Red Fort Capital Launches Invoice Discounting Solution to Boost MSME Working Capital

Red Fort Capital Finance Company, an NBFC lender to small businesses, has introduced an invoice discounting solution to assist MSMEs in managing working capital gaps. This financing arrangement involves selling unpaid bills to a third-party financier, like a bank, at a discounted rate for quick access to working capital. Red Fort Capital aims to empower businesses with flexible lending options. Invoices ranging from Rs 20 lakh to Rs 1 crore (unsecured) and up to Rs 3 crore (secured) can be disbursed within 24 hours, covering up to 90% of the invoice value.

All the sectors are eligible to apply excluding construction and education. Red Fort Capital recently secured term loans for MSMEs and specializes in secured business loans ranging from Rs 1 crore to Rs 10 crore. The Reserve Bank of India (RBI) increased risk weight for various types of lending, but the NBFC body FIDC cautioned that this could adversely impact credit flow to MSMEs and urged the RBI to reconsider.