Tech-driven supply chain financing launched
Singapore-headquartered Moglix, Asia’s largest B2B commerce company, has rolled out Credlix, a digital supply financing platform that provides quick collateral-free working capital solutions, exclusively to its suppliers, especially the cash-strapped MSMEs through its collaboration with banks throughout India.
“MSMEs in India account for 11 crore jobs and 29% of the country’s GDP. Unclogging the cash flow through the supply chain will be integral to fostering winning partnerships between MSME suppliers and large enterprise buyers and realizing the Government’s vision for Aatmanirbhar Bharat. Credlix is on track to provide invoice discounting of Rs.1,000 crores over the next 12 months and is aiming to touch Rs.10,000 crores discounting value over the next 3 years by scaling up to include more banks, suppliers, and geographies,” Rahul Garg, Founder & CEO, Moglix, said at the launch of Credlix on 15 Feb 2021.
Currently the service is available to its 15,000+ suppliers, mostly MSMEs, said Moglix, adding that the decision to plug into digital supply chain financing is one of the many initiatives it has taken to secure the supply chain ecosystem from disruptions.
Credlix’s supply chain financing platform makes it easy for suppliers to access collateral-free credit from enterprise buyers and banks and NBFCs through invoice discounting, said the company which serves industrial products in 50+ categories with presence in the UK, Singapore and Middle East.
Suppliers will be able to request for early payments from enterprise buyers at affordable discount rates to keep their supply chain up and running. Credlix allows suppliers to monitor all stages of invoice discounting and stay in control of their cash conversion cycle. From credit application and credit risk assessment to payment approval and final disbursement, suppliers will get a single platform to manage their early payment requests.
Offline models of credit underwriting have a high exposure to manual intervention and use under-reported financial metrics of suppliers. The offline underwriting system makes the credit cycle more risk-prone, and slower. The risk of NPAs and bad debts compels creditors to charge a higher cost for credit.
Noting that 35% of MSMEs in India receive payments after 3 months of delivering their manufactured goods, Garg said Credlix is offering a technology-driven supply chain financing system that will make it easier for suppliers to get just-in-time payments. Credlix is also building other products on its platform that will solve for other credit needs of suppliers, by partnering with financial institutions.
Moglix is one of India’s largest and fastest-growing B2B commerce companies specializing in digitally enabled procurement and supply chain solutions for MRO, Packaging, Infra and SaaS products for contract management. #digital #financing #banking #credit /fiinews.com
