Cashinvoice ties up with SBI Global factors to strengthen loan book, targets 3000 Cr invoice financing in FY 24-25
Digital supply chain finance platform, Cashinvoice has partnered with SBI Global Factors Limited, India’s premier factoring company to broad base use of factoring solutions for MSMEs in India. This partnership is poised to exemplify the potential of invoice factoring to ease working capital requirements and enhance credit enablement for the Indian MSMEs.
Invoice factoring, a crucial component of trade finance, has witnessed a surge in demand globally, with the global factoring services market size projected to reach $5,872 billion by 2031. While India has seen an uptick in this area, particularly after the introduction of Trade Receivables Discounting System (TReDS), there still exists significant potential for expansion in the domestic market. This collaboration between Cashinvoice and SBI Global factors comes at a pivotal moment, positioning both entities to capitalize on the growing demand for invoice financing solutions in India and beyond.
Factoring converts receivables into creditworthy assets allowing businesses to access working capital loans while mitigating credit risks. This approach provides instant cash flow, enabling businesses to promptly settle their payments while also enhancing overall financial resilience and operational efficiency. Cashinvoice’s tech stack expedites the factoring process by digitizing 3 critical aspects – onboarding, documentation and assignment of receivables thereby equipping scalable factoring portfolios for financiers. Moreover, it facilitates factoring receivables from the buyers regardless of whether they are registered on its platform, thus catering to a large segment. With the advent of this innovative solution, formal credit access to MSMEs is poised to grow by over 30% in the coming 3 years.
Mr. Arun Poojari, Founder and CEO of 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 of 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.”
About Cashinvoice:
Launched in 2018, Cashinvoice is a leading provider of supply chain financing solutions that offers dynamic invoice discounting to MSMEs of India’s leading corporates. The supply chain financing platform enables comprehensive payable and receivable management solutions that digitize the way businesses pay and get paid. The platform optimizes working cashflows efficiently through digitization of invoices and leveraging supply chain finance to incentivize payables and receivables. Through its digital marketplace for invoice discounting, the company offers customized supply chain financing (SCF) solutions to buyers and suppliers of mid and large corporations. It integrates with corporates to access validated invoices, dynamically prices invoice discounts based on risk assessment algorithms, and allows platform lenders to digitally process loans against invoices.
About SBI Global Factors Limited:
SBI Global Factors Limited (SBIGFL) is a wholly owned subsidiary of State Bank of India (SBI) dedicated to providing factoring services to businesses across India. SBIGFL is the pioneer of Factoring in India with 33 years of exhibited history of providing bespoke factoring solutions and it operates through 10 branches across the country and its Head Office is situated in Mumbai. SBIGFL is maintaining the market leader position in factoring business and poised to take a big leap in coming years through product innovation, strategic alliances, process simplification and technology upgradation. With a strong focus on customer-centricity, SBIGFL is committed to fostering financial inclusion and supporting the growth aspirations of MSMEs.
