Page 40 - Banking Finance July 2025

ARTICLE

government schemes are available to MSMEs to help their accounting practices over time. Banking profes-
unlock credit. They need expert guidance to make sense sionals bring in planning and foresight into these pro-
of the various provisions, exclusions and access criteria. cesses, which will reflect positively in future financial

Limited access to tailored advisory services: MSMEs, statements.
particularly those in tier two, tier three cities, lack qual- Create awareness about regulatory matters: In an
ity, transparent and pocket-friendly advisory services. ever-evolving regulatory landscape, businesses struggle
There is a need to democratize access through digital to stay abreast of new developments. The services of a
platforms, bringing potential borrowers and intermedi- professional who monitors and advises businesses from
aries together for tailored credit advisory. time to time go a long way in improving compliance.

Help improve credit rating: Building a credit score re-
The Role that Retired Bankers Can Play quires long-term vision. Timely repayment and appro-
Demystify the complex process of accessing credit fa- priate utilisation of credit are the key pillars to building
cilities: Retired bankers can help businesses identify the a good credit profile. A repayment and utilisation plan
right scheme, right lender, or provision to improve the helps minimise downgrading risks.
success rate of loan applications. The Government of
India has introduced several schemes for MSMEs, such Stay engaged for business growth and scale: A credit
as the collateral-free scheme of Credit Guarantee Fund advisor's role does not end when a funding mandate is
Trust for Micro and Small Enterprises (CGTMSE). From fulfilled. It is important to nurture a long-term relation-
the Financial Year 2025-26, the credit limits under ship between a company and its credit advisor so that
CGTMSE have been enhanced as well but business own- its finance practices continue to evolve to keep pace
ers need guidance on these credit facilities. with newer business needs.
Draw up project finance plans: Project finance plans
are like a pitch deck used to present the plan for which Tech-driven Platform Bridging the Gap
a company is seeking funds. A professionally drawn up India needs niche digital platforms that connect its large pool
project finance plan makes a good impression on lend- of retired bankers to its cash-starved, growth-focused
ers. MSMEs. BankersKlub is addressing this need by leveraging
Manage & mitigate risk: Former bankers can support advanced technology and onboarding hundreds of former
in identifying, assessing, and mitigating financial risks bankers with deep expertise in diverse core banking skills
for MSMEs in the short, mid and long term. such as credit, compliance, treasury management, risk miti-

Prepare critical documents for fundraising: Quantita- gation, financial planning etc.
tive projections are an evaluation of the company's fi- Smart matching of advisors to businesses: The use
nances and utilisation of resources. Former bankers can of AI algorithms to do a first-level match of an advisor's
help MSMEs in preparing critical documents, such as the skillset, area of interest and geo mapping to a funding
Credit Monitoring Arrangement report and projected mandate.
financial statements that offer visibility to lenders into
Flexible arrangement: Offering advisors the flexibility
parameters, such as key ratios.
to work on a hybrid model, with a mix of virtual and
Improve turnaround time: Reports such as a ready- physical interactions, and a transparent, variable and
to-use financial health report and scorecard summarise consultancy fee-based model.
a company's financial stability and growth prospects.
Broad geographical reach: Connecting advisors to busi-
Such professionally prepared documents provide lend-
nesses across the country and providing them an op-
ers the insights they need and help hasten the decision-
portunity to use their financial wisdom to solve real-
making process.
world problems.
In the medium to long-term Guaranteed business: Improving their own financial
Handhold to improve accounting practices and pro- well-being with minimum guaranteed business to meet
cesses: With expert guidance, MSMEs can overhaul an advisor's appetite for growth on the platform.

36 | 2025 | JULY | BANKING FINANCE