Online tax software and FinTech provider Clear has moved into lending and rolled out its new invoice discounting product for small and medium-sized enterprises (SMEs), Economic Times reported on Monday (February 28th).
According to the report, Clear’s new product for bill discounting will be available to its existing customers, and bill discounting as a practice can help enable small businesses to obtain loans and credit from institutions. financial.
Clear Founder and CEO Archit Gupta said the company’s goal is to provide technology-based solutions for business-to-business (B2B) needs.
“We partner with banks and NBFCs (non-bank financial companies) to operationalize supply chain credit at scale by enabling fast and cost-effective credit based on actual business performance and not just on asset ownership,” he said.
Clear already provides a Software-as-a-Service (SaaS) platform for customers, which helps businesses pay their bills and issue electronic invoices, by providing the necessary underwriting capabilities. The company is also reportedly focused on more international expansion.
PYMNTS wrote recently that India’s new mandatory e-invoicing rules will have far-reaching impacts.
See also: India’s new B2B e-invoicing rule could impact 180,000 businesses
The new rules were imposed on companies in waves, first made mandatory for companies with a turnover of ₹500 crore or more in October 2020, then extended to those with ₹100 crore, then ₹50 crore, and recently to anything with an annual turnover above ₹20 crore or more.
The report says that all of this will help regulate the country’s Goods and Services Tax (GST).
A business may have multiple GST identification numbers if it operates a business in two or more states or union territories, or if the registration process involves multiple lines of business.
An anonymous official said the electronic invoicing process can track invoices in real time and reduce the extent of ongoing fraud. The official said the country hoped to add another 75% to 80% by lowering the threshold this final time.