Topic
working capital
Trade Finance Credit vs Factoring in Trucking: Why Financial Fit Matters More Than Tool Type
According to FreightWaves, the choice between credit and factoring for trucking fleets depends on how well the financing aligns with daily operations. Credit provides liquidity for long-term investments but adds debt, while factoring converts invoices into immediate cash without debt. Skepticism around factoring often stems from poorly structured programs, not the concept itself.
Payment Delays Strain MSME Working Capital, Report Highlights Structural Gap
The Indian SME Receivables Report 2026 by Recordent reveals that delayed payments are severely straining MSME working capital, with average overdue receivables beyond 360 days at Rs 3.8 crore per firm and a national invoice payment cycle of 73 days, far exceeding regulatory guidelines of 45 days. The report, based on data from 1.1 lakh MSMEs and over 1 million transactions, identifies late payments as a key constraint on liquidity, growth, and financial stability.