Few SMEs are able to either sign up or extend already existing loans or cash credits as they fall short on their capability to submit the required information to banks accurately & in a timely fashion. Reasons for such non-compliances could be many ranging from owners’ attitude towards compliance in general, or company staff’s incompetence or lack of accurate business information. Most, if not all, SMEs are unable to submit accurate information to banks primarily due to lack of systems and processes. For a large majority, support processes are handled manually with minimum use of reliable form information technology leading to inaccurate data.
Manual processes and the associated record keeping are subject to risks of human errors, duplication of work, mismatching information about the same transaction as recorded by two different departments and so on. To top this all up, it takes quite some time to come out with meaningful reports. In today’s world, information not received on time is as bad as not having the information. Needless to say, banks that have extended credit to the company are also on the receiving end of this situation. This problem can be, amongst of host of many other challenges, can be easily resolved if SMEs start using SAP Business One, which is an ERP application developed by SAP SE especially for this segment. Using SAP Business One, users from various departments can enter relevant transactional information in the very same system in real time and can refer to the data at any point in time by a click of the mouse.