Before JiT Finco, we have run a small business. We lived through Working capital shortages, Delayed payments, missing monthly payroll, et al. With limited fixed assets, we didn't fit into the banker's asset-backed lending model. Also, their credit products suited large companies better.
Like us, there are millions of small businesses in the country. Think of your neighborhood kirana owner, the chemist, or someone in the gig economy. All of them are small businesses and didn't fit into the banker's model either.Creating new credit products, alternative ways to assess a small business seemed like a big opportunity. We dived right in and are doing just that. We want to impact a million small businesses with our credit products and new underwriting methods.
The Unchanging Core
End-Use LoansWe build a credit product with a specific end-use in mind. A small business owner needs money to meet several expenses related to business. We create products that pay directly to a business expense.
Just-In-TimeGetting a decision on a loan file in India is still a 2-week process. We don't like that a bit. We make decisions fast and deliver the loan soon enough. Credit provided for an end-use, just-in-time.
Credit @ Affordable CostMost MSMEs borrow at 24-36% interest (from informal lenders). At this price for credit, an average MSME generates negative margins in the business. A loan at JiT Finco costs much lower for MSMEs.
DigitalA mission to deliver credit to a million small businesses can't be possible without digital. At JiT Finco, we extensively rely on India's digital public goods like IndiaStack, GSTN, and UPI to reach and deliver credit.
DataMSMEs now have a lot of data to share about their businesses. We use data of purchases, sales, payments, and tax filings to underwrite loans. Using data as a proxy to assets and physical collateral excites us.
FinanceOur work is all about creating new products and services related to Finance for MSMEs. For us, credit is one of many areas where we can help a small business owner. We just got started with the credit part of the problem.
The Cost of not paying GST in time!
Over the last few months, our work with SMEs has helped us
understand them better. It is very well established fact that a
lot of these SMEs have
ABOUT USJiT Finco is solving the access-to-finance problem for 65 million small businesses in India. We are leveraging advances in technology and data to develop new products and services related to finance for MSMEs.