Demystifying Finance for SMEs: How NBFCs and Banks Differ
Do you feel confused by the complicated financial puzzles? You have companionship. When trying to decide between dominant players like traditional banks and Non-Banking Financial Companies (NBFCs), small and medium-sized businesses (SMEs) often find themselves in a difficult position. To find the ideal financial partner to support you on your business's journey, look beyond deposits and loans.Come along as we navigate the nuances of NBFCs and banks in an effort to help SMEs like yours by demonstrating the financial landscape and easing some of the more confusing aspects of the journey. 1. The Regulatory Nitty-Gritty: Okay, so let's get the details. Banks are the heavy hitters; they follow the guidelines established by authoritative bodies such as the Reserve Bank of India (RBI). They've got a bunch of regulations to keep them in check. NBFCs, while also under the watchful eye of the RBI, have a bit more freedom in their dance moves. For you, the SME owner, this means un...