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Here is a simple suggestion to mitigate the risk of startups/small businesses collapsing across India.
1. The Government should have a scheme for a 6 month line of credit for all registered startups or small companies.
2. Low interest rate, and no fixed collateral (1/3)
1. The Government should have a scheme for a 6 month line of credit for all registered startups or small companies.
2. Low interest rate, and no fixed collateral (1/3)
3. Loans to be sanctioned on the basis of the audited ACTUAL cash burn over the previous 6 months
4. Loan to be repaid in 2 years
Perhaps can add a feature saying that If the loan isn't repaid, it converts to equity at the previous round funding (2/3)
4. Loan to be repaid in 2 years
Perhaps can add a feature saying that If the loan isn't repaid, it converts to equity at the previous round funding (2/3)
5. The government can rope in banks and NBFCs to help with this.
6. Quick simple scheme, with online cash disbursement.
The scheme is liquidity/funding support - and may not cost that much. But it can save lakhs of companies, and millions of jobs.
What do you think?
(3/3)
6. Quick simple scheme, with online cash disbursement.
The scheme is liquidity/funding support - and may not cost that much. But it can save lakhs of companies, and millions of jobs.
What do you think?
(3/3)
