Alternate Lenders are Cosying Up to Small Business

Source: Sourcing Hardware

Pune’s Vayana Network offers two major lending services: network financing and buyer-initiated payments to suppliers (BIPS), besides GST and related services. Under its network financing service, the company’s digital network enables finance B2B trade through its “simple and affordable” financing programmes. It allows access to low-cost financing with no additional investment or changes in the current process and nil or minimal collateral for growing businesses. The company’s BIPS is a buyer-led financing programme that allows access finance “at lower than market rates” to better manage working capital for reducing risk in growing business.

Apart from the metros, the company has penetrated in smaller towns such as Chak Agra in Jammu & Kashmir, Zirakpur in Punjab, Behror in Rajasthan, Murshidabad in West Bengal, Maddur in Karnataka, Pudukkottai in Tamil Nadu, and Alleppey in Kerala, informs the company’s founder & CEO, R N Iyer. “Vayana Network will take the convenience and easy access to fair-priced finance to the last tiers of the supply chain by financing the SME to MSME trade, including scoring for businesses that previously did not have access to credit using the GST and E-way bill information. We have till now focused largely on the SME to large corporate segment or mid to mid-size businesses,” he adds. The company, he informs, will increase cross-border trade finance footprint with a special focus on Indo-US and ASEAN-US corridors.