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Rahul TalwarParticipant
Personally, I’m thrilled to see the positive response from stakeholders and industry experts regarding the new FLDG guidelines introduced by RBI. These guidelines provide much-needed clarity to the relationship between REs and LSPs, making it an enabling move by the regulator.
As a fintech community member, I’m excited about the potential impact of these guidelines. They serve as a catalyst for expanding micro-sized loans and fostering inclusivity in lending. Transparency is enhanced by requiring LSPs to publish guarantee arrangement details on their websites.
The directive to invoke the First Loss Default Guarantee within 120 days emphasizes timely resolution of defaults, benefiting both lenders and borrowers. These guidelines are expected to foster healthy competition, lower lending rates through robust underwriting platforms, and drive further improvements in the lending sector.
These guidelines represent a significant step forward, providing a conducive lending environment, financial inclusion, and a personalized approach to lending. The industry is optimistic about their positive effects on credit penetration, borrower actions, and the overall lending ecosystem.
Rahul TalwarParticipantSupply Chain Finance (SCF) is a type of short-term loan that helps businesses fulfill their working capital requirements. Fintech companies are disrupting the traditional methods of SCF by offering credit inclusion, reducing the time required, and providing more flexibility. This benefits startups with weak credit profiles and suppliers with longer lead times. Fintech companies integrate APIs into the ERP systems of clients in real-time to streamline financial operations.
Before Fintech emerged, managing financial operations in supply chains was a difficult and time-consuming process involving multiple banks and trade agreements between buyers and suppliers. The traditional method was manual and required a series of approvals. However, Fintech has digitized most transactions and reduced the costs involved.
Fintechs like Triterras are now helping micro and small-scale enterprises (MSMEs) to realize their full potential by enabling credit, data-based risk assessment, and credit inclusion. Triterras’ Kratos platform focuses on business development efforts in Supply Chain Finance by building the business financing segment representing large “”anchor buyers”” lenders. This ensures that the benefits of SCF are extended to smaller businesses.
February 12, 2023 at 10:09 am in reply to: Can small and medium-sized enterprises (SMEs) in the IT sector have better access to trade financing via the use of blockchain technology? #1224Rahul TalwarParticipantThanks for the response
January 19, 2023 at 3:29 pm in reply to: Learn how MSMEs utilise government initiatives and schemes to enhance their growth and competitiveness. #1178Rahul TalwarParticipantThanks a lot for the useful response.
January 12, 2023 at 5:16 am in reply to: List the advantages and threats of utilizing supply chain financing operations for MSMEs. #1126Rahul TalwarParticipantSCF (Supply Chain Financing) is a banking business vertical becoming increasingly prevalent.
When successfully implemented, supply chain financing benefits the whole ecosystem: it allows corporate purchasers to protect inventory by expanding payment terms and increases suppliers’ assurance regarding future purchases. Banks and nonbank SCF providers create consistent, short-duration (and thus lower-risk), and frequently repeating transaction volumes while paving the way for broader solutions, including cash management, capital-markets solutions, and foreign exchange.
SCF provides MSMEs and companies with working capital optimization and the conversion of cash cycle benefits. It also affords banks the chance to cultivate long-term connections and cross-sell items.
January 6, 2023 at 11:57 am in reply to: How SME IPOs increased in 2022 while mainboard halved? #1091Rahul TalwarParticipantCompared to 2021, 2022 saw a 50% decrease in IPOs from firms listed on the NYSE’s main board. However, SMEs’ IPOs enjoyed phenomenal success, increasing by a factor of two over the prior year due to surging investor interest.
There were 108 small and medium-sized enterprise initial public offerings (IPOs) in 2022, up from 60 in 2021, whereas there were just 36 mainboard IPOs, down from 64 in 2020.However analyst found that, retailers and affluent people are drawn to SME IPOs by the prospect of multibagger listing profits. Institutional investors usually avoid these offerings.
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