To address the financial challenges of MSMEs, fintech company CredAble recently introduced ‘Revolving Short-Term Loans,’ a credit line designed to transform small businesses positively.
These loans, built with a forward-thinking approach, cater to the financing needs of small businesses and dramatically reduce credit turnaround time. It’s a pay-as-you-use working capital credit line, allowing firms to pay interest only on their funds. This product blends digital assessment with the flexibility of collateral-free borrowing.
Satyam Agrawal, Global Head of Product & Retail Business Lending, MD ASEAN & ME at CredAble, says that, unlike traditional credit lines, their solution caters to transactions with counterparties that aren’t large-rated entities. “This empowers MSMEs to manage their cash flow effectively and seize growth opportunities. It is particularly beneficial for micro MSMEs, which often face erratic cash flows, by providing them with a collateral-free line enabling them to scale quickly,” he says.
Elaborating further, Agrawal says that it offers the flexibility to access funds only when needed and with complete transparency costs, allowing small businesses to access capital without worrying about high charges. “We anticipate that the revolving short-term loans will significantly enhance financial stability for MSMEs and help them navigate market challenges,” he adds.
Achieving last-mile financial inclusion is vital for MSMEs in India, as many businesses depend on transactions with other small businesses. Without adequate support, a significant opportunity for GDP growth in India remains untapped.
Reports indicate that 66% of SMEs seek faster credit solutions, and 55% need financing within 7 days. Reloadable credit models can quickly disburse funds, effectively meeting the urgent financial needs of SMEs. “By bridging the financial gap at grassroot levels, we aim to unlock the true potential of these businesses, driving economic growth and sustainability across the nation,” Agrawal states.
In recent years, rapid advancements in fintech have dramatically transformed the financial services ecosystem. New use cases for on-time and affordable financing have emerged, real-time payments have gained momentum, and the lending landscape has been redefined—all to better meet the needs of the MSME sector.
Nirav Choksi, Co-founder and CEO of CredAble, states that the need of the hour is to build solutions for thin-file, small-ticket borrowers. “Our investment in technology has given us the opportunity to develop new tools and processes that extend the reach of credit and power innovation in MSME financing,” he highlighted.
