Small company operators in India face significant difficulties in obtaining capital for their various company operations. Due to a lack of collateral, exorbitant interest rates on business loans, and extensive paperwork requirements, businesses and startup owners are forced to seek other financing sources.

A vendor is a crucial part of a supply chain network. Vendors supply raw goods that are required for manufacturing products. Therefore, they influence the end-user experience indirectly. Due to regular payment schedules in particular sectors, small suppliers working for big enterprises may face working capital constraints. It implies that vendors may not get paid for the early delivery of goods and services, and they may need to wait for the clearing date.