In MSME lending, understanding the core business model is one of the key parameters to find the specific financing needs of the business. Couple this with information asymmetry, MSMEs, even after contributing 45% to the country’s industrial output and 40% of total exports, often face challenges in accessing credit to finance their businesses. This is where choosing the right lender can make all the difference.
A good lender should be able to tailor their lending solutions to meet the business’s unique requirements. Depending on the business’s needs, this can range from working capital loans to equipment financing.
The right lender can help MSMEs grow their business in several ways:
1) Quick Approval and Disbursal:
Time is of the essence in the business world, and MSMEs cannot afford to wait for months to get their financing approved and disbursed. The right lender should be able to provide quick approval and disbursal of funds, so MSMEs can take advantage of opportunities as they arise.
2) Flexible Repayment Options:
MSMEs may face cash flow constraints and need flexible repayment options. The right lender should be able to offer flexible repayment terms and conditions that are suited to the MSME’s financial situation.
3) Digital Platform:
The right lender should have a user-friendly digital platform that makes it easy for MSMEs to access their services. This can range from online loan applications to digital repayment options, depending on the lender’s capabilities.
4) Technical Expertise:
The right lender should have a team of experts with the technical know-how to provide MSMEs with the support they need to grow their businesses. This can range from advising MSMEs on their financial statements to helping them create a business plan.
Hence, choosing the right lender can be the difference between a business that thrives and one that struggles. MSMEs should carefully evaluate their options and choose a lender that understands their business and can offer the right financing solutions, flexible repayment options, quick approval and disbursal, affordable interest rates, technical expertise, and a user-friendly digital platform. By doing so, MSMEs can grow their business and achieve their financial goals.
About Red Fort Capital
Red Fort Capital NBFC has its own credit evaluation system to check the credibility of the borrower in a holistic approach which helps it to provide business loans of Rs. 1-10 crore in a record time of just 7 days. This is why it is one of the best NBFCs for MSMEs to secure quick capital. With a strong investment portfolio, the company believes in quick deal closure, pragmatic returns, and long-term partnerships. It has a wide range of deal portfolio from a financing logistics company to D2C black water brand, Red Fort capital is actively funding time-sensitive opportunities and supporting Micro, Small and Medium Enterprises in their growth journey. Therefore, it is a reliable NBFC that has been financing growth-oriented credit to businesses.