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Written by Gregg Elberg
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Monday, 05 November 2007 |
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Word Count: 823 Accounts Receivable Financing- The India Connection
India is one of the oldest civilizations in the world. Their history goes
back over 10,000 years. India is the largest democracy in the world. As of July,
2007, the Central Intelligence Agency for the United States Government estimated
that the population of India is over one billion, one hundred twenty nine
million people. In contrast, the population of the United States is estimated to
be a little over three hundred two million people. That’s 129,000,000 versus
302,000,000 people; India has over four times the population of the U.S. in a
geographic area lightly more than one-third the size of the U.S.
India has the third largest economy and the second fastest growing economy in
Asia. It has a vast pool of professional talent and an enormous reservoir of
intellectual capital with a growing middle class.
India’s dense population creates economic opportunities and pressing internal
social problems such as overcrowding, environmental degradation, poverty and
social unrest. The economy and society are in a state of rapid transition. There
are pressing environmental issues because of overpopulation such as air
pollution from industrial effluents and vehicle emissions, water pollution from
poor sanitary conditions and soil erosion.
According to the World Bank, about 380 million people in India live in poverty
on less than $1 a day; this is about one-third of the population. Nevertheless,
middle and upper class Indians have created immense wealth in an economy
bursting with opportunities. India’s business climate is changing rapidly.
This social paradox is in some ways similar to the controversy in the U.S. over
big box stores and their effect on smaller retailers. The same issue is debated
in India regarding Western style supermarkets versus mom and pop stores. India
has a child labor problem; the U.S. has a problem with illegal immigrants who
tend to take the lowest paid jobs in the U.S., performing jobs that most legal
Americans do not want to do. We live in a world of conflict, change and
opportunities.
There are 14 official languages in India. Hindi is the national language.
English is a secondary language used for national, political and commercial
communication. India is the largest English speaking nation in the world.
India’s legal system is based on English common law.
India’s economy is growing over 10% per year with a labor force of more than 500
million people. The Indian retail sector is growing at a rate of 47% per year.
Manufacturing is expanding. There are large numbers of well educated people
skilled in the English language. Today India is a major exporter of software
services and software workers. Other major industries include textiles,
chemicals, food processing, steel, transportation equipment, cement, mining and
machinery.
In 2006 India exported over $123 billion dollars of textile goods, gems and
jewelry, engineering goods, chemicals, leather items; only 17% were exported to
U.S. partners. Imports the same year were $184 billion dollars; less than 6% of
this import business originated with U.S. partners.
What does this all have to do with accounts receivable financing? The expertise
of a commercial finance company can be invaluable with regard to helping you
succeed in India’s enormous marketplace. If you want to export goods to India, a
commercial finance company will check the credit of the business in India that
you are selling to; this can facilitate capital for exponential growth to
creditworthy customers. If you want to import goods from India, purchase order
financing combined with accounts receivable financing can help you to achieve
the same goal of increasing cash flow to grow your business.
Albert Einstein said: “We owe a lot to the Indians, who taught us how to count,
without which no worthwhile scientific discovery could have been made”. Mark
Twain said: “India is the cradle of the human race, the birthplace of human
speech, the mother of history, the grandmother of legend, and the great grand
mother of tradition. Our most valuable and most instructive materials in the
history of man are treasured up in India only”.
The bottom line: India is a land of great problems and great opportunities.
Accounts receivable financing combined with purchase order financing can help
you succeed in this vast democratic, English speaking marketplace.
Copyright © 2007 Gregg Financial Services
www.greggfinancialservices.com
Mr. Elberg is a licensed attorney and licensed real estate broker. Gregg
Financial Services is a full service brokerage for commercial finance companies
and banks that fund B2B businesses. We work with all industries and can arrange
financing transactions throughout the US and Canada, Mexico, Australia, India
and several areas of Europe including the UK, Ireland, France, and Poland. Mr.
Elberg arranges funding from $25,000 to $50 million per month at competitive
pricing, and works to reduce your financing costs as your company grows. For
more information about GFS, please call 888 482 9221 or visit our website:
http://www.greggfinancialservices.com
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