6 Types of Business Loans Available to SMEs In India

The Small and Medium Enterprises (SME) sector is of key importance to the Indian economy given that it employs the second largest workforce in the country after the agricultural sector.

Statistics offer a clearer picture. Accounting for 45% of industrial output and 40% of exports, the SME sector can be a significant driver of economic growth. SMEs also produces more than 8000 quality products for the Indian and international markets.

In recognition of their significant contribution, SMEs are receiving a welcome push from industrial associations and government bodies. Yet their biggest challenge continues to be business loan requirements. Lack of timely financial help wreaks havoc on the growth of small businesses. Funding, if not received at the right time is of no use. Often, SMEs are turned away by traditional banks for a number of reasons. Further, the inflexible and complex loan application and approval processes of conventional lenders are discouraging for most small enterprises.

Source URL:  https://blog.capitalfloat.com/6-types-business-loans-available-smes-india/

Top 10 Time Management Tips for Small Business Owners

Time is money. No phrase proves this statement better than when you own a growing business.

As you strive to achieve your business aspirations, juggling responsibilities and managing activities end-to-end sums up a typical work day. You simply cannot afford to compromise on any of the processes at hand, because it might have a profound impact on the growth of your venture. The trick is to focus your productivity on the limited resources you have in a time-efficient manner till you can confidently handover the heavy lifting to experts. Successful businessmen will tell you the same, but in two words: time management.

Here are our favorite tried-and-tested time management tips for small business owners to save you time and make running your business easier.

Source URL:  https://blog.capitalfloat.com/top-time-management-tips-small-business-owners/

Projections for the Future: Top 5 Small Business Trends in 2018

Thriving amidst difficult environments has never been easy for SMEs in India, but they continue to stand tall. Despite numerous challenges in the form of infrastructural constraints and lack of access to formal credit, they contribute to 8% of the GDP. Rightly called ‘the engine of growth’ for India, SMEs have scaled manufacturing capabilities, reduced regional disparities and balanced the distribution of wealth.

Small businesses are now being increasingly associated with innovation and employment, and the figures state likewise. The micro, small and medium enterprise(MSME) sector contributes to 69% of employment in India. With the growing penetration of technology into mainstream ecosystem, these industries are at the forefront of bringing the convenience of digitalization to the masses.

The Indian economy is expected to be a $5 trillion economy by 2025, and SMEs are cutting roads towards this goal. As we enter the first financial year post implementation of GST, some interesting small business trends are touted to play an important role for a smoother growth journey to global standards.

Source URL: https://blog.capitalfloat.com/projections-future-top-small-business-trends-2018/

GST Rates Revised for 27 Goods and 12 Services

The Goods and Services Tax (GST) is one of the biggest reforms in India’s indirect tax structure post-independence. Since its implementation on 1st July 2017, SMEs have sought clarity concerning the changes that the new four-tiered tax structure will bring into the taxation system.

Through the GSTN Educational Series, we attempt to offer clarity regarding GST and the resounding impact it will have on the Indian economy as a whole. We evaluate the far-reaching implications that this attempt at ‘One Nation, One Tax’ legislation will have on SMEs in India.

The revised rates of indirect taxes for every good and service are specified in detail along with the modifications for inbound and outbound transactions. A simple infographic illustrates how to register under GST in four easy steps and lists the necessary documents required to be submitted by Private Limited companies, Partnerships and Individuals.

Source URL :  https://blog.capitalfloat.com/gst-rates-revised-27-goods-12-services/

Impact on Retailers in India after 2018 Union Budget

The Union Budget for FY18-19 was much anticipated, owing to reasons more than one. The first full-fledged financial plan after the introduction of GST and the last one by the Narendra Modi-led government, the most significant event of the Indian financial year is over. With the national polls looming in, the Union Budget rolled out by finance minister Arun Jaitely was favourable towards agriculture, rural development, social infrastructure and digital transformation. However, international mobile phone companies, bond investors, equity servicing institutions and the defence sector are at the not-so-advantageous end of the spectrum. In general, this year’s Union Budget has been a shift from the typical stance of the government that all segments need equal attention.

An industry segment that sees clear growth opportunities is retail. Amidst public opinion that the budget had not mentioned the retail segment, the various provisions have subtle repercussions that will help widen the scope of consumption. Consequently, this will have a long-term impact on retailers, where they can reap benefits from consumers with a higher expendable income.

Souce URL: https://blog.capitalfloat.com/budget-2018-impact-retailers-2018-union-budget/

First GST Whitepaper Exclusively for SMEs

We have created ‘GST- An Overview, Its Impact & Significance’ as a comprehensive GST handbook comprising of every aspect related to this new reform, with a special focus on Small and Medium Enterprises (SMEs). Starting with the salient features, this GST ebook takes readers through the three main components of the tax which eliminate the cascading effects of taxation. Further, the registration process, four-tiered tax structure, the benefits as well as challenges are explained in the GST whitepaper.

Source URL:  https://blog.capitalfloat.com/gst-whitepaper/

Revised GST Rates – with effect from 25 January 2018

The 25th GST Council was held on 18 January 2018, and the rates of 29 goods and 53 services were reduced to lower tax slabs. These revised rates came into effect on 25 January. Other highlights of the panel included the decision to divide between the Centre and State, collections worth ₹35,000 crores from the Integrated Goods and Services Tax. The proposal to bring petroleum and diesel products under the ambit of GST is likely to be considered in the next meeting.

Source URL:  https://blog.capitalfloat.com/revised-gst-rates-effect-25-january-2018/