MSMEs Are Now Enjoying Access To Quick Credit To Meet Festive Demand

Gold loans are particularly advantageous because they offer quick disbursement, allowing businesses to access funds almost immediately, often within 30 minutes. Unlike other forms of credit, gold loans do not require a high credit score

Fintech solutions assist MSMEs in getting funds quickly by providing quicker approvals with less paperwork. Furthermore, government-backed initiatives like Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the Mudra Loan offer easily accessible and reasonably priced lending choices, enabling businesses to expand and derive profits from holiday sales.

MSMEs encounter a surge in demand over holidays, necessitating fast finance for inventory and operational requirements. They can obtain working capital loans, invoice discounting, and business credit lines from banks and online lending platforms in order to meet this demand.

Talking to Bizz Buzz, Mehak Srivastava, head of marketing in SahiBandhu gold loan aggregator platform, says, “As the festive season approaches, MSMEs experience a surge in demand, requiring quick access to funds. Ensuring sufficient cash flow to cover everyday operations, pay suppliers, and manage unexpected expenses can be quite daunting. Stocking up on inventory to meet increased demand necessitates significant upfront capital.”

In comparison, other forms of credit like business loans often come with several challenges. These include high qualification standards, complex loan applications, and long approval times, often taking a minimum of 20 days. Businesses may also face high interest rates and the need for comprehensive financial documentation. Moreover, a good credit score is typically required, which can be a barrier for many MSMEs.

Gold loans are particularly advantageous because they offer quick disbursement, allowing businesses to access funds almost immediately, often within 30 minutes. Unlike other forms of credit, gold loans do not require a high credit score, making them accessible to a broader range of businesses. Additionally, the value of gold tends to remain stable or appreciate over time, providing a secure form of collateral.

SahiBandhu gold loan offers a seamless solution for MSMEs, featuring low interest rates through leading banks, minimal documentation, and flexible repayment options. By leveraging gold assets, businesses can swiftly secure the necessary capital to manage inventory, cash flow, and operational expenses. It also ensures that MSMEs can efficiently meet festive demand, driving growth and prosperity during peak seasons.

Roshan Shah, co-founder and MD of VoloFin, says, “As the festive season approaches, MSMEs often face increased demand, requiring quick access to capital to meet production and operational needs. Invoice factoring companies offer a fast, efficient solution for these businesses to unlock cash tied up in unpaid invoices. Instead of waiting 30, 60 or 90 days for payments, MSMEs can sell their receivables to a factoring company and get immediate funds.”

This ensures that MSMEs can purchase raw materials, ramp up inventory and manage payroll during peak demand without relying on traditional bank loans, which are often slow and cumbersome. Additionally, invoice factoring requires no collateral and doesn't add debt to the balance sheet, making it an attractive option for MSMEs looking to maintain healthy cash flow during the festive season. The streamlined process and flexibility offered by factoring companies help businesses meet demand without feeling any financial strain.