Digital lending SaaS platform Biz2X has teamed with B2B eCommerce platform TradeIndia, to provide financing solutions for micro-, small- and medium-sized enterprises (MSMEs), a press release said Monday (Sept. 5).
This will be done through Biz2X’s financial product Maadhyam.
Through the arrangement, TradeIndia will provide financing to its MSMEs digitally, including loan servicing with features like line of credit, invoice-based financing as well as digital credit monitoring, repayment and collections management.
Vineet Tyagi, chief technology officer, Biz2X, said, “We want to take the financial sector forward especially for the SMEs in India. We have a decade’s experience in helping banks and financial institutions globally to digitally reach out to small businesses.”
And Sandip Chhettri, CEO of TradeIndia, said one of the challenges smaller businesses face is capital denial, so the companies wanted to improve that.
“With the launch of a series of financing solutions for these businesses, we look forward to helping customers address their emerging business needs,” Chhettri said.
TradeIndia has also recently debuted TI Lending, a new loan service intended for MSMEs.
Read more: B2B Marketplace TradeIndia Launches Loan Service for MSMEs
PYMNTS wrote in July that the product came about because the company had noticed concern from MSMEs about raising credit. There’s a large credit gap in India and some of the reasons for that come down to an absence of collateral, incomplete records of accounts, a preference for using cash, or a meager credit history.
“This made us introspect if we could be a one-stop solution for the SMEs, where we go beyond providing access to a marketplace by also supporting them in raising funds to meet their next big order,” Chhettri said, per the report.
The platform will screen initially for eligibility for loans, and charge a processing fee for the loan screening and part of the interest from the debtor.
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