Fundraising for MSMEs with PO
This query is : Resolved
17 May 2025
Hi, I’m part of a private offshore capital desk. We’re looking to fund short-term PO execution for real MSMEs with confirmed buyer orders. This is not a loan, it is a profit-based funding model. We need someone to help us source, filter, and verify MSMEs with real POs, GST/Udyam, and a capital gap of ₹5–₹25L. If you have clients in this situation, I’d like to work with you on a deal-by-deal basis.
12 August 2025
That sounds like a great initiative to support MSMEs with working capital! Here’s how you could approach this to effectively source and verify genuine MSMEs for your profit-based funding model:
1. Sourcing MSMEs with Real POs
Connect with Industry Associations (like MSME Chambers, local trade bodies, export promotion councils) — they often have verified members with active POs.
Engage GST and Udyam registered MSMEs through digital platforms or local business networks.
Use consultants or CA firms who work with MSMEs and can recommend credible clients needing working capital.
2. Verification Process
Validate Purchase Orders by cross-checking with the buyer — ideally directly contacting the confirmed buyer.
Confirm MSME status via Udyam Registration and verify GST compliance.
Assess financials for a capital gap of ₹5L to ₹25L by reviewing recent bank statements, sales invoices, and credit history.
3. Filtering & Due Diligence
Check for operational track record (6-12 months active operations minimum).
Verify no major legal or tax defaults.
Perform background checks on promoters and business reputation.
4. Collaboration & Deal Flow
If you have networks or clients in the MSME sector, you can inform them about this profit-sharing funding opportunity.
You can also partner with financial advisors, business consultants, or CA firms who can act as intermediaries.
1. Sourcing MSMEs with Real POs
Connect with Industry Associations (like MSME Chambers, local trade bodies, export promotion councils) — they often have verified members with active POs.
Engage GST and Udyam registered MSMEs through digital platforms or local business networks.
Use consultants or CA firms who work with MSMEs and can recommend credible clients needing working capital.
2. Verification Process
Validate Purchase Orders by cross-checking with the buyer — ideally directly contacting the confirmed buyer.
Confirm MSME status via Udyam Registration and verify GST compliance.
Assess financials for a capital gap of ₹5L to ₹25L by reviewing recent bank statements, sales invoices, and credit history.
3. Filtering & Due Diligence
Check for operational track record (6-12 months active operations minimum).
Verify no major legal or tax defaults.
Perform background checks on promoters and business reputation.
4. Collaboration & Deal Flow
If you have networks or clients in the MSME sector, you can inform them about this profit-sharing funding opportunity.
You can also partner with financial advisors, business consultants, or CA firms who can act as intermediaries.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- EXPORT COMMERCIAL INVOICE HSN CODE
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- FCRA 6 E- Intimation
- GST Rate for Catering Services
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
