The country is nearing a post lockdown shift, and businesses are gearing up to resume operations. But the MSME sector has suffered a huge blow due to the pandemic and many businesses are facing a cash crunch.
To meet the needs of the MSME sector and increase liquidity, the Government is introducing an economic relief package 2.0.
The current economic package of Rs. 1.7 lakh Crore includes:
- A ₹50 Lakh insurance for each health workers
- Daly wages for all unemployed labourers under the MNREGA Act (increased from 180-200)
- 5 KG Rice, pulses for over 80 crore poor people.
- For next 3 months under the Pradhan Mantri Garib Kalyan Ann Yojana
The MSME sector hopes the new package will help pay for over 110 million MSME workers who lost their jobs or had to take a huge pay cut. The relief package is shall release in 2 phases, for different sectors.
Other Government relief measures post lockdown:
RBI shall release a package of ₹20,000 crores, along with the economic relief package 2.0. This package is divided into –
Distressed Asset Fund: This fund is set to provide ‘turnaround capital’ to help small businesses recover lost cash. The RBI proposed that if 10% of the fund is invested as seed money into banks that are unwilling to pay equity, then those banks can restructure it for the MSMEs in the future.
Fund of funds: A ₹10,000 crore ‘fund of funds’ for MSMEs is issued by the RBI to help scale production to promote both quality and quantity. This fund is to help MSMEs attract foreign funding. This particular funding scheme aims to help logistics businesses. This also allows the government to pick up stakes in the SMEs while helping these businesses enhance their manufacturing abilities.
Instamojo tools to help business with lockdown:
Faster Payouts: Opting for faster payouts ensures you receive payments from your customers before the stipulated standard time period of 3 days. You can opt for the Next Day Payout, Same Day Payout or Instant Payouts feature.
Invoice Generator: Although the Government postponed GST filing, it is still important to maintain invoices of all your payments from vendors. Keep track of your invoices with the invoice generator app on Instamojo.
Online store: It’ll be a while before customers visit your store. Till then, set up an online store on Instamojo. You can set up your products/services on your online store and direct your customers to purchase them. Keep your customers
Staying cash flow positive
Keep cash flow steady in your business, at all times. Uncertain problems will crop up constantly, but the show must go on. Maintaining a steady inventory, To help you with your cash flow needs, we crafted a complete guide on keeping your cash flow positive.
We will let you in on an important tip: focus on cash flow management, not profit. This ebook will show you how.