ReshaMudra with its unique credit offerings is resolving financial hurdles for the stakeholders of the natural fibres supply chain empowering successfully business growth

1. RESHAMUDRA INVOICE
FINANCING BENEFITS
WEAVERS, FABRIC
MANUFACTURERS AND
RETAILERS

3. Effective management of cash determines success in business. Given the
unpredictable nature of trade in the textile industry.
 There will be instances when working capital or money gets stuck in the
business, jeopardizing profitability and growth plans.
Stakeholders of the natural fibres supply chain like weavers, fabric
manufacturers, and retailers operate their businesses on stringent budgets.
 Whenever a gap arises between the point at which a sale happens and the time
payment is received from the debtor, it negatively impacts their business.
As there is limited scope and time to approach banks to raise loans, there is nil
cash flow. So, how can this problem be tackled?

4. RESHAMUDRA INVOICE FINANCING
• ReshaMudra Invoice financing bridges the gap between the time a sale occurs and the
time at which the debtor receives the payment in the natural fibres supply chain.
• It enables weavers, fabric manufacturers, and retailers to pay their associates and
suppliers on time.
• It enables them to pay their associates and suppliers based on unpaid invoices.
• Let us understand the working capital cycles of stakeholders of the natural fibres supply
chain before we delve into the benefits associated with invoice financing.

5. WORKING CAPITAL CYCLE OF WEAVERS,
FABRIC MANUFACTURERS & RETAILERS
WEAVERS
They have a 60-day working capital cycle, this sector is classified as a cottage
industry credit is scarce and limited to a select few. Although weavers can get up to
30 days of credit from reelers, they are forced to pay faster in order to access
quality yarn. The majority of the fabric crafted by weavers is purchased by
corporate or fabric houses with a credit period of 45 – 60 days.

7. FABRIC MANUFACTURERS
They sell their finished fabrics for cash, extended payment terms are available
on a case-by-case basis, these payment terms are only valid for 45 days.
However the cycle of fabric conversion to garments and credit to customers
exceeds 90 days affecting the fabric manufacturers’ credit cycle, Credit
availability in this segment is moderate.

8. RETAILERS
They are at the tail end of the supply chain, serving end users, inventory is the
most expensive cost for a retailer. Given the variety of materials to be
maintained and inventory replenishment cycles, an average retailer with a
single-store operation will have an inventory holding period of 90 days, while
a multi-store operation will have an inventory holding period of 120 days.
This, combined with a supplier’s credit availability of 60 days, results in a 60-
day working capital gap.

10. BENEFITS ASSOCIATED WITH
RESHAMUDRA INVOICE FINANCING
Ease of paying suppliers, and associates when capital is stuck
Cash discount to increase profitability
Up to 60 days credit period
Easy repayment with daily interest rate calculation & Off-balance sheet financing
UPFRONT CASH PAYMENT
ReshaMudra invoice financing provides an upfront cash payment to suppliers of weavers,
fabric manufacturers, and retailers. This resolves the problem of working capital and also
helps the stakeholders negotiate a cash discount of up to 5 to 6% as per market standards.
This manifests as an excellent opportunity for the stakeholders to increase their bottom-line
post netting of interest payments

11. EXTENDED WORKING CAPITAL
ReshaMudra invoice financing also helps weavers, fabric manufacturers, and retailers by
facilitating payment to their suppliers at the end of the credit period offering an extended
credit time of up to 60 days. This ful fills their working capital needs without hampering
any day-to-day financial requirements giving additional financial assistance for
stakeholders to boost their sales and revenues.
ReshaMudra with its unique credit offerings is resolving financial hurdles for the
stakeholders of the natural fibres supply chain and empowering them to successfully
grow their businesses.

12. ReshaMudra
Contact: +91 9901300605
Email: support@reshamudra.com