Pune based association partners with Vayana Network to provide financing program to retail MSMEs
Pune, Feb 17 (KNN) The Pune Consumer Products Distributor Association (PCPDA) has collaborated with Vayana Network, a trade finance platform to offer financing program to micro, small and medium enterprises (MSMEs) in retail and distribution segment in the region.
This partnership comes as an effort to address the challenges faced by merchants such as distributors and retailers.
As distributors often deal with a mismatch in cash flow, either due to giving credit to retailers or having to make upfront purchases when transacting with corporates.
While, retailers are devoid of access to Supply-chain Financing (SCF) programs.
The products under Vayana Network will allow retailers to avail finance for the purchases they make through PCPDA member distributors.
Additionally, retailers have the opportunity to be part of formal banking channels and get funds at affordable rates and the product is offered to retailers based on their historical trade data derived using GST returns or the ledger information.
Speaking on the partnership, Anand Munot, President, PCPDA said, “The distributor and retailer communities, largely being a traditional business segment, have long faced challenges related to access to affordable working capital. It is a fact that business loans are offered against fixed assets, which are non-existent in case of retailers or kirana store. Our partnership with Vayana Network comes at a time when the business landscape is evolving at a rapid rate, opening new growth opportunities for the MSME sector. Through this collaboration, we hope that our distributors and retailer network grow their businesses and be credit ready.”
Explaining the resonance this program shares with Vayana Network's vision of increasing the GDP of Supply Chains by reaching out to the smallest of businesses and connecting them to the largest of lenders, Jitin Nanda, Business Head, Vayana Network said, “Our proprietary technology has made it possible for SCF to be extended to the last mile retailers, who are a very important element in the supply chain of an FMCG business. Through this partnership with PCPDA, we look forward to offer the retailers and distributors with instant access to the last mile retailer finance solutions, in turn enabling an increase in sale and turnover for all stakeholders in the supply chain.” (KNN Bureau)