What Inspired JiT Finco?

By Praveen Hari

I have been an entrepreneur for 8 years now and recently co-founded JiT Finco is help MSME gain access to sustainable finance. I am a huge fan of the idea of using data and digital to innovate in the area of MSME finance. I have been a passionate advocate of cash flow based lending to bridge the MSME Finance gap in India. Living the dream of impacting a million MSME through sustainable finance.

Working capital credit at the right price has been a long standing dream of many small business owners in the country. Different estimates show that around 80% of small businesses are deprived of working capital credit from the formal economy. There are a bunch of reasons why SMEs were largely ignored by the formal sector.

a)     Lack of collateral

b)    Lack of documentation for loan assessment

c)     Costs involved in reaching out to a lot of small businesses

d)    Time it takes to process a loan file 

While there are many such reasons, a lot of SME owners feel the local money lenders did a commendable job of underwriting their loan. He is quick when it came to underwriting and delivers the loan almost instantly. That pushed a lot SMEs to local money lenders. But those loans came at a higher cost started adversely impacting an SMEs profitability.

The questions we asked ourselves were, can we beat the local money lender at his game? Can we use the latest technological advances to innovate on products and distribution strategies? We feel the answer is ‘Yes’, and we founded JiT Finco.

JiT Finco stands for Just In Time Finance Company. We are committed to the idea of delivering credit Just In Time for small business much akin to what a local money lender does today. But that also means we need radically different thinking and we need to leverage technology to the fullest extent. The combination of technology, data and digital can drastically reduce the time it takes for underwriting a loan application and could accelerate the loan delivery process by 100X. This idea excites us and thought of delivering credit Just In Time and giving an SME a good fighting chance at growth continues to motivate us. At JiT Finco, we are on a mission to deliver working capital credit to 1 million small businesses in the country and we are just getting started.

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