Receivable financing for MSMEs

MSMEs are the backbone of the economy and global trade. According to CII, there are around 63.4 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities as well as 33.4% of India’s manufacturing output.

 

What Is Receivable Financing?

Short-term funding that small to medium businesses can draw on using their receivables is termed as receivable financing. It allows companies to receive funding for their day-to-day expenses while waiting for their invoices to get paid.

In simple terms, this line of credit turns your receivables – including invoices or money you are owed – into crucial funds to help run your business. Receivables are one of the best liquid assets any company holds. 

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Types of receivable financing

Accounts receivable financing is a great alternative to generate liquidity during a cash crunch as opposed to getting a business loan. Despite the fact that Accounts receivable financing can be structured into various forms, its main types include:

       Factoring: When a small to medium business sells its receivables to a third party in exchange for required funds is known as factoring. It is actually a sale of assets so that the default risk transfers to the financing firm.

       Invoice discounting: When a firm takes a loan against invoice assets is termed as invoice discounting. It allows companies to borrow funds against other funds it owes.

The best part is that Red Fort Capital offers all types of receivable financing to help MSMEs to get the desired funds to grow. Contact us now for all your business loan needs!

Receivable Financing with Red Fort Capital

 

Receivable financing is offered by many traditional financing institutions, like banks and NBFCs. But, their process is too complicated and time-consuming.

But, With Red Fort Capital, you can assure of a quick loan approval process without any complications. We value every minute of your time and do our best to give you the funds you need without much delay. Our onboarding process is seamless and quick.

Benefits for applying for a loan at Red Fort Capital for financing needs you will get the following benefits: 

       Flexible Loan Benefits: We offer a moratorium period of up to 6 months based on the business requirements.

       Quick Loan Disbursement: We generally disburse the loan amount within 5-10 days, depending on the due diligence.

       Long-Term Partnership: Most of our existing clients have reached out to us whenever they face any credit requirements.

Recently, Red Fort Capital financed a Jaipur-based transport company. The loan amount of ₹ 8 Cr was disbursed within a week. 

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How to Apply for Receivable Financing

 

Applying for receivable financing is easy and quick with Red Fort Capital. Here are the steps to follow:

       You only need to fill out the loan application process by visiting Red Fort Capital‘s . Or, you can also send a message on whatsapp.

       When we receive your application or loan request, you will get a call from our representative within 24 hours and the process begins.

Whether you need a term loan, supply chain loan, inventory loan, or any other business loan, Red Fort Capital is here to help. Reach us now!

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