Allahabad Bank, Standard Chartered Bank, Vijaya Bank and Yes Bank, partner Invoicemart, come on-board TReDS platform

Mumbai, Feb 27 (KNN) Prominent financial institutions including Allahabad Bank, Standard Chartered Bank, Vijaya Bank and Yes Bank, have come on-board the leading invoice discounting platform Invoicemart, a release from the firm informed.

These recent addition takes the total number of financiers on the platform to 10.

Invoicemart has been witnessing an increased interest by financiers as they are warming up to the idea of online invoice discounting. The banks are also gearing up their internal processes by setting up specialised departments and branches, the release further added.

Commenting over the latest development, Kalyan Basu, CEO & MD, Invoicemart said, “We welcome these prestigious financial intuitions on board and thank them for showing trust in our offering; we assure superior service levels to our new partners. Invoicemart team has in-depth knowledge of supply chain finance, corporate and SME banking”.

The team understands the challenges faced by MSMEs in obtaining working capital finance and the systemic gaps in the financial ecosystem. At Invoicemart our endeavour is to bridge the gap that has prevented institutional lenders from reaching out to small businesses, Basu added.

According to BCG-FICCI 2017 report, less than 10% of the 50 million strong MSMEs borrow form formal financial institutions, if targeted and serviced appropriately, MSMES can grow to have substantial share of Indian bank's commercial balance sheets in the next 3-4 years.

Factoring platforms such as Invoicemart offer financiers to extend loans to MSMEs based on the ratings of their corporate buyers which usually have good borrowing ratings. This allows MSMEs to get capital at lower costs while financiers are not only assured of repayment but also get PSL accreditation for such loans.

Referring to the announcements made by the finance Ministry, Basu added that the recent announcements by The Finance Minister for resolving various issues of MSMEs has been a shot in the arm for them, resulting in a renewed interest by financial institutions in funding their working capital needs." (KNN/DA)