The Micro, Small, and Medium Enterprises (MSME) sector is a very important piece of India's legacy economic model and a part of the critical supply chain for products and services. This sector is considered the job creator and plays a crucial role in providing large-scale employment and industrialization in rural and backward areas.
In India, MSMEs contribute nearly 8% of the country's GDP, around 45% of the manufacturing output, and approximately 40% of the country's exports. Hence, MSME development is important for India's economic growth and could be termed the backbone of the economic system. A lot more has to be done to bring MSMEs into India into the organic competition. Despite these good tidings, several challenges prevent this sector from hitting its full potential. So, what are these issues that are acting as a hindrance in the development of MSMEs?
One of the biggest challenges that MSMEs face in India is a lack of finance. Due to a lack of debt financing choices for small firms in India, growth has been slower and they have been less able to take advantage of economic prospects. Apart from this, India's MSME sector usually does not enjoy the same creditworthiness, so, the banks are unsure about their repayment capabilities. Lack of financing options, lack of liquidity, long paperwork, and approval processes rob them of their chances of capitalizing on real-time business opportunities. Due to a lack of timely credit and financing, the businesses are unable to pay GST with a credit card, pay vendors with a credit card, and also can't transfer money to bank accounts.
BharatNXT App can help with this problem. BharatNXT App is a one-stop solution via which businesses can pay with a credit card. Also, with this app, MSMEs can instantly pay vendors with a credit card, pay GST with a credit card, and transfer money to bank accounts. This can help them increase working capital days. They can get extra credit rewards by using different credit cards on the BharatNXT platform while simultaneously getting credit card points and getting the hype on their credit score. Vendor payments should be managed in a timely and methodical manner to ensure a stable relationship with the suppliers or vendors. It also assures that the company can pay off all of its debts before the invoice due dates, avoiding the possibility of incurring interest or late payment penalties. It essentially fosters a strategic partnership with vendors, promoting business growth in the long run.
Vendor payments are the final action in the procure-to-pay or purchase-to-pay cycle of an organization. Vendor payments are defined as paying external suppliers or vendors of a business to purchase goods, services, or both, by establishing a feasible process and system that suits the organization. It begins with a business concern placing an order to purchase goods or services from an external vendor, supplier, or provider. It creates a purchase order for the vendor. Once it receives the goods or services ordered, the business will get an invoice from the vendor. In the final step, the business makes a payment towards this invoice, termed a vendor payment. Pay using a credit card and this will give you interest-free credit for up to-50 days.
Follow these easy steps to use the BharatNXT app for vendor payments:
BharatNXT enables you to make vendor payments easily. All you have to do is download the app from the play store, it supports all devices like Android and iOS.