Flexiloans.com, a digital lending platform, offers credit to micro, small and medium enterprises (MSMEs) which find it tough to tap into legacy institutional players. It uses digital tools to make good the lack of transparency and poor credit histories of borrowers. MANISH LUNIA, co-founder of Flexiloans, spoke to Raghu Mohan on its approach to the business. Edited excerpts:
How is your invoice-based funding solution different from working capital loans provided by banks for MSMEs?
Invoice-based financing and bill-discounting has traditionally been restricted to a few large enterprises and their suppliers or customers. Our endeavour has been to serve deserving MSMEs that have hitherto been either unserved or underserved. We partner with tier-I to tier-III entities that want to support their vendors and suppliers for their working capital needs. We acquired Creditperiod — a supply chain technical interface startup — three years ago and have disbursed 10,000-plus loans. To summarise, working with a wide range of corporations (rather than only large-cap entities), financing small vendors using digital processes, and unlocking the working capital stuck with debtors are the biggest differentiators of our invoice-backed financing product.
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First Published: Sun, February 14 2021. 20:59 IST