wl-7026-Fintech Solutions for Supply Chain Financing of Small and Medium Enterprises in India

This study addresses a crucial gap in current research by exploring the potential of digital supply chain financing—specifically factoring and reverse factoring—to alleviate challenges faced by SMEs, including delayed payments, high-interest costs, and prolonged turnaround times. By analyzing a unique dataset of 115,648 factoring units and 1,228,256 invoices from an authorized Indian fintech platform , spanning the financial years 2020-21 and 2021-22, we provide valuable insights into the determinants of interest rates and financier participation. Our quantitative analysis reveals that the multifaceted interplay of credit dynamics, firm attributes, industry landscapes, geographical factors, competitive pressures, and the characteristics of financiers are influencing the price discovery and financier participation in fintech SME financing.