Fintech & Ecommerce

State Bank of India Rolls Out Web-Based Invoice Financing Solution

The State Bank of India has launched a web-based invoice financing solution for microbusinesses and small and medium-sized businesses.

State Bank of India Rolls Out Web-Based Invoice Financing Solution

A new element in the functional system of the mentioned lender has been named MSME Sahaj. As part of this solution, State Bank of India customers will have access to financing against their sales invoices in less than 15 minutes. It is worth clarifying it is meant by the duration of the procedure from application to disbursement. The relevant information was released to the media last Monday, July 1.

As part of the new solution of the specified financial institution, automated loan closure is also provided on the due date.

Dinesh Khara, Chairman of the State Bank of India, says that the launch of MSME Sahaj aims to provide the fastest and most intuitive lending solution. In this context, it was also noted that the introduction of a new functional proposal contributes to strengthening the position of a financial institution as a leading lender for microbusiness and small and medium-sized businesses in India.

In October, Mastercard announced the launch of a partnership with retail intelligence platform Bizom. This collaboration is focused on providing Indian small retailers and distributors with a comprehensive digital supply chain financing solution. Mastercard also noted in October that the partnership with the retail intelligence platform is a kind of extension of the payment industry giant’s existing offer aimed at meeting the demand for working capital. The parties to the cooperation, which began in the fall, are aimed at solving the problems faced by retailers and distributors in the sphere of consumer packaged goods. In this case, difficulties such as supply chain disruptions, difficult payment procedures, lack of access to capital, and limited technical skills are implied.

Mastercard and Bizom note that there are more than 64 million macro businesses and small and medium-sized businesses in India. At the same time, only 14% of the companies in the relevant categories have official access to formal credit. This state of affairs will in one way or another limit the pace of development of macro-businesses and small and medium-sized businesses in the South Asian country.

Vikas Varma, chief operating officer, South Asia, Mastercard, said in October that the collaboration will allow Indian companies to embark on a path of digitalization that will help them get online, get paid, and gain access to capital.

In August, in India, a local company, Clear, which provides software as a service (SaaS) for B2B, presented a virtual invoice financing tool called Invoice to Finance (I2F). This solution is designed to simplify financing for individuals and businesses to promote financial growth and inclusivity across the country.

The I2F platform builds upon the foundation of the Goods and Services Tax (GST) network. This functional system provides small businesses with access to financing on their invoices in less than 30 minutes. The platform uses real-time integration with eInvoice and GST-filling data, and it automates the credit processing journey.

Clear founder and CEO Archit Gupta says that the company realized a significant gap in the market when it came to supply chain financing for small businesses. Also in this case, it was noted that the automated invoice financing product of the firm is designed to eliminate the mentioned gaps by using the capabilities of GST data.

As we have reported earlier, India Central Bank Tightens Rules for Financing of Alternative Investment Funds.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.