This document provides an overview of financing options and trade solutions for small and medium enterprises (SMEs) in India from Global Trade Solutions. It discusses SME classifications, challenges SMEs face in India, and financing options. It then describes Global Trade Solutions' credentials and various export and import products and services to help address SME financing needs, including export factoring, import financing, letters of credit, and trade advisory services.
2. Contents
SME Page
• Industry Overview – SME Profile & Potential 03
• SME Classification – Sector / Product Wise 04
• Indian Scenario – Key Challenges & Macro Solution 05 -06
• Financing Options for SME 07
• Broader Constraints 08
Why ‘Global Trade Solutions’? 09 - 10
• Our Credentials
• Our Services
Global Trade Solutions for SME
• Products for Exporters 11
• Chart Showing Transaction 15
• Products for Importers 16
• Domestic Factoring 20
3. Overview…. SME – Profile & Potential
• SME Contributes 40% of Industrial Output, 35% of Exports & 1% of GDP
• Predominant Role of SME’s in the Economy Due to – Its Number, Variety and
Involvement in all aspects of the Economy.
• Creates Large Scale - Low Cost Employment Opportunities, 46 million employments,
creates one million jobs every year and produce more than 8000 quality products for the
Indian & International Market
• As a result, MSMEs are today exposed to greater opportunities for expansion and
diversification across the sectors. Indian market is growing rapidly and Indian industry
is making remarkable progress in various Industries like Manufacturing, Precision
Engineering, Food Processing, Pharmaceutical, Textile & Garments, Retail, IT
(Information Technology), Agro and Service sectors.
• Uses Locally Available Units
• Mobilises Small & Scattered Savings
• Develops Entrepreneurship
• Regional Development
• Complementary Role to Support Large Sector
• Basis For Innovations and Adaptations
4. Based on products, SMEs in India can be broadly
classified into the following groups:
• Food products
• Chemicals and chemical products
• Basic metal industry
• Electrical machinery and parts
• Rubber and plastic products
• Machinery and parts excluding
electrical goods
• Hosiery and garments
• Wood products
• Nonmetallic mineral products
• Paper products and Printing
• Transport equipment and parts
• Leather and leather products
• Miscellaneous manufacturing industries
• Other services and products
• Beverages, tobacco / tobacco products
• Repair services
• Cotton textiles
• Wool, silk and synthetic fibre textiles
• Jute, hemp and mesta textiles
• Other services
6
5. Indian Scenario – Challenges & Solutions
• Audacity of Indian Entrepreneurs…
• Quality Industrial Infrastructure
• Rapid Change in Technology, Quality Standards
• Growing Financing needs…Lack of Adequate Working Capital
• Low Access to Formal Funds…
• Lack of In-house Knowledge Centre…
• High cost of Borrowings…
• Low Access to Foreign Funds…
• Low amount of Disbursals…
• Other International Risks Involved (or unforeseen Risks)
Above factors making your Business not Grow or Expand….
6. Solution…
Making the Business Flow…
• Increase the ‘Life of your Business’ and ‘Business of your Life’.
• Turning ‘Potential’ into ‘Profit’
• Fuel the Growing Business Requirements
• Look beyond the Traditional Options
• Deal with International leader in Trade & Finance Solutions
• Partner with International Experts
7. Upto
breakeven
Long
Sustainable
growth
VC / Bank / Debt
markets
Bank Finance /
Debt/ IPO
Short term
Growth Loan/ Debt/ IPO
Mid Term
Creation PromotersLong Seed capital /
Subsidy
SME
Lifecycle
Suitable type
Duration of
financing
required
Suitable
Channel
Start up
VC / Angel
investor /
Subsidy/
Tax incentive
Long VC /
Promoters
Maturity Public Debt/
Capital Market
Short term
VC / Angel investor /
Subsidy/ Tax incentive/
VC/ Angel
Investor /
Promoters
VC / Bank /
Promoters
Capital Market/
Debt markets
Financing options for SME
8. Banks perception of SME’s
• Lack of transparency of
information
• Low technology
• Low capitalization / Collaterals
• Vulnerable to market changes
• High risk sector
• Low profitability
SME’s perception of Banks
• No special schemes for
technology financing
• Inadequate and delayed
credit
• Cumbersome procedures
• Insistence on collaterals and
guarantees
• High rates of interest
Constraints in Financing SME’s..
9. Why GTS?
• Leaders in Trade Finance Solutions with cumulative
experience of handling clients.
• Over Rs.430 crs Disbursed in last 2.5 years.
• Maintaining over 105 successful Client Relations
• Our Ability to ‘Customize & Execute Solution’ to suit your
requirement, Providing Access to Funds.
• Our Presentation skills to Present your Case to the Bank.
• In-house Project Assessment and Appraisal Team doing all
the project report
• Arrangement for Rating Reports with CRISIL & ICRA
• Our In-house Credit Analysis Team (C.A.T)
10. • Work on Your Side to Help You Restructure
and Win in all situations.
• Involvement of our Senior Management
• Our Tie-ups, Network of Offshore Institutions
• Dedicated Team Handling Segment of Clients.
• Direct Meeting with Senior Team at Banking end.
• Transparency in our work and services
11. Products for Exporters
Export factoring provides immediate financing against your
export receivables. Financing can be availed in Indian
Rupees or in foreign currency.
“Best of Bankers and their teams are their to support you”
• Export Collections
Collection of your commercial / shipping documents. For
exporters, it is a more secure option than trading on open
account terms because the shipping document will be delivered
to the importer only against payment or an acceptance to pay on
due date. We also offer instant email functionality, providing
details on the export collection transactions, to a designated
person in your office through our EDCA offering.
12. • Export Financing
We can address funding gaps in your trade cycle and support
your business, by providing you export financing options in
foreign currency (at LIBOR linked rates) or in Indian Rupees,
both at the pre-shipment and post-shipment stage.
We can reduce country and bank risk, exposure to interest and
exchange rate fluctuations and turn your receivables into cash.
We also provide instant email advice.
• Advance Remittances
Any payments into the country by overseas parties are
processed expeditiously and credited to your account
promptly.
Products for Exporters….. Contd..
13. Products for Exporters….. Contd..
• DC Confirmation
Reduce bank and country risk effectively by enjoying the security of
payment commitments from both the issuing bank and the confirming
bank. Concern Bank is one of the largest institutional banks with
global correspondent banking relationships with over 2,500 banks. If
MNC bank confirms the DC, and your documents are presented in
compliance with the DC terms, payment from MNC Bank will be
final.
DC Transfer
Ideal for buyers working with sourcing agents who require credit
cover. If you are a sourcing agent or the first beneficiary, we can
provide guidance on the terms and conditions of your DC and assist in
either fully or partially transferring your DC to the ultimate supplier.
• DC Advising
We have Swift key arrangements with most of the major banks, to
facilitate straight through processing of DC advising. We also offer a
real time electronic DC advising functionality wherein the DC is sent
through an automated email to a designated person in your office.
14. • Trade Solutions
Faster Communication and Quicker turnaround times. As both the Import
and Export legs of the Transactions are handled by one bank you should
receive funds 6 days earlier on average, Saving you Interest Charges
‘Peace of Mind’ ‘Pre and Post Shipment Finance’
• Forfaiting
We can arrange for an Offshore Financing on your export receivables to
countries especially high / medium risk with medium to long credit
periods.
Advisory services on any export transaction –
Our local experts understand trade thoroughly, and they can provide value
to your business by performing advisory on a host of trade issues,
including structuring DCs for your Export Business.
Products for Exporters….. Contd..
15.
16. Products for Importers
We offer a wide range of Import Services, delivered by our
experienced trade team, who will ensure that your business
is handled Efficiently and without delay. What’s more,
with the support of our Global Network, you can rest
assured that we have representatives available to assist you,
wherever in the world you do business.
“Best of Bankers and their teams are their to Support You”
17. • Issuance of documentary credits (DCs) and standby
letter of credits (SBLCs)
When issuing DCs or SBLCs through Bank, you enjoy the
following benefits:
Detailed advice on structuring the instruments to meet your
import requirements
Comprehensive guidance on the DC terms and conditions
Access to vast global expertise and resources
Ability to Turnaround Transaction processing expeditiously
18. • Import Collections services
This is a cost-effective solution for trading internationally. Under
this arrangement, the importer gets the shipping documents, after
making payment or providing an acceptance to pay at a future
date. We have established strict service standards, which ensure
that you are promptly informed of any documentary collections
drawn on you.
• Import Financing
We can address funding gaps in your trade cycle and support
your business, by providing you import financing options in
foreign currency (at LIBOR linked rates) or in Indian Rupees. We
can arrange import buyers' credit financing through Bank
branches / group entities overseas, at internationally competitive
LIBOR linked rates.
19. • Advance Remittances / Direct Remittances
For your import payments to be made to overseas beneficiaries, we
provide a quick turnaround for payments by way of Telegraphic
Transfer / Demand Drafts etc.
• Issuance of shipping guarantees/delivery order or any other
guarantee
In case the goods you import arrive before the transport documents, we
could issue you a shipping guarantee / delivery order to facilitate
taking delivery of the goods. You then have immediate access to your
goods and avoid expensive storage fees and demurrage charges.
• Advisory services on any Import transactions
Whatever your sourcing requirements, we are well positioned to
provide you expert advice for structuring your import transactions.
Leveraging on our global presence, we can offer solutions where Bank
group entities can handle the transaction on both sides thereby
ensuring a smoother, safer and a more cost-effective execution of
transactions.
20. Domestic Trade Services
• Local sales
Documentary credit (DC) advising, confirmation and transfer
Discounting of your local sale document / negotiation of your
local sale documents drawn against documentary credits
Receivable financing
Issuance of local guarantees
• Local purchases
Issuance of documentary credits
Handling of purchase documents under documentary credits
Payable financing
Issuance of local guarantees
21. Thank You!
We Look Forward to Partner you.
Please contact Mr. Neeraj Sethi
Hand phone # 9711525419
Email: sme.neeraj@gmail.com