55,000+ companies ventured into services sector: Could these new entrants be the prospective targets for banks?
Heckyl Business Intelligence application identifies companies, who at some point in time, may require funds to finance their various business operations. Our BI engine identified 55,082 private limited companies that have ventured into the services business between Aug. 1, 2016 and Jul. 31, 2017. These companies were formed with an aggregate paid up capital of Rs 2,944 crores.
In our view, building early relationships with young companies could be relatively easier for banks than building new-relationships with established companies. Newly incorporated companies could be the potential targets for banks to offer various products such as working capital, long-term loans, payrolls, bill discounting etc. The banks can grow their business by tapping these young companies when they are in need of funding. Read the rest of this entry »