Access to capital is a make-or-break factor for India’s MSMEs. Despite their potential, many promising businesses are held back by traditional lenders’ stringent conditions and lengthy approval processes. This challenge is particularly pronounced in industries like manufacturing and production-based businesses where machinery and equipment are crucial. However, accessing capital to acquire or upgrade it can be daunting, especially for smaller enterprises, as proved by the fact there’s a credit gap of Rs 25 trillion in the MSME sector. This is where innovative financing solutions come in—empowering entrepreneurs to overcome obstacles, unlock growth potential, and achieve remarkable success.
The story of Printers Club of India, a leading B2B printing service provider, exemplifies the transformative power of the right lending partner.
Printers Club of India: Imprinting a Successful Business
Founded in 2018 by Aditya Singh and Nitin Namdev, both with a strong military background, Printers Club quickly established itself as a leading B2B printing service provider. Specializing in visiting cards, letterheads, and invoice books, the company also offers printing services to other printing businesses.
Their journey from a small-scale operation to becoming a nationwide printing services provider is a testament to the power of strategic investment and financial support.
Challenges in the Initial Phase
With an initial investment of Rs 2.5 lacs, the company’s journey has had various hurdles. Traditional lenders often imposed stringent conditions and lengthy approval processes, delaying or even hindering the company’s growth prospects.
Securing loans for machinery from lesser-known brands was a major challenge, as traditional lenders prioritized established names, viewing smaller ones as riskier investments. This lack of access to capital prevented Printers Club from reaching its goals, such as expanding production capacity, investing in new technologies, and maintaining cash flow.
To overcome this, the Printers Club of India secured a loan from a finance company. However, as Printers Club sought to scale up and needed additional finance, the lender prohibited them from obtaining a second loan until the first one was fully repaid. This meant tying up their capital and limiting their ability to invest in new opportunities, hindering the company’s growth.
A New Partnership with Protium Emerged
When the Printers Club approached Protium, its machinery finance solutions provided the much-needed financial boost to the enterprise. After a thorough evaluation, Protium extended a Rs 33 lakh loan to Printers Club, with quick loan approval and flexible repayment terms. This enabled the company to acquire the necessary equipment, enhancing its production capacity and efficiency. Additionally, Protium’s machinery financing from lesser-known brands, which was a significant challenge for Printers Club, further demonstrated their commitment to supporting the company’s expansion plans and vision.
The Pivotal Top-Up Loan
A turning point for Printers Club came when the enterprise sought to expand its operations with a top-up loan. Considering the company’s growth prospects, expansion plans, and vision, Protium offered the business flexibility in its policy. Despite a thorough evaluation, the documentation required for the top-up loan was eased, and the funding quickly acquired the necessary machinery without delay.
This flexibility enabled Printers Club to acquire necessary equipment, expand operations, and capitalize on growth opportunities. The tailored financing solutions were pivotal in Printers Club’s success, addressing unique challenges and empowering growth. As a result, the company has nearly doubled its turnover annually, reaching an impressive Rs 25 crores today.
The Power of Partnership
Printers Club’s story highlights the importance of supportive financial partners. Lenders empower MSMEs to overcome hurdles and achieve their full potential by providing timely and flexible financing solutions.
As the Indian economy continues to grow, it’s imperative that financial institutions, such as Protium, play an active role in nurturing the MSME ecosystem.