Public lender Bank of Baroda has launched a supply chain finance solution to ensure working capital loans to small and medium enterprise and large corporate clients.
The solution will include services like pre and post-shipment products – dealer or channel finance, vendor finance and payable finance.
“We have kept the design and framework of technology and processes for the supply chain finance product such that it will augment the growth drivers for both large corporate and MSME clients,” Mayank Mehta, Executive Director, Bank of Baroda.
This service will accelerate working capital loans by enhancing reporting capabilities. It will bring down the risk and ensure greater satisfaction to the clients.
Small and Medium Enterprises (SMEs) are reporting greater demand for finance, particularly debt. However, out of the total financial requirement, more than three fourth is either self- financed or generated via informal sources. The rollout of the Goods and Services Tax (GST) has also boosted the requirement for finance in the industry.
