This situation mainly arises when there is a high supply of products and no demand for it. Some factors that lead to it are: •Poor forecasting methods: Inaccurate demand forecasts lead to carrying too little or too much stock. •Seasonality: Producing forecasts that ignore seasonal demand variations is another key reason for a build-up of excess inventory. If you fail to identify items that are affected by seasonal demand, your forecasts for these items will never be accurate. •A lack of market knowledge: Adding qualitative forecasting aspects, or the ‘human factor’, to every forecast is important to prevent ordering too much stock. •Product lifespan: Growth, maturity and decline. At each stage a product’s demand will change. Many inventory planners fail to recognise or take account of the product life cycle in their forecasting. •Bad Marketing Campaigns: In some cases, a good and effective marketing can also help in clearing the excess inventory.

There are many schemes available in India for small scale industries and start-ups. The government as well as other financial institutions are providing assistance for businesses. The MSME schemes such as Collateral-free loan, Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE), MUDRA Loans, Stand-Up India etc. can be considered as an option. However, the eligibility criteria and terms and conditions need to be assessed before processing as it depends on the business plan and the amount of loan that you avail. Also, there are many other schemes provided by other financial institutions as well. Check with your nearest financial institution/bank for further guidance. You can contact any of the reputed consultancies or put advertisement to get manpower support for your organization. You may also join Business groups such as BNI to build contacts and get a foothold in the market.

1) The financial institutions may consider your repayment history and credit score for loan top-up. But when you are having multiple business loans – the eligibility / loan sanction depends on the type of loan scheme and the financial service provider you have. Top-up of existing loans can be facilitated approaching your lender by understanding the terms and condition of your loan availed. The key objective of a comprehensive and timely top-up loan will help you to get access to sufficient finance to sustain businesses. You may request your bank / NBFC to relax the terms and conditions of your existing loan. This may result in discount of charges, dropping of interest rate, increase of the loan tenure, etc. If your reasons are genuine, the banks / NBFC usually give you leeway. Since various financial institutions have various rules / terms and conditions regarding loan top-ups, you may visit their official website or call the customer care number given on their official website. Many Banks and other Financial Institutions have also come up with new products, catering to the financial needs of the customers during these difficult times. E.g. Muthoot Fincorp also has some exciting gold loan products, details of which you can find on the www.muthootfincorp.com website. Ashwas Dinam Gold Loan which is specifically for traders and Super Value Gold Loan are products to help people in need. 2) Not paying equated monthly instalments (EMIs) on time. has a negative impact on your credit history. Even if you have missed a single payment or EMI, it will be reflected in the report and decreases the CIBIL score. Also, all the future borrowings will be affected if the payment is still due. Opting for moratorium will not impact your creditworthiness. You will not be reported as an NPA (Non-Performing Assets) or no adverse reporting will happen to CIBIL. However, it is certain to impact your debt raising capabilities in the short term. In the next three to 12 months, bankers are likely to be vigilant, while sanctioning EMI-based credit facilities to customers who have availed EMI moratorium. This is because of the uncertainty on your capability to handle the full burden of your EMIs after the moratorium. 3) Due to the repercussions of Covid-19, in March The Reserve Bank of India (RBI) announced that all lending institutions, such as banks, non-banking finance companies (NBFCs) and housing finance companies be provided a three-month moratorium on all term loans payments falling between March to May 2020. And this was further extended for another three months by the central bank till August 31 2020. Banks/Financial institutions levy a penalty fee on the borrowers if they miss paying their EMI. However, they are not allowed to levy these charges from borrowers whose EMI moratorium request has been approved. During this six months’ time, banks are not expected to raise any demand by way of NACH cheque collection, ECS, auto-recovery and standing instruction from borrowers whose EMI moratorium request has been approved. As per the bank’s policy, the applications that are approved for moratorium will not be levied any bounce charges. If any such charges are levied, necessary corrective steps are being taken by the bank. However if you have not availed the moratorium, then you will be liable to pay the EMI bounce charges, the late penalty may not be charged. It is also important to find out the guidelines of your bank as different banks may have different procedures. 4) Your EMIs may be considered under the moratorium period by your financial institution subject to the nature, terms and conditions of the loan you have availed. Also, restructuring of existing loans can be facilitated by methods like Debt rescheduling and Interest rate deduction. You may request your bank / NBFC to relax the terms and conditions of your existing loan. This may result in discount of charges, dropping of interest rate, increase of the loan tenure, a moratorium on interest, etc. If your reasons are genuine, the banks / NBFC usually will give you leeway. Loan restructuring may be implemented only if you want to improve tasks and reconsider your strategies for growth. The Government of India has announced a package called “Atma- Nirbhar Bharat Yojana” for the Small business group. It is a major boost to the MSME sector, collateral free loan of 3 lakh crore rupees has been declared with a moratorium of 12 months. You can visit your nearest public-sector bank / NBFC for opting suitable scheme as per your eligibility. 5) The bank / NBFC shall consider your credit score for loan approval. In most cases, it is easier to get approval for the loan if your credit score is above 650-700. But when you are having multiple business loans – the eligibility / loan sanction depends on the type of loan and the financial service provider you are approaching. Also it may result in ‘loan stacking’ - a cash advance or a loan that is approved on top of a loan or advances that already exists with very similar terms and conditions. Loan stacking is possible however most of the financial advisers may not recommend the same. If you avail moratorium, it may lead to a debt that is out of control, which may be bad for your business. Opting for moratorium will not impact your creditworthiness. You will not be reported as an NPA (Non-Performing Assets) or no adverse reporting will happen to CIBIL. However, it is certain to impact your debt raising capabilities in the short term. In the next three to 12 months, bankers are likely to be vigilant, while sanctioning EMI-based credit facilities to customers who have availed EMI moratorium.

Yes, Opting for moratorium will not impact your credit-worthiness. You will not be reported as an NPA (Non-Performing Assets) neither will an adverse reporting happen to CIBIL. However, it is certain to impact your debt raising capabilities in the short term. In the next three to 12 months, bankers are likely to be vigilant, while sanctioning EMI-based credit facilities to customers who have availed EMI moratorium. This is because of the uncertainty on your capability to handle the full burden of your EMIs after the moratorium. This moratorium by no means is a loan waiver. Repaying your loans is a legal and moral obligation, and this moratorium does not change that. So, if your cash flow hasn’t changed much in these months, you should ideally try to clear your dues without the help of the moratorium, especially when it comes to high interest-charging debt.

It's time to go digital in your marketing. The best way to sustain and grow the business is to widen your audience and target market. Using tools and technology that fit in your budget, finding social media channels that give visibility, collaborating with networks of individuals and also perhaps redefining your products. Gift articles that are very unique and sometimes personalized work better. Also understanding what avenues you are getting competition from.

Most businesses today are facing issues in the supply chain because of the looming uncertainties of lockdown, containment etc in various parts of the country (and the world). However, the good news is that these issues are gradually getting sorted, as more and more logistics companies adopt contactless, digital delivery standards. For a start, check the standards that your supplier is following. If there are other players in your industry (competitors) being able to procure their raw materials, try to identify how those companies are handling their logistics. Try to adopt those methods temporarily at the very least. If your business has a way to source the raw materials locally (nearer to your base, for eg- local farmers), now would be a good time to explore those options.

Digital transactions are defined as transactions in which the customer authorizes the transfer of money through electronic means, and the funds flow directly from one account to another. The different modes of digital payment include the use of debit/credit card, internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile banking, Electronic Clearing Service (ECS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), etc. These accounts could be held in banks, or with entities/ providers.A secure, reliable and smooth transaction is what a modern day online customer seeks, and it is possible to achieve this through new forms of digital payments. Customers are now becoming more receptive to various modes of online payments, due to the convenience and flexibility involved in the process.

Covid-19, as we all know, spreads through droplet infection. So, if an infected person has sneezed or coughed into his/her hand and we accept the cash/currency from his un-sanitised hand to us, there is a chance that the germs will spread to us and we catch the infection. Therefore there is a need to use digital transactions as much as possible, to avoid spread of the disease by touch. In case we are unable to adopt digital payment/receipt modes, we should wear gloves or immediately sanitize our hands after receiving cash or currency from anybody to ensure ours and the safety of others too. Let's Break The Chain!

As a Kirana store owner, know that the people in your immediate neighborhood are your best friends and best customers. Even before you take the business online, maintain a good relationship with people that frequently visit your store, and the people that live in your neighborhood, so that they are motivated to buy from you regularly. Even offering a genuine smile to your customers could create a big impact.Next, try to connect with them on chat such as Whatsapp. Encourage your customers to send you their grocery shopping list on whatsapp so that you can keep the items ready for them to pick up. You could also try to have the items delivered in person to your customers.Adopt payment systems such as PayTM or GooglePay or PhonePe at your store so that it is easier for your customers to make payments to you, even if they are away from you.Remember, this is the time to limit selling items on credit. Ensure that you make all collections before the end of each day.

It’s a good idea to immediately focus your attention to 2 important things: the kitchen, and delivery to customers.Pay close attention to everything that goes in and out of the kitchen-- the quality of ingredients for cooking, the standards and procedures you have set to prepare nutritious, wholesome food in a clean and well-sanitized environment. Highlight these standards to your customers-- as your effort to fight the pandemic.Remember, in a situation without personal interaction, the quality and nutrition of your food will speak the most to your customers.To sustain your cash flow, you could partner with a food delivery company such as ‘Zomato’, ‘Swiggy’ etc. We also recommend coming up with ‘meal subscription’ options for people that live close to your restaurant so that you have assured business coming in every day.In case you’re running the restaurant out of a rented property, control costs by negotiating with the landlord. Discuss the fact that only the kitchen portion of the restaurant is in a position to generate any income at this stage. This is a good time to strengthen your ties with your suppliers as well, so that they offer better flexibility with your payment terms.