The institutional Debt Financing to MSMEs in India is governed by the Reserve Bank of India and includes Public Sector Banks, Private Sector Banks, Small Finance Banks, Foreign Banks, Co-operative Banks, and Regional Rural Banks.
Working Capital, Term Loans, Equipment financing, LAP, LC / Bill Discounting, ECB, Structured & Stressed assets funding, are some of the products under this category.
However, there are many limitations of Institutional Debt Financing such as lLack of timely credit for non-compliance, information asymmetry, issue of collateral security, procedural delays etc.
Kennis has deep knowledge in all debt financing products and depending upon the requirements and its internal study, the team will come out with the right approach and solution to meet its clients’ objectives.
Another way of raising funds for businesses is through equity financing. Bank loans are often expensive and require you to meet several credit requirements. On the other hand, equity financing is a great option for startups, small enterprises, and midsize businesses. Some of the main methods of equity financing are: