.”
In the emerging FinTech sector, some of the most prominent buzzwords are Blockchain, Big Data, IoT (Internet of Things), etc., prompting investors to back the most tech-enabled businesses. While a lot of these companies focus on B2C business models, some of the biggest innovations in FinTech are also taking place in the B2B segment.
CredAble is leveraging its trade finance expertise, robust technology development capabilities and its access to 3rd party capital to reimagine supply chain finance in India. It connects large corporations, and their suppliers and distributors to third party capital providers through its supply chain technology platform and arranges funding programs linked to transactions within the corporate supply chain. The programs result in win-win outcomes for all supply chain participants.
CredAble is also harnessing the power of blockchain and big data to improve its value proposition for its platform participants. The company partnered with MonetaGo, to participate on its block-chain platform which prevents double-financing of invoices and mitigates trade finance fraud.
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