Cashinvoice, a digital supply chain finance platform, has teamed with SBI Global Factors Limited, India’s leading factoring provider, to broaden the use of factoring solutions for MSMEs in India. This collaboration is positioned to demonstrate the potential of invoice factoring to reduce working capital requirements and improve credit availability for Indian MSMEs.
Invoice factoring, a critical component of trade finance, has seen an increase in demand worldwide, with the global factoring services market expected to reach $5,872 billion by 2031. While India has experienced an increase in this field, especially after the implementation of the Trade Receivables Discounting System (TReDS), there is still tremendous room for growth in the domestic market. This collaboration between Cashinvoice and SBI Global comes at a critical time, allowing both companies to capitalise on the expanding need for invoice financing solutions in India and elsewhere.
Factoring converts receivables into creditworthy assets, enabling businesses to get working capital loans while reducing credit risks. This technique delivers immediate cash flow, allowing firms to settle their payments quickly while also improving overall financial resilience and operational efficiency. Cashinvoice’s technology stack speeds up the factoring process by digitising three essential steps: onboarding, paperwork, and receivables assignment, allowing financiers to build scalable factoring portfolios. Furthermore, it allows for factoring receivables from buyers regardless of whether they are enrolled on its platform, serving a huge segment. With the introduction of this novel solution, formal loan access to MSMEs is expected to increase by more than 30% in the next three years.
Arun Poojari, Founder and CEO, Cashinvoice, stated, “The increased demand for MSMEs to find prompt financial solutions to meet their business objectives is propelling the factoring solutions market forward, and we’re excited to embark on this journey of facilitating these services to a vast pool of MSMEs with SBI Global Factors. By combining our technological prowess with SBIGFL’s network and resources, we’re positioned to chart new territory in the invoice financing space while offering innovative factoring solutions for our anchor customers. Through this collaboration, we are targeting to finance invoices worth over ₹3000 Cr in FY 24-25.”
Bharat Mishra, CEO, SBI Global Factors added, “At SBI Global Factors, our dedication lies in empowering the growth of MSMEs through innovative financing solutions. Cashinvoice’s advanced technology simplifies the creation of scalable factoring portfolios, streamlining the entire process. This breakthrough promises to significantly ease the factoring journey for financiers. Together, with Cashinvoice, we expect to bring a substantial impact in the invoice financing market.”
