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Tech enabling growth of Indian Agribusiness – A Conversation with Suresh Devnani
India has an extremely promising future in fintech. We have seen a path breaking and highest rate of digitization and mobile usage growth in the world and those are the key ingredients required for the success of fintech sector. That coupled with a large and growing educated, tech savvy mid aged population are the perfect […]
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CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises
CGTMSE, or the Credit Guarantee Fund Trust for Micro and Small Enterprises, is a scheme introduced by the Government of India in order to provide financial assistance to micro and small enterprises (MSEs) by guaranteeing their loans. This scheme was launched in August 2000 and is managed by the Credit Guarantee Fund Trust for Micro […]
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TReDS
What is TReDS? The scheme for setting up and operating the institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs), through multiple financiers is known as Trade Receivables Discounting System (TReDS). Following are the Salient Features of TReDS. Unified platform […]
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Bill-to-ship-to (BTST) Trade Model
In general trade, there is a buyer and a seller, buyer raises a purchase order to the seller against which the seller is obliged to ship the commodity to seller. Basis the received goods, post quality and quantity deductions buyer is obliged to pay to the seller the money basis there finalized payment terms. Now, […]
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Invoicemart
Invoicemart, a joint venture between Axis Bank and mjunction services, is a digital platform that connects MSME suppliers and corporate buyers to multiple financiers. It enables sellers to sell their invoices to financiers, thus unlocking working capital quickly. Invoicemart is a Trade Receivables Discounting System (TReDS) platform set up to resolve the credit challenges faced […]
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Invoice Discounting
This is a way of raising short-term funds or getting the liquidity required when your working capital is stuck in credit period availed by your buyer. Invoice discounting is a specific term for trade receivable discounting. Invoice discounting means getting funds against invoices you raised against your buyer. like receivable finance with some difference from […]
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Escrow Agreement
Escrow is a tripartite agreement where two parties are involved in transaction/trade/business and third party is neutral party. Neutral party holds the funds/assets until the trade conditions are complied between both the transacting parties. It reduces the default risks from either buyer or seller. Will understand same by taking an example. In our last example […]
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Agri-Receivable Financing
Raising funds against the future receivables is called receivable financing. Any Sales Order, Purchase Order, Approved Contracts, Trade Agreements, Bills and Invoices raised can be used to raise funds. Account receivable financing, loan against receivable, these are different jargons used for receivable financing. Let us discuss more with an example for an agribusiness entity Will […]
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Cash Flow based Lending (CFL)
The kind of financing/lending which is based on the cash flows of company/firm/proprietor is referred as cash flow based lending. Cash flow is the amount of money coming in and out from the organization. Basis the strength of cash flows when a financier takes call for financing any organization/project we call it cash flow financing. […]
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