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Moglix aims to facilitate financing worth Rs 1,000 cr through Credlix

Moglix aims to facilitate financing worth Rs 1,000 cr through Credlix
outlookindia.com
1970-01-01T05:30:00+0530
New Delhi, Feb 14 (PTI) B2B commerce company Moglix on Sunday announced the launch of its supply chain financing solution Credlix and said it aims to facilitate financing worth Rs 1,000 crore in the next one year using the digital platform.

Credlix, a digital supply financing platform, will provide quick collateral-free working capital solutions exclusively to Moglix''s suppliers across India through collaboration with banks.

While the service will initially be available to Moglix''s over 15,000 suppliers, it will be extended to micro, small and medium enterprises (MSMEs) across the country, Moglix founder and CEO Rahul Garg told PTI.

"The decision to plug into digital supply chain financing is one of the many initiatives we have 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/NBFCs through invoice discounting," he explained.

Garg said suppliers will be able to request for early payments from enterprise buyers at affordable discount rates to keep their supply chains up and running.

Invoice discounting refers to the practice of using a company''s unpaid accounts receivables as collateral for a loan that is issued by a finance company.

Credlix will also allow 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.

"MSMEs in India account for 11 crore jobs and 29 per cent 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 realising the government''s Aatmanirbhar Bharat vision," he said.

Garg said Credlix aims to provide invoice discounting of Rs 1,000 crore over the next 12 months and to touch Rs 10,000 crore over the next three years by scaling up the service to include more banks, suppliers, and geographies.

Garg said 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.

Credlix is offering a technology-driven supply chain financing system that will make it easier for suppliers to get just-in-time payments, he said, adding Credlix is also building other products on its platform that will serve other credit needs of suppliers by partnering with financial institutions. PTI SR ABM

ABM


Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI

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