New Delhi [India], January 25 (ANI/SRV): CREDITQ, a single solution platform for all the problems of MSMEs & businesses to minimize the defaults in the MSME sector, CREDITQ launched the platform as of December 25, 2019.
Since then, more than 1.00 lakh users have registered, and Rs. 276.4 crore defaulted amount has been reported.
The company aims to minimize the default payments in the MSME sector and for the benefits of 6.30 crore MSMEs. To reduce the defaulted amount in the MSME sector, CREDITQ offers a platform that facilitates MSME to manage their credit transactions, report delayed/default payment issues, check credit information reports to check the credibility and forecast the credit limit before engaging in new transactions.
Through an automated mechanism, CREDITQ not only helps in settling their default payments but also prevent the MSME from getting caught in the defaulter's trap.
CREDITQ's vision is to build a platform equivalent to the present-day Transunion CIBIL where MSMEs can report payment defaults which can also help Banks & NBFC in doing due diligence before lending to their buyers as an additional checkpoint.
It also wants to create a special environment for the buyers and suppliers where everyone upholds their promises and do their payments on time. Not only will it give people the facility to report the defaulters but also give defaulters the chance to improve their credit scores.
Although other platforms work similarly, like the government's MSME Samadhaan portal, the portal also allows businesses to file reports for delayed payments.
However, The Government does not promote this portal as an MSME tool while CREDITQ is approaching to MSME sector very frequently and proves it as a forecasting tool to make smart decisions. What makes CREDITQ unique is that with CREDITQ CIR, users get to know how many companies have declared a business as a frequent defaulter. The report also provides various other significant information about the financial status of a business that helps a member make better decisions. It also offers a reliable platform for members to settle payments without getting into a long-drawn legal battle. CREDITQ acts as a liaison and helps make the settlements between parties without ruining business relationships.
Fear of ruined business relationships is the most common reason creditors lose out on their payments. With a tendency of increasing defaults against their name, the buyers try to make payments on time to reduce the number of defaults at their end, which negatively impacts their credit score and may lead to loss of their goodwill in the market in the long run.
As of now, CREDITQ is connecting only MSMEs and businesses but in the future, it will be helpful for Banks and NBFC's as financial institutions lending the money on the basis of banks credibility but they don't know their market credibility. CREDITQ strengthen the bank's procedure and escapes the MSMEs too.
Further, the honourable prime minister Narendra Modi highlights that the MSME sector is suffering from decreasing cash flow and default/delay payment issues. The central government had appealed to all the sectors to release their payments on time and find out a solution to minimize the default payment issues.
CREDITQ strives to be the solution tothe highlighted problem. As of January 20, 2022, more than 1.00 lakh users have registered on our platform, and 276.4 crores defaulted amount has been reported. The positive response ratio from MSME IS 72%. In the coming years company expects to connect all the MSMEs on the CREDITQ platform. After scales up, the company will launch other services which will strengthen the MSME and will help to increase the cash flow.
Mukta Mittal Founder & MD, said, "We are getting good response from MSME and we sure that in coming days we will resolve this problem till the farthest extent."
If MSMEs are afraid that if they will report their buyers, they can lose their customers, they have to take some strict decisions in business and draw a line between default payments and on-time payments. It's time to decide that they want good relations at the cost of default payments or want to increase the revenue and cash flow.
To know more, visit - https://creditq.in/ and https://www.youtube.com/channel/UCFfeQmdNjEPvCGqglgtzfVQ
This story is provided by SRV. ANI will not be responsible in any way for the content of this article. (ANI/SRV)