Finance
Finance
SRTL's Business Support to MSMEs through Financing
We all know that the Steel business is one of the core sectors of our national economy, and most of the financial transactions are often done on credit, especially in the secondary steel market segment.
If you are a steel manufacturer from the MSME segment, no one understands
the prevailing pain points better than you. In the steel business, the cycle from purchasing the much-needed raw material to realising payment from the
end customer on the finished product takes a long time. Getting short-term working capital through the financial institutions or banks for an MSME on short
notice is challenging.
SRTL, trade finance is our innovative, customised finance support scheme.
We extend our trade financing support in the following cases depending on your requirements and cash flow situation.
Import/Raw Materials
Finance
Bill Discounting
Bidding and Auction
Barter System
Import Finance / Raw Materials Financing
Suppose you have received a confirmed PO (purchase order) from a client but may need enough cash to execute the order. SRTL extends you the required working capital at this critical juncture to buy the raw material (domestic/import) to fulfil the order, do the invoicing to the client, and receive your payment. Because the financing is based on the confirmed PO, you may call it purchase order finance. We extend you the trade finance support both for import and export to MSMEs.
Bill Discounting
Although India's steel business growth story aligns with the global trajectory, the secondary steel business
segment needs to manage chronic disorders like poor logistics, high taxes, duties, limited coking
coal supply, and high finance costs. Steel manufacturers often require immediate funding at a competitive market rate to survive and grow, especially when they
have ready orders.
SRTL understands the industry's pain points and supports the industry partners by facilitating invoice discounting. Our trade finance support at a reasonable market
rate helps the steel plant owners breathe and execute the order.
Under this friendly finance scheme, we at SRTL make some discounted cash available to the steel manufacturers. It is an easy access to finance to settle the supplier's
payment. And within a defined credit period, the manufacturers settle
the entire amount to us. It is a win-win situation for both of us where the manufacturer can continue the business, and we make a marginal profit on the transaction.
Bidding and Auction on behalf of the MSMEs
Cash flow or cash in hand seems to be a significant handicap for the MSME steel manufacturers here. SRTL comes to your rescue by participating in an auction event and procuring the bulk quantity of raw materials by bidding on your behalf. With our dedicated short-term finance support, your steel production line never stops, and we have a nominal percentage added as our profit margin, which you can settle with us later.
Barter System arrangement for finished goods
Barter System arrangement is a revolutionary business and finance support scheme for steel manufacturers operating in
the MSME space. After sourcing raw materials from us
and converting them into semi-finished or finished products, if the MSME enterprise encounters a cash crunch for some unforeseen reason, we at SRTL bail them out of the
crisis.
We buy out the entire production output pro rata with an acceptable price adjustment against the number of raw materials we supply. As a result, the steel enterprise refrained
from paying us further against the raw materials provided earlier.
Have a project in mind?👋
Looking for collaboration? Send an email to info@srtl.co.in to for vailable for enquires and collaborations,