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/

Understanding Working Capital

Every small and medium sized enterprise requires a certain amount of working capital to ensure smooth business operations. Working capital is nothing but the equity or funds available to owners to meet their short-term financial commitments and expenditures. Calculated by subtracting the value of current liabilities from the current assets of a business, the available capital stands testimony to the financial health and efficiency of an enterprise, particularly in the short-term perspective.

There are various types of working capital such as fixed working capital, temporary working capital, gross and net working capital, etc. to name a few. Since it is the fundamental building block for any enterprise, working capital is a basic requirement that can never be compromised upon. This is why Working Capital Loans are regular finance products offered by any banking entity, and is the most demanded of loans by small, medium and large enterprises.

Source URL :  https://blog.capitalfloat.com/understanding-working-capital/

What You Need to Know about the GST Impact on Pharma and Healthcare Industry?

The pharmaceutical and healthcare industry is a significant sector for the Indian economy. In terms of the volume of generic medicines produced, India is the third largest producer in the world and its rank in terms of the industry’s value stands at fourteen. The healthcare segment is expected to reach a valuation of $150 billion by the end of 2017. Like every other industry of the economy, the impact of GST is bound to be felt on the pharma industry as well.

To begin with, as different indirect taxes will be subsumed in a single tax, it will simplify the taxation system. Going further, the GST will affect the pricing, working capital, contracts with vendors, the ERP systems and internal processes in the sector.

To understand the GST impact on pharma companies, we need to be aware of the entire range of the pharmaceutical supply chain. At one end are pharma product manufacturers, contract and API manufacturers and the organisations that market the products in different parts of India. At the other end is a chain of Carrying and Forwarding Agents (C&F), distributors/wholesalers and retailers.

Source URL:  https://blog.capitalfloat.com/need-know-gst-impact-pharma-healthcare-industry/

How to Determine Your Working Capital Needs

The availability of working capital is probably the most critical aspect of running a business smoothly and successfully. Also known as the current capital, working capital basically refers to the cash available with an organization for managing its daily operations and is calculated by simply deducting the current liabilities of a business from its current assets.

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/

Implications of GST for Trading

India is amongst the fastest growing economies of the world, with retail trade contributing an estimated $600 billion+ to the economy. The impact which GST, the unified indirect tax structure introduced by the Government of India on July 1 2017, brings on such a major economic lever will be highly significant.

How GST Will impact the Hotel and Travel Industry in India

The hotel industry is one of the fastest growing domains in India, and, together with the travel segment, it was valued at $136.2 billion by the end of 2016.

 

The implementation of Goods and Services Tax (GST) will help the hotel and travel industry largely by bringing down costs for customers, consolidating the multiple taxes into a single tax value and decreasing transaction costs for concerned business owners.

How GST Impacts the Logistics and Supply Chain Industry in India?

With the implementation of the Goods and Services Tax (GST) from 01 July 2017, business units across the country are beginning to feel its impact. Since the GST has subsumed all other taxes, such as service tax, VAT, Octroi, excise duty etc. collected by the central and state governments in India, the reforms are extensive. Their impact too is comprehensive and is expected to continue well into the future.

Like all other industries in India, GST impact on logistics and supply chain will also bring some major changes in the way these domains operate, as well as their bookkeeping activities.

Impact of the Union Budget 2018 on Individuals

The Finance Minister, Arun Jaitley, announced the Union Budget 2018 on 1st February 2018 with components possessing the potential to have a transformational influence on various sectors of the economy.

The current Indian economy has reached US$ 2.5 Trillion and is on its way to becoming the 5th largest in the world.

Implications of GST on Manufacturing

GST — the unified tax system that is set to revolutionize indirect taxation in India— is finally here. Some of its key proposed advantages are streamlining of tax payments, reduction in tax frauds, and ease of doing business. Here is a look at how these will play out in the manufacturing domain.

The manufacturing sector in India contributes a mere 16% to the overall GDP. However, the potential to make this a high-growth and high-GDP sector is huge. The “Make in India” campaign by Prime Minister Narendra Modi makes this possibility real, by giving impetus to the sector.

Source:- https://blog.capitalfloat.com/implications-gst-manufacturing

How will the GST Impact Financial Services Sector in India?

The Goods and Services Tax (GST) has been the biggest tax reform in India since 1947. Analysts also expect that it will have a huge impact on various sectors of the Indian economy, especially the service sector. Of the segment comprising banks and non-banking financial companies (NBFCs), the fund-related, fee-based and insurance services will witness significant impact as a result of GST implementation and will see shifts from the way they had been operating earlier.

 What is Really Implied by Financial Services?

The term ‘financial services’ has not been specifically defined by the GST law. However, to understand the implications of this tax on the financial services sector, we need to consider the supply of goods and services that involve the extension of credit support.

Source URL:-  https://blog.capitalfloat.com/will-gst-impact-financial-services-sector-india/