One of the largest sectors in India, trading is an important sector as it plays a major part in sustaining the country's economy. India, rich with vast natural resources and skilled labour, is one of the fastest-emerging trade dynamos globally. Considering the support and employment that is generated from export and import, the government has recognized retail and wholesale traders as micro-small-and-medium enterprises (MSMEs). Nitin Gadkari, Minister of MSME and Road Transport and Highways, stated that the government had revised the guidelines to include retail and wholesale traders as MSMEs. Thus, today there are many financing options like business loans for traders offered by financial institutions, banks, and NBFCs that help them expand and grow trading businesses.
Despite the support and help provided through business loans for traders, there are also certain difficulties that the Indian traders have to face today. To bridge this gap, at Kinara Capital, we offer an easy, simple way with minimum documentation that can help you get the required funds to start your small business.
Grow your business with collateral-free MSME loans!
To explore how we can help you strive and survive in the Indian trading sector, here are a few challenges that are faced by any business in the trading market and how a business loan for traders can make you sail smoothly past these challenges:
1. Inadequate Infrastructure
India lacks majorly in providing the trading sector with an efficient and smooth infrastructure.
Infrastructure includes multiple sectors such as power, communication, water, and waste. Unfortunately, the not so advanced and developed transport and infrastructure poses the following problems for the traders:
- Congested ports
- Congested roads
- Lack of connectivity
- Outdated rail equipment
Organizations that provide business loans for traders can help them overcome these challenges. With the capital obtained, the business owners can evade the infrastructure problems, making them a bit bearable.
2. Low Credit Access
Credit access should be made simple and easy, especially for the MSMEs, as they are a major part of the world's economy and face several difficulties collecting or generating sufficient funds for the smooth functioning of their business. Here are a few challenges that they face when trying to gather an adequate amount of money:
- Collateral requirements
- Lack of adequate awareness
- Complex application procedures
At Kinara Capital, we offer business loan for MSME traders through a smooth, hassle-free process. to MSME traders
3. Document Heavy Process
There are many different documentation processes and certifications that traders need to go through to complete their trade. For instance, the documentation procedure on Indian ports is no child's play, and for food and pharmaceutical goods, submission of health and safety certificates is required. It is also advisable to plan ahead because certification authorities are not available round the clock or on all days of the week.
4. Delayed payments
Customers are often facing their own working capital challenges and sometimes lack the liquidity to pay suppliers on time. Additional working capital can help circumvent the issues related to delayed payments.
5. Fulfilling large orders
Manufacturers can have a minimum order requirement that may not be feasible without adequate liquidity.
Apart from the struggles and challenges mentioned above, there are many more difficulties that a trader faces in India. Different sectors of business face different challenges.
Business to business kind of import and export is one of the most emerging types of trading in India. In this type of trading, there is no involvement of the customer or the client, and one business is providing another business with its products. Thus there is a constant need for transportation, inventory, maintenance, and many other such things. To meet these expenses, Kinara Capital offers business loans for traders such as working capital loans and asset purchase loans that can help you grow your business and create a significant position in the market.
One of our happy customers, K. Appa Rao of Hema Electronics, shared his experience with us. He struggled to keep a stable working capital and put all expansion plans on hold because he simply did not have the resources to support them. However, by taking four loans from Kinara Capital, his business was able to grow in leaps and bounds and he is now able to create more employment opportunities for others.
So, contact Kinara Capital and write your own success story!
- Trading loan
- Kirana loan
- Retail store loan