GST Analytics help lenders make SME lending decisions

How GST Analytics help Lenders make SME Lending decisions?

As the world moves ever closer to a digital economy, lenders are finding it increasingly difficult to make sound decisions regarding lending to Small and Medium Enterprises (SMEs). With GST analytics, lenders can now use data-driven insights to assess a loan’s risk accurately. In this blog post, we will explore the benefits of GST analytics for lenders and how they can use it to make better SME lending decisions. We’ll also look at how it can be integrated into a lender’s existing systems and processes to maximize its potential. Also, how it can help build customer trust and ensure that lending decisions are fair, accurate, and transparent.

What is GST Analytics?

GST analytics is a data-driven approach to decision-making that can help lenders better assess the creditworthiness of small and medium enterprises (SMEs). It is a cloud-based software platform. It helps lenders assess the creditworthiness of small and medium enterprises (SMEs) by leveraging data from the Goods and Services Tax (GST) network. As a result, GST Analytics allows lenders to make faster and more informed lending decisions by giving them real-time visibility into an SME’s financial health and business performance.

By understanding an SME’s past performance concerning GST compliance, lenders can predict future repayment behavior more accurately and make informed lending decisions.

In addition to helping assess creditworthiness, GST analytics can also help identify opportunities for improvement in an SME’s GST compliance. This information can be used to develop targeted assistance programs that can help SMEs improve their GST compliance rate and, as a result, their access to credit.

How can GST Analytics help lenders?

Small and medium enterprises (SMEs) are the backbone of any economy, and lending to them is crucial for economic growth. However, lending to SMEs can be risky, as they often don’t have the same level of financial transparency as larger businesses.

In addition to challenges arising from the wider business infrastructure, seven key challenges are associated with assessing credit risk. 

  1. Financial information – level of detail, reliability, timeliness
  2. Difficulty predicting future cash flow
  3. Accuracy or relevancy of rating models
  4. Process efficiency and system infrastructure
  5. Data, reporting, and audit requirements
  6. Problem loan management
  7. Business model sustainability

This is where GST Analytics can help. It can help lenders make informed and accurate lending decisions by providing detailed data and insights on SME financials. Here’s how:

  1. Detailed data on SME financials: It provides detailed data on SME financials, including revenue, expenses, cash flow, and more. This data can help lenders understand an SME’s financial health and assess their creditworthiness.
  2. Insights on SME Payments: It also provides insights on SME payments, including late payments, payment terms, and payment history. This information can help lenders assess an SME’s credit risk and make more informed lending decisions.
  3. Real-time alerts on repayments: GST Analytics’ real-time alerts notify lenders of any changes in an SME’s payment behavior. This allows lenders to identify potential red flags and take appropriate action quickly.
  4. Access to expert support: The team can provide support and advice when needed. This ensures that lenders always have access to the latest information and insights when making lending decisions.

What data is used in GST Analytics?

The GST Analytics solution uses data from various sources to help lenders make SME lending decisions. This data includes:

  • Financial data: This includes data on the financial performance of the business, such as revenue, expenses, profit and loss, and cash flow.
  • Tax data: This includes the GST paid by the business and any GST refunds received.
  • Transaction data: This includes data on the sales and purchases made by the business, as well as any payments made.
  • Customer data: This includes data on the business’s customers, such as contact details and purchase history.

What are the benefits of it for SME lending decisions?

GST Analytics is a powerful tool to help lenders make more informed and efficient small and medium enterprise (SME) lending decisions. By providing access to data-driven insights into the financial health of SMEs, GST Analytics can help lenders 

  1. assess credit risk, 
  2. identify opportunities and trends, and 
  3. make better-informed lending decisions.

GST Analytics can help lenders assess the financial health of an SME by providing key insights into their business operations, financial history, and creditworthiness. This information can help small businesses to provide lenders with a secure and verifiable trail of transactions in their supply chain. This will give a true picture of its financial health. As a result, this facilitates trade financing, which is the provision of loans against invoices for such micro and small businesses, since GST data can also be used to determine the creditworthiness and reliability of the other party.

In addition, GST Analytics can also help lenders identify opportunities and trends in the SME lending market, allowing them to take advantage of new business opportunities and stay ahead of the competition.

How to get started?

If you’re a lender looking to make more informed lending decisions for small and medium enterprises (SMEs), GST analytics can be a valuable tool. Signzy’s GST analytics helps lenders identify potential growth areas within their portfolios and establish competitive strategies to take advantage of those opportunities. With the use of GST Data, the entire process gets automated, and with the client’s consent, the entire GST history can be accessed. Thus, providing an estimate of the client’s creditworthiness and financial position within minutes!

Also, real-time access to GST data eliminates the need for excessive paperwork. With a 45% higher completion rate and 30% faster underwriting, our solution can help lenders to get 25% more approvals! Also, lenders can develop more effective marketing strategies and efficiently target customers with this information.

In addition to lenders and banks, MSMEs and other businesses benefit from leveraging GST data for credit underwriting by reducing business costs. Providing an opportunity to use authentic data eliminates the need for operational work, which reduces risk in lending to an incredible degree.

Fast-track loan approvals: The platform’s automated underwriting capabilities can help lenders to fast-track loan approvals for SMEs.

Make better use of data: With its powerful data visualization tools, GST Analytics can help lenders to make better use of data when making lending decisions about SMEs.


The GST marks a major milestone in the market reforms required by the Indian economy. The government is taking strides to regularize the financial setup, making several updates to the filing and implementation process, as reviewed by its committee. This has drastically changed SMEs’ operations, representing an essential juncture in India’s success journey. More revisions are to come as the system evolves.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

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