There are mul­ti­ple fi­nanc­ing op­tions avail­able for SMEs to grow their busi­nesses

PCQuest - - COVER STORY - Ankit Parashar ankitp@cy­ber­me­

The busi­ness fi­nanc­ing land­scape is con­tin­u­ally chang­ing, with more op­tions avail­able to busi­ness own­ers than ever be­fore. About half to two-thirds of these busi­nesses seek fi­nanc­ing from a num­ber of places, from owner in­vest­ments to non-bank sources. As small busi­nesses con­tinue to face chal­lenges when it comes to gain­ing ac­cess to cap­i­tal and tak­ing ad­van­tage of op­por­tu­ni­ties to grow, it’s im­por­tant that they are seek­ing the right type of fi­nanc­ing for their par­tic­u­lar needs. There’s been a lot of fo­cus on “al­ter­na­tive” lend­ing re­cently, but how do busi­ness own­ers know when this is the right op­tion to pur­sue?

One of the most ob­vi­ous and com­mon an­swers is that busi­nesses seek fi­nanc­ing when they’re faced with an un­ex­pected op­por­tu­nity or chal­lenge that re­quires quick cap­i­tal.

Talk­ing about the SME’s, have lots of op­tions for ac­cess­ing cap­i­tal. More­over, they of­ten face re­sis­tance from tra­di­tional op­tions. This sec­tor has been strug­gling to keep up with mar­ket tran­si­tions.

A SME re­quire timely and ad­e­quate cap­i­tal in­fu­sion through term loans and work­ing cap­i­tal loans, par­tic­u­larly dur­ing the early and growth stages. His­tor­i­cally the MSMEs have re­lied on fol­low­ing sources for fi­nanc­ing their needs

Tab Cap­i­tal

For MSMEs, TAB Cap­i­tal pro­vides a wide range of fi­nan­cial so­lu­tions based on their di­ver­si­fied busi­ness needs. It cur­rently pro­vides loan prod­ucts like • Machin­ery/ Equip­ment Loan, • Mer­chant Cash Ad­vance – Loan against POS Ma­chine Trans­ac­tions, • Work­ing Cap­i­tal De­mand Loan – To meet the work­ing cap­i­tal re­quire­ment of MSMEs • Unse­cured Busi­ness Loans - Multi Pur­pose Busi­ness Loan to serve var­i­ous fi­nan­cial re­quire­ments in the MSME seg­ment. • Loan Against Prop­erty (In­dus­trial/Com­mer­cial/ Res­i­den­tial)

• Loan to Pro­fes­sion­als (CA, CS, Doc­tors, Ar­chi­tect) The com­pany is al­ways on a hunt to de­sign new prod­ucts in or­der to cater to di­ver­si­fied needs. It also pro­vides the fa­cil­ity to give top– up on the loans every 6 months or pro­vide an ex­tended line of credit for their cus­tomers.

Talk­ing about the cri­te­ria, rules and guide­lines to avail the cap­i­tal CA Ab­hay Bhutada, Chair­per­son & MD, TAB Cap­i­tal high­lighted, “At TAB Cap­i­tal, we fo­cus on cer­tain ba­sic and im­por­tant cri­te­ria like Age of ap­pli­cant should be in be­tween 21 - 55 years, Busi­ness vin­tage should be more than 2 years & busi­ness an­nual turnover should ex­ceed 15 Lakhs which are im­per­a­tive in pro­vid­ing the ba­sic ap­proval in­stead of get­ting into the has­sles of the lengthy ap­proval process”.

TAB Cap­i­tal an­a­lyzes the credit wor­thi­ness of a busi­ness be­fore ap­proval of loan by un­der­stand­ing be­low pa­ram­e­ters.

Busi­ness Model & Scal­a­bil­ity, Debt/Equity of Busi­ness ,Bank­ing ,Dig­i­tal & Cash Sales ,So­cial Check, Credit Bureau check (CIBIL, EQUIFAX, HIGHMARK, EXPERIAN), Busi­ness Net­worth, Ed­u­ca­tional /Tech­ni­cal Qual­i­fi­ca­tion of Ap­pli­cant

TAB Cap­i­tal of­fers multi-pur­pose Busi­ness Loans which is de­signed as per the busi­ness need of Mi­cro, small & Medium En­ter­prises.

Machin­ery Loan

Machin­ery Loan is a tai­lored fi­nan­cial prod­uct which helps MSME’s to raise fi­nance­for new & old machin­ery to take care of ex­pan­sion and pro­duc­tion needs. TAB Cap­i­tal Lim­ited of­fers quick Machin­ery Loan for Mi­cro, medium and small-scale man­u­fac­tur­ing units which are in need for ur­gent cap­i­tal for buy­ing and up­grad­ing equip­ment and also for in­creas­ing over­all pro­duc­tiv­ity.

Unse­cured Busi­ness Loan

TAB Cap­i­tal com­mit­ted to pro­vid­ing unse­cured busi­ness loans for MSMEs. Every Busi­ness has three stages to fol­low: plan­ning, im­ple­men­ta­tion, and ex­pan­sion be­fore it at­tains the ma­tu­rity of be­ing called as a suc­cess­ful com­pany, and for each stage, an en­tre­pre­neur needs fi­nan­cial in­de­pen­dence.

“At TAB cap­i­tal, we work to­wards pro­vid­ing the fi­nan­cial in­de­pen­dence and our cus­tom­ize unse­cured small busi­ness loan aims to pro­vide the right an­swer to MSME’s fi­nan­cial prob­lems based on their needs”, Ab­hay added.

Mer­chant Cash Ad­vance is a unique of­fer­ing from TAB Cap­i­tal Lim­ited which helps Re­tail­ers/Traders & Res­tau­rant Own­ers to con­vert fu­ture POS card swipes into cur­rent cash flows.

Re­tail­ers, traders, and res­tau­rant own­ers can avail Mer­chant Cash Ad­vance, if they ac­cept credit or debit card pay­ment for the daily busi­ness trans­ac­tions. Mer­chant Cash Ad­vance for small busi­nesses can be used for ex­e­cu­tion of var­i­ous busi­ness ac­tiv­i­ties and sat­isfy their short-term op­er­a­tional re­quire­ments.

Work­ing Cap­i­tal De­mand Loan

We of­fer Work­ing Cap­i­tal Loan for MSMEsthat are tai­lored to their fi­nan­cial needs and help busi­nesses grab op­por­tu­ni­ties, take care of im­me­di­ate needs and also grow to greater heights. The Work­ing Cap­i­tal De­mand Loan is de­signed im­pec­ca­bly for meet­ing all re­quire­ments right from In­ven­tory Pur­chases, Equip­ment Needs, Mar­ket­ing Op­por­tu­ni­ties, Short-term cap­i­tal needs, And more!

Loan against Prop­erty

TAB Cap­i­tal Lim­ited Of­fers Loan against Prop­erty across res­i­den­tial/com­mer­cial/in­dus­trial prop­er­ties and MSMEs can now get ac­cess to de­sired amount for tak­ing care of Busi­ness goals. In­stead of let­ting their prop­erty sit as a dead as­set, they can tap into the un­used value of the same to ob­tain swift fund­ing.

Loan to Pro­fes­sional

TAB Cap­i­tal Lim­ited of­fers tai­lor made loans for pro­fes­sion­als in­clud­ing char­tered ac­coun­tants, com­pany sec­re­taries, doc­tors, ar­chi­tects, con­sul­tants and other prac­tic­ing pro­fes­sion­als. These loans are aimed at help­ing pro­fes­sion­als grow their prac­tices, buy new prop­er­ties for set­ting up of­fices, re­model and re­vamp ex­ist­ing of­fices and also for for­ay­ing into new busi­ness do­mains. These unique loans are of­fered with at­trac­tive rates of in­ter­est for greater con­ve­nience.

Who and How to get the loan?

A fun­da­men­tal prin­ci­ple of TAB’s dig­i­tal lend­ing plat­form

“At TAB Cap­i­tal, we fo­cus on cer­tain ba­sic and im­por­tant cri­te­ria like Age of ap­pli­cant should be in be­tween 21 - 55 years, Busi­ness vin­tage should be more than 2 years & busi­ness an­nual turnover should ex­ceed 15 Lakhs which are im­per­a­tive in pro­vid­ing the ba­sic ap­proval in­stead of get­ting into the has­sles of the lengthy ap­proval process”

is that any­one with in­ter­net ac­cess can ap­ply on­line for a loan and be as­sessed ac­cord­ingly.

For MSMEs, the lend­ing process can be a strin­gent task to fol­low, so TAB Cap­i­tal have cre­ated a sim­ple dig­i­tal lend­ing process where a cus­tomer can eas­ily ap­ply for a loan, up­load re­quired doc­u­ments on­line & get dis­burse­ment in 2 work­ing days af­ter ver­i­fi­ca­tion & as­sess­ment.

This process re­mod­els the lengthy loan pro­cesses into a com­pletely dig­i­tal so­lu­tion which is fast and cus­tomer- cen­tric and hence ben­e­fi­cial to the bor­rower since it is au­to­mated and stream­lined.

In­cred Fi­nance

In­Cred of­fers a wide suite of prod­ucts de­signed with a sharp fo­cus on meet­ing the var­ied needs of the SME in­dus­try. They of­fer short term work­ing cap­i­tal loans, in­voice fi­nanc­ing (45-60 days), and medium term unse­cured loans (24-36 months) and long term se­cured term loans (up to 10 years).

In­cred’s loan prod­ucts are flex­i­ble and can be tai­lor­made to suit the unique re­quire­ments and busi­ness cy­cles of each bor­rower. For ex­am­ple for IT sup­ply chain prod­uct, com­pany pro­vide fi­nanc­ing both against reg­u­lar stock and sell model be­sides pro­vid­ing one-time fi­nanc­ing for lumpy ten­der based busi­ness re­quire­ments.

Sau­rabh Jhalaria – CEO, SME Busi­ness, In­Cred said, “We strongly be­lieve in bring­ing a hu­man ap­proach to lend­ing. De­liv­ery of a su­pe­rior and seam­less cus­tomer ex­pe­ri­ence across all touch points is ex­tremely crit­i­cal for us.”

Talk­ing about the pa­ram­e­ters and cri­te­ria to get the fi­nance, In­Cred un­der­stand that an in­ad­e­quate credit

Ab­hay Bhutada Chair­per­son & MD, TAB Cap­i­tal

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