Fintech
Fintech player CredAble launches short-term revolving loans under its new SME lending vertical
Crediblea leading FinTech company at the forefront of working capital financing, today announced the launch of its new product – short-term revolving loans, within its new SME lending vertical.
The timing of the launch couldn’t have been better. Globally, micro, small and medium enterprises (MSMEs) are facing a $5.2 trillion financing gap, of which 20% is tied up in supply chains. In India, 70% of MSME credit needs can be attributed to filling working capital gaps.
As MSMEs grapple with limited access to credit and lending opportunities, CredAble is playing a critical role in addressing these challenges and strengthening supply chains with its world-class working capital financing platform. The company supports over 3,00,000 anchor-led MSMEs with affordable and timely working capital financing and facilitating timely payments to strengthen local and global supply chains of MSMEs.
On International MSME Day, the FinTech announced the launch of short-term revolving loans in a bid to step up its efforts in democratizing access to credit and empower MSMEs with targeted solutions designed to solve their financial challenges. of working capital.
With this launch, CredAble is diversifying its portfolio to include smaller borrowers. The Revolving Short-Term Loans product launched by CredAble is a new product that combines term loans and working capital demand loans. The new offering leverages CredAble’s low-code technology to revolutionize underwriting processes and set new benchmarks in the SMB finance space. This innovative solution provides instant, collateral-free and on-demand working capital with rapid credit assessment and repayment plans aligned to MSMEs’ cash flows.
CredAble has also ramped up hiring in recent months, growing its workforce and bringing on leaders like Gaurav Varshney as EVP Product and Head of SME Lending. With nearly two decades of experience in banking and FinTech, Gaurav is instrumental in shaping CredAble’s financial services offerings.
Commenting on how the new solution launched by CredAble will be instrumental in promoting efficient working capital in the last mile in the SME sector, Gaurav Varshney, EVP Product and Head of SME Lending, said: “We are aware that MSMEs have a growing need for short-term and small sum credit. Short-term revolving loans eliminate dependence on the buyer’s credit rating, facilitating MSME-to-MSME transactions. By introducing this flexible lending (without locking anchor receivables), we aim to provide more liquidity and timely financing as per business requirements.”
Nirav Choksi, co-founder and CEO of CredAble, said: “This is a testament to CredAble’s commitment to addressing the growing working capital needs of MSMEs. Supported by low-code technology, we are able to quickly develop and launch new financial solutions and manage a growing number of small-value borrowers without compromising quality of service. With the launch of our new SME lending vertical, we are uniquely positioned to improve small businesses’ access to affordable sources of capital.”
CredAble recently achieved an aggregate milestone of $8 billion across its working capital financing platforms, reflecting a remarkable growth of 128% in the last financial year.
Looking ahead, with the launch of this new product, the company aims to double its loan portfolio this financial year, further empowering businesses with innovative working capital financing solutions.