New Delhi-based B2B marketplace TradeIndia has rolled out TradeIndia Lending (TI Lending), a new lending service for micro, small and medium-sized enterprises (MSMEs), according to a report by Financial Express on Friday, July 8.
CEO Sandip Chettri said TradeIndia launched the product because the company discovered that many small businesses were concerned about getting credit.
The report noted that MSMEs in India have a large credit gap, with the reasons for lack of access to capital being lack of collateral, incomplete books of accounts, preference for using cash and meager credit history.
“It made us wonder if we could be a one-stop solution for SMEs, where we go beyond just accessing a market by also helping them raise funds to fulfill their next big order,” said said Chettri, according to the report.
According to the report, the platform will initially review loan eligibility and charge a loan review processing fee and a portion of debtor interest. For this reason, Chettri said companies would see “more value” with TradeIndia.
TI Lending will offer several products in its first year, including working capital loans, supply chain finance loans, and a subscription offering for small businesses who want to use the company’s products to add more digitization.
PYMNTS wrote in 2020 that TradeIndia has partnered with Cashfree, an Indian payment and banking technology company, to offer online card payments, unified payment interface (UPI) and internet banking services as part of its TradeKhata offer at the time.
See also: Cashfree, partner of TradeIndia for the digitization of SMEs
According to the report, this has helped provide buyers and sellers around the world with a reliable way to identify and communicate with business owners.
The pandemic offered some setbacks, but at the time Cashfree co-founder Reeju Datta said the shift to a more digital world made it much more urgent for small businesses “to embrace digital payments at large scale in order to develop their activities”.
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