LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Small Business News

SME export can touch new heights but first these issues should be addressed

SME exports face serious challenges like lack of instant loan approval, collateral-free post-shipment finance, minimum documentation, invoice factoring, etc.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
SME export can touch new heights but first these issues should be addressed
SMEs invoice factoring is a process of procuring finance by selling the invoices of your transactions to a third party known as the factor. Photo: Pixabay
Written By: Asit Manohar
Updated: Wed, Apr 17, 2019
08:11 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Yasho Industries adds 2,500 tonne/yr capacity in Gujarat plant Yasho Industries adds 2,500 tonne/yr capacity in Gujarat plant
Coworking space: Real estate business thrives on rising foreign MNCs' demand Coworking space: Real estate business thrives on rising foreign MNCs' demand
Startup India effect: Co-working space business gaining momentum among overseas MSMEs Startup India effect: Co-working space business gaining momentum among overseas MSMEs
Standup time for startup India! Risers Accelerator says ready with booster shot- funding to knowledge Standup time for startup India! Risers Accelerator says ready with booster shot- funding to knowledge
Co-working space: The office space business is gaining traction among Indian startups Co-working space: The office space business is gaining traction among Indian startups

SME Export: SMEs or small and medium enterprises account for near 40 per cent of India’s total export volumes but are some of the most underserved when it comes to working capital provisions. Demands for collateral, long processing times, heavy paperwork burden, and other such factors contribute towards making working capital highly inaccessible for SMEs. Institutions like factoring firms and NBFCs offer alternative financing solutions; however, many SME exporters are unaware of these offerings. At a time when the Modi government is seriously thinking to enhance the export via SMEs these issues need an urgent address, say SME experts.

Pressing for awareness among the SMEs for finding alternatives to credit capital Rajeev Chawla, Chairman, IamSMEofIndia told Zee Business, "Invoice factoring is a process of procuring finance by selling the invoices of your transactions to a third party known as the factor. Based on your transaction history and other parameters, the factor gives the seller (the exporter) a credit line which they can then use to finance further transactions to other buyers (importers). In most cases, the seller gets 80 per cent of their invoice value upfront from the factor (often without the need for collateral), and the remaining 20 per cent — minus the factor’s fees and interest — after the buyer transfers the value of the invoice to the factor.

See Zee Business Live TV streaming below:

Vikas Yadav, Senior Business Development Manager at Drip Capital — a US-based trade finance firm — said, “There are many small and medium industrial units in India and many of these SMEs face severe issues with managing their working capital because of a lack of adequate financing options. In order to solve this problem, we provide collateral-free post-shipment finance to Indian exporters with instant approvals and minimal documentation.” However, he said, many SME exporters are unaware of these offerings and need to be educated about the same. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Small and Medium EnterpriseMicro Small and Medium Enterprises
RELATED NEWS
Yasho Industries adds 2,500 tonne/yr capacity in Gujarat plant Yasho Industries adds 2,500 tonne/yr capacity in Gujarat plant
Coworking space: Real estate business thrives on rising foreign MNCs' demand Coworking space: Real estate business thrives on rising foreign MNCs' demand
Startup India effect: Co-working space business gaining momentum among overseas MSMEs Startup India effect: Co-working space business gaining momentum among overseas MSMEs
Standup time for startup India! Risers Accelerator says ready with booster shot- funding to knowledge Standup time for startup India! Risers Accelerator says ready with booster shot- funding to knowledge
Co-working space: The office space business is gaining traction among Indian startups Co-working space: The office space business is gaining traction among Indian startups

LATEST NEWS

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty support range, says investors should trade keeping volatility in mind

ITC Share Price: Experts give 'share to buy' tag; predicts up to 25% profit in three months

EaseMyTrip IPO Review: Issue opens on Monday! 'SUBSCRIBE' say experts; check details like important dates, price band, lot size, many more

Gold Price Outlook: Yellow metal falls by over Rs 11,500 in last six months; may crash much more

7th Pay Commission: Central Government Employees' Dearness Allowance (DA) to become 25 pct from April 2021?

JEE Main 2021: RUSH! March registration ends today—Here is how you can apply

Indian economy outlook 2021: This is why FY 2021 GDP performance will be better than projection—Finance Ministry EXPLAINS

PPF Calculator: You can double Public Provident Fund income and save income tax outgo - you will need this help

Gold Price Outlook – Gold, Silver prices may see further fall next week; expert tells what to do to maximise gains

Delhi to have its own school education board; Arvind Kejriwal says focus will be on providing jobs, proposes this unique exam pattern

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved