With the global invoice factoring services market projected to reach $5,872 billion by 2031, digital supply finance platform Cashinvoice announced a partnership with SBI Global Factors Limited on Monday, March 11, to broaden the base use of factoring solutions for MSMEs in India.

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With this partnership, Indian MSMEs will have easier access to credit and a reduced need for working capital, which are the two benefits of invoice factoring, according to the official press release.

Bharat Mishra, CEO of SBI Global Factors, stated, "At SBI Global Factors, our dedication lies in empowering the growth of MSMEs through innovative financing solutions. Cashinvoice's advanced technology simplifies the creation of scalable factoring portfolios, streamlining the entire process. This breakthrough promises to significantly ease the factoring journey for financiers. Together, with Cashinvoice, we expect to bring a substantial impact in the invoice financing market."

Demand for invoice factoring, an essential part of trade finance, has increased dramatically on a worldwide scale. While there has been growth in this sector in India, especially since the Trade Receivables Discounting System (TReDS) was implemented, there is still a great deal of room for domestic market expansion, the release also stated.

Arun Poojari, Founder and CEO of Cashinvoice, added, "The increased demand for MSMEs to find prompt financial solutions to meet their business objectives is propelling the factoring solutions market forward, and we're excited to embark on this journey of facilitating these services to a vast pool of MSMEs with SBI Global Factors. By combining our technological prowess with SBIGFL's network and resources, we're positioned to chart new territory in the invoice financing space while offering innovative factoring solutions for our anchor customers. Through this collaboration, we are targeting to finance invoices worth over Rs 3000 crore in FY 24–25.”

The three crucial processes of onboarding, documentation, and receivables assignment will all be digitised by Cashinvoice, which will speed up the factoring process and provide financiers with scalable factoring options.

Additionally, it serves a wide market by enabling factoring receivables from buyers regardless of whether or not they are enrolled on its platform. With the introduction of this creative solution, MSMEs' formal loan access is expected to increase by more than 30 per cent over the next three years.