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Vayana Network, a supply chain financing platform, has partnered with CRIF India, an RBI-approved credit bureau, to introduce the Good Business Score (GBS). It is a tech-based tool to help Indian MSMEs measure and manage their business health effectively.
With more than 60 million micro, small and medium enterprises, the MSME sector is one of the largest contributors to India’s economy. However, measuring the success of these businesses has always been a challenge, with credit scores being one of the only available factors.
New business leads
GBS will help MSMEs signal their worth to prospective business partners, stand apart from competition, and improve by understanding their own strengths and weaknesses. The score is based on ongoing GST data, from which parameters such as frequency, recency, value of actual transactions and business dependency across customers, are derived. A good score can also serve as a certificate to attract new business leads. By measuring the score periodically, it can also become a diagnostic tool for making corrections and improvements.
GBS can be accessed by businesses on the Vayana Network platform, where all merchant data is secured and confidential. For corporates, the GBS score will provide a real time pulse of the robustness of their MSME supply chain partners. Similarly, for financial institutions, GBS works as an evaluation tool for getting an ongoing pulse of borrowers, helping them predict and reduce lending risks.
“At Vayana Network, we have always strived to work towards taking businesses to the next level through our digital solutions. Through the Good Business Score, we aim to provide MSMEs with a tool that reflects the real picture of business health. This will enable better control and management of business operations, contributing to the larger cause of providing an environment of growth and stability for the MSME sector. With GBS, corporates and lenders too will now have a credible source to monitor and measure the health of supply chain partners or business loan borrowers” said Parthasarathi Patnaik, Chief Risk Officer, Vayana Network.
Vayana Network is one of India’s largest supply chain finance platforms, having enabled over $6 billion in trade finance for 300 supply chains in 25 different industries and empowering 10,000 MSMEs. With its proprietary technology, Vayana has processed over 1.7 million transactions with zero NPAs to date. With GBS, the company is targeting to empower 1 lakh MSMEs in the next 12-18 months. CRIF is a global group headquartered in Europe, and in India it offers products and services for credit information, business information, analytics, scoring, credit management, and decision solutions.
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