6 FinTechs digitising Invoice financing for MSMEs in India
By Gloria Mathias
Invoice financing is a short-term borrowing option that allows MSMEs to borrow money against unpaid invoices. This can help businesses meet short-term liquidity needs, such as paying employees and suppliers, purchasing inventory, and repaying debt.
Fintech companies can help small and medium-sized enterprises access funding based on their invoices. Fintech companies can also provide digital transaction records that can be used as proof of income and loan repayment capabilities.
Invoice financing can help businesses improve cash flow and pay employees and suppliers. It can also help businesses reinvest in operations and growth earlier than they could if they had to wait until their customers paid their balances in full.
Listed below are 6 FinTechs facilitating invoice processing for MSMEs in India:
Bulk Udhaar is a FinTech startup based out of Mumbai. It is India’s digital invoice financing marketplace for working capital, addressing a $300 billion market for SME credit in India. It helps small businesses gain access to collateral-free short-term capital on tap. Bulk Udhaar is simplifying invoice financing to be fast, convenient, and transparent.
Cashinvoice is a digital marketplace that unlocks supply chain finance for small businesses. By leveraging technology, the Cashinvoice platform links financial institutions, large corporations, and their MSME supply chain partners to extend working capital by offering embedded lending products to grow and scale.
Canopi is an online marketplace for short-term, collateral-free loans for MSMEs. Its mission is to help small businesses get loans based on their invoices. Small businesses can quickly register on our platform and get short-term loans for their invoices. The loans are then repaid on the due date when the customer pays them for their invoice.
Falcon is the Invoice discounting platform in India, where it connects blue-chip companies with investors. It aims to revolutionise the investment market in India by creating a one-stop shop for all borrowers and investors with varied profiles and needs who can have access without any risk. Unlike banks and financial institutions, Falcon increases investors’ yields by eliminating mediators like commercial banks, depository institutions, etc.
Invoicemart is a digital invoice discounting platform, a joint venture between Axis Bank and B2B eCommerce company mjunction. It is a platform that connects MSME suppliers (sellers) and their corporate buyers to multiple financiers. The platform allows MSME suppliers to avail loans quickly and at competitive interest rates, which will in turn help increase their working capital efficiency without impacting their relationship with their buyers.
Zuron is a SaaS-based supply chain finance platform startup assisting in financing working capital in India. The FinTech’s system enables SMEs to use their invoices as assets and get them funded through various NBFCs or banks. As a supply chain finance startup, it aims to deliver financing solutions to its customers by providing immediate advances on their business receivables.
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