In Q3, 80% of SMEs anticipate an increase in domestic orders
investing finances
A majority of Small and Medium Enterprises (SMEs) expect their domestic order book to increase in the third quarter of this year due to the pick-up in demand.
Based on improved confidence, small businesses plan to increase capacity utilization to 60% in Q3 2022, up from 55% in Q2 2022.
While the RBI has been drawing monetary policy compelled by inflation, SMEs do not find any concern with regard to the availability of credit.
Beneficial thing is that the RBI credit policy statement gave a confirmation that enough liquidity would stay in the market.
Large companies both in the private and public areas to guarantee that their SME merchants are compensated fairly in time so the instalment and receipts cycle stays smooth and consistent.
It is important to meet the working capital needs of SMEs in time, especially as the festive season promises a faster recovery, especially for SMEs in manufacturing and services.
Additionally, timely payment of utility bills and tax refunds will benefit small businesses.
According to the survey, 79% of respondents expect access to credit to be normal in the Q3, up 1% point from the previous quarter's trend line.
And this despite the increase in interest rates in recent months and the continuation of the same in the near future.