With the aim of facilitating the lending arrangement for small businesses through non-banking financial institutions, the government may announce the discounting of business receipts to make it more efficient during budget. According to Hindustan data, the last budget was proposed, but it has not yet taken legal form.
This is a portal that requires buyer and seller registration, and as soon as the entrepreneur receives a new order, it is easier to borrow according to that amount through non-bank financial institutions (NBFCs). In this portal, there is a system of lending against small and medium merchants registered for orders within 48 hours. In this new system, credit needs to be provided to imperfect new or small entrepreneurs with no credit history. Currently, banks, along with NBFCs, also provide loans to entrepreneurs with no history of debt. It is expected to be difficult to overcome by trying the portal.
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Currently, only NBFCs – large NBFCs – are allowed to lend through the portal. During the budget session, the government changes the Factoring Regulation Act to increase its coverage so that more and more traders can easily borrow based on orders. Moreover, the government mandates registration on the portal for all forms of government procurement so that their suppliers will not face any credit problems.