The growth of Non-Performing Assets (NPAs) continues to be a top concern for digital lenders, today. According to reports, Indian banks continue to face challenges in recovering debt. India’s 39 Debt Recovery Tribunals (DRTs) and five Debt Recovery Appellate Tribunals (DRATs) struggle to cope with the volume of cases. Though 60,000 new cases are reported […]
Best Practices for Evaluating Bill Discounting Requests
Bill discounting, or invoice financing is a short-term finance option for businesses, which can help them free up funds tied up in unpaid invoices. As a result, companies can optimise their cash flows and payment cycles without disturbing their balance sheets. It offers advantages to vendors and purchasers alike. Vendors can fuel growth and stabilise […]
Unlocking Opportunities: Loan Management Systems and Financial Inclusion in India
India, a rapidly growing economy with over 1.4 billion people, faces significant challenges in financial inclusion. Since independence, its banking sector has evolved through four distinct phases: Pre-social banking (1950-1969), Social banking (1969-1990), and two Liberalisation periods (1990-2005, 2005-present). Despite rigorous efforts to attain financial inclusion, around 11% of India’s adult population is underbanked even […]
5 Tech Trends Revolutionising Lending Lifecycle Management
There is a stark contrast between India’s current financial landscape and its state in the 2000s primarily due to the influx of fintech companies. The confluence of technology and finance combined with the increasing demand for convenient and user-friendly financial services are shaping India’s economic ecosystem. While traditional banks and financial institutions have served the […]
Strategies for Effective Collection Delinquency Management
The lending landscape is continually growing, with a mix of banks, neo-banks, Non-Banking Financial Companies (NBFCs), and payment apps offering a mix of consumer and business loans. However, collection delinquency management is emerging as a key challenge for lenders in an era when it is considerably easier to access a loan. However, traditional collection strategies, […]
Mitigating Risk in Debt Factoring: Underwriting Best Practices
Accounts receivable financing or debt factoring is a common business financing practice. Businesses can sell their accounts receivable to a third party, called a factor, at a discount. However, factoring could be an excellent solution for companies to try to cash in on their account receivables, control cash flow, and keep the business afloat. Factoring […]