Allows vendors to meet operating expenses and reduce working capital cycles from the traditional 90 days to less than 24 hours
4th November 2020 – India: The outbreak of pandemic has definitely altered business models and transformed even well-entrenched industries, all within a few months. Yet, it has been an opportunity to cause widespread impact for some others. Scrutinizing the circumstances, CredAble – A Supply Chain Financing focused FinTech which leverages its trade finance expertise, technology platforms, and access to third-party trade finance capital to arrange large-scale liquidity programs disbursed a staggering Rs. 2,500 crores to cash-starved SME & MSMEs across its various programs.
The beneficiaries of this extensive outlay include thousands of vendors that face winding down of their operations in the absence of this working capital injection. More so, the commencement of this resourceful step turned out to be a benefit for large corporates too, who couldn’t clear invoices amid the mire COVID-19 brought. As the CEO & Co-Founder of CredAble, Mr. Nirav Choksi expresses contentment for being able to reimagine supply chain financing in times of dismay and said, “Standing strong on our mission we at CredAble lend a hand to our clients’ needs which is possible by developing strategies via the flexible business model we have built for providing vendors and distributors/dealers of large corporates with working capital financing on-demand, irrespective of size or credit.”
To maintain the cash-influx, CredAble sourced capital from both its own NBFC as well as a network of financial partners and in the past few months, it increased the number of both banks and NBFCs that participate on its platform. Mr. Choksi further added, “We are providing vendors to meet operating expenses and reduce working capital cycles from the traditional 90 days to less than 24 hours meeting the needs of every cash-starved SME and MSME in our ecosystem without having them to follow a lengthy procedure. I would also like to thank the entire team of CredAble along with our financial partners who could make it possible”
For some companies, the invoice approval process is tedious and prolonged whereas several vendors operate on very thin margins and require working capital at an even earlier stage. To resolve the needs of both these ends is where CredAble’s “Just-in-Time Financing” solution sets it apart, meeting the needs of clients’ working capital. “I was on the verge of closing down my business as curfews prohibited most deliveries and hampered our growth. If not for CredAble’s platform, I would have to pawn off my jewelry and other personal assets to keep the business alive” expressed one such logistics vendor, who utilizes the Just-in-Time financing platform provided by the Supply Chain focused FinTech.
Elaborating on the working capital cycles, Mr. Ram Kewalramani, Co-Founder & Chief Operating Officer of CredAble stated, “The company harnesses its technology prowess to fund vendors at a pre-invoice stage against certain milestones and while providing 2500 cr to the cash starved SMEs/MSMEs, the book size in the past months has up surged by 6 times the current volumes. And the beneficial factor for clients throughout has been the consistent interest rate suitable as per the needs of the borrower. While operating with several prominent players in the e-commerce, media, logistics, automotive, and infrastructure industries, we maintain an effortless and straightforward procedures on our platform. At CredAble, we enable vendors to get paid early while giving their end clients the option to maintain or even extend their DPOs, which equips them with quick working capital and assists in growing their business.”
CredAble has further invested in digitizing its entire onboarding and lending process to facilitate quicker turnaround times and a better user experience for its clients. The lockdown might have been a catalyst, but going digital is inevitable, and CredAble is set to ride these headwinds into the future.