Gupta sees SME’s growing interest in other forms of flexible financing solutions
A recent survey by EquiDEI blockchain-based financial services provider revealed that 75% of manufacturing businesses said that they “don’t trust the banking services” when it comes to loans because of high interest rates while 67% said they are comfortable with adopting flexible financing solutions.
Fifteen per cent of respondents to the survey of 500 manufacturing businesses said that they are still comfortable with traditional bank financing solutions while 18% said they will think about it.
Said Raghav Gupta, Founder EquiDEI, “The results confirm that what we have seen in terms of SME growing interest in other forms of flexible financing solutions for business financing is an emerging market for EquiDEI. We seek to tap this opportunity by effectively utilizing blockchain technology to provide low-cost credit to SMEs, and at the same time mitigate the risk using a real-world link to such credit.”
Ninety-nine percent of the businesses in India fall in the MSME category, a third of which are manufacturing enterprises in need of financing for their business.
EquiDEI is a DeFi platform that enables manufacturing SMEs to get easy access to finance based on their assets. The idea is to tokenize under-utilized assets in manufacturing supply chains and channelize the yield from these assets to provide cheap funds to supply chain entities.
“Based on tokenized assets and data from these supply chains we offer management analytics to our customers, helping them to get better insights to run and scale their business,” Gupta said.
EquiDEI aims at being a lending platform for them with an interest lesser than banks and other FinTech companies. EquiDEI will also act as an umbrella for the MSME allied industries and organizations. Onboarding supply chain entities from allied industries will ensure transparency in the MSME sector is maintained while ensuring liquidity for all individual businesses. fiinews.com
