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  2. Why Veritas Finance

MSME sector, especially the unorganized micro and small enterprises, lack support from the existing ecosystem, especially on the financing front.

  • Limited Access to Equity Capital
  • Absence of adequate and timely supply of finance for working capital
  • High cost of credit Collateral Requirements
  • Squeezed by larger customers (principals) on delayed payment terms
  • Limited ability for expansion and modernization
  • Total viable & addressable debt demand in MSME sector is Rs.39 trillion
  • Un-served & underserved customer segment with large potential for MSME Loans
  • Immense requirements in semi-urban and rural areas
  • Service industries among MSME segment largely remain un-tapped as funding remains focused on manufacturing sector
  • Most of the micro enterprises in the MSME sector transact largely in cash and hence do not have accurately recorded financials.
  • Lack of financial documentation in this segment might be challenging task for the credit assessment process. However, Veritas Finance has put in a robust Credit Screening     Process, with a keen focus to understand and address the perceived risk of these untested micro enterprises of MSME segment in the absence of such documents.
  • Veritas Finance loans, where it is found necessary would be required to be secured by collateral of a property. Given the way the land records are maintained and the nature of     documentation, it is most likely to face challenging issues like properties owned by minors, properties passed on through unregistered partition deeds, inherited land without proper     supporting documents, built on encroached land etc.
  • Veritas Finance customers, who belong to the socially disadvantaged segment of the society, are most likely to be unaware of these legal issues. Veritas Finance Legal scrutiny    plays a critical role in helping the customers, wherever possible offering legal support and services to ensure that the customers get the properties secure and get clear and     marketable title deeds of their properties.