Join our masterclass with Mr S S Nayak for practical advice on overcoming financial hurdles and improving your strategies.
Key takeaways from the session:
- Explained collateral requirements for MSMEs, often prioritised over project viability.
- Highlighted high interest rates due to non-compliance with benchmark financial ratios.
- Discussed creditworthiness issues for new businesses lacking credit history.
- Addressed limited financial literacy among MSME entrepreneurs.
- Mentioned delays in payments from clients affecting working capital limits.
- Discussed the advantages of digital lending platforms in accelerating loan processes.
- Noted transparency improvements with digital applications and real-time document tracking.
- Discussed key factors banks consider when evaluating MSME loan applications.
- Emphasised the importance of maintaining a good credit score for better loan terms.
- Explained the impact of insufficient formal financial documentation on accessing credit.
- Suggested businesses maintain buffer funds to handle economic downturns or disruptions.
- Emphasised the need to diversify revenue streams and not rely on a single source.
- Highlighted the role of emergency funds and risk coverage by insurance.
- Recommended strong cash flow management and monitoring of receivables.
- Advised restructuring loans as a strategy for managing financial difficulties.
- Collaterals and creditworthiness: collateral often precedes business viability; credit history is crucial for loan approval.
- Digital lending benefits: digital platforms have streamlined loan processes, offering speed and transparency.
- Financial literacy importance: knowledge of government schemes can greatly impact MSME growth and sustainability.
- Cash flow management: proper management of receivables and cash reserves is vital for operational stability.
- Diversification and preparedness: diversifying income streams and maintaining emergency funds are key to weathering financial challenges.
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20 сен 2024
