CredAble Launches Revolving Short-Term Loans Within its New MSME Lending Vertical

2024-06-29 02:10:29 Business

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Mumbai, India, 26th June 2024: CredAble, a leading FinTech at the forefront of working capital financing, today announced the launch of its new product—Revolving Short-Term Loans, within its new MSME lending vertical.

The timing of the launch could not have been better. Globally, Micro, Small, and Medium Enterprises (MSMEs) are battling a financing gap of $5.2 trillion, of which 20% is tied up in supply chains. In India, 70% of the credit requirements of MSMEs can be attributed to filling working capital gaps.

As MSMEs are struggling with limited access to credit and borrowing opportunities, CredAble is playing a pivotal role in tackling these challenges and strengthening supply chains with its world-class working capital financing platform. The company has been championing 3,00,000+ anchor-led MSMEs with affordable and timely working capital financing and facilitating on-time payments to strengthen the MSMEs’ local and global supply chains.

On International MSME Day, the FinTech announced the launch of Revolving Short-Term Loans in a bid to step up its efforts in democratising access to credit and empowering MSMEs with purpose-built solutions designed to solve their working capital challenges.

With this launch, CredAble is diversifying its portfolio by including smaller ticket-size borrowers. The Revolving Short-Term Loans product launched by CredAble is a novel product that combines term and working capital demand loans. The new offering leverages CredAble’s low-code technology to revolutionise underwriting processes and set new benchmarks in the MSME financing space. This innovative solution provides instant, collateral-free, on-demand working capital with quick credit evaluation and repayment schedules aligned to MSME cash flows.

CredAble has also ramped up hiring in recent months, increasing its workforce and bringing in leaders like Gaurav Varshney as EVP Product and Head of SME Lending. With nearly two decades of experience in banking and FinTech, Gaurav is pivotal in shaping CredAble\'s financial services offerings.

Commenting on how CredAble’s newly launched solution will be instrumental in driving last-mile efficient working capital in the MSME sector, Mr. Gaurav Varshney, EVP Product and Head of SME Lending, said, “We are cognizant that MSMEs have a growing need for short-term, small-sum credit. Revolving Short-Term Loans removes the buyer’s credit rating dependency, facilitating MSME-to-MSME transactions. By introducing this flexible lending (without locking anchor’s receivables), we aim to provide more liquidity and on-time financing as per business requirements.”

Mr. Nirav Choksi, Co-founder and CEO of CredAble, said, “This is a testament to CredAble’s commitment to addressing the growing working capital needs of MSMEs. Backed by low-code technology, we are able to quickly develop and launch new financial solutions and handle an increasing number of small-ticket borrowers without compromising on service quality. With the launch of our new MSME lending vertical, we are uniquely positioned to enhance small businesses\' access to affordable sources of capital.”

CredAble recently achieved a milestone aggregate throughput of USD 8 billion across its working capital finance platforms, reflecting a remarkable 128% growth in the last financial year.

Looking ahead, with the launch of this novel product, the company aims to double the lending book in this financial year, further empowering businesses with innovative working capital financing solutions.

About CredAble:

Established in March 2017 by Nirav Choksi and Ram Kewalramani, CredAble is India\'s largest working capital technology platform enabling more than USD 8 billion annually in working capital for India Inc. which includes large, mid, and emerging corporates, MSMEs, and financial institutions. CredAble’s platform hosts over 125 corporate customers, over 3,00,000 small business borrowers, and over 35 large financial institutions and banks. By leveraging technology built in-house, expertise in big data analytics, trade finance, and partnerships with capital providers, CredAble leads the working capital space while witnessing over 500% year-on-year growth.