Master in Accounts & high court Advocate
9615 Points
Posted on 18 May 2025
. Here's a potential approach: Key Requirements -
*MSME Verification*: Ensure the MSMEs have valid GST/Udyam registration and confirmed POs from buyers. -
*Capital Gap Assessment*: Verify the MSMEs' capital gap and ensure it falls within the ₹5-25 lakh range. -
*Deal-by-Deal Basis*: Collaborate on a deal-by-deal basis, providing funding to MSMEs through a profit-based funding model. Potential Partnership Structure - *Commission-Based Model*: Consider a commission-based model, where the partner earns a percentage of the deal value or profit. -
*Revenue-Sharing Model*: Alternatively, explore a revenue-sharing model, where the partner shares a portion of the revenue generated from the funded MSMEs. Benefits -
*Access to Funding*: MSMEs can access timely funding to execute POs and grow their business. - *Risk Mitigation*: The profit-based funding model can help mitigate risks for both parties. - *Growth Opportunities*: This partnership can create growth opportunities for MSMEs, the partner, and your capital desk. Next Steps -
*Define Partnership Terms*: Clearly define the partnership terms, including commission/revenue-sharing structures, deal criteria, and verification processes. -
*MSME Sourcing*: Identify potential MSMEs that meet the specified criteria and have a track record of executing POs.
- *Due Diligence*: Conduct thorough due diligence on potential MSMEs to ensure their credibility and financial stability. By partnering with the right entity, you can create a win-win situation for MSMEs, your capital desk, and the partner [1].