By: Nirav Choksi, CEO & Co-Founder, CredAble

“For the first time in five years, the RBI has cut the policy repo rate by 25 basis points to 6.25%. For small businesses, access to capital has always been about speed, flexibility, and sustainability. The 25-bps rate cut lowers the cost of funds, but the real opportunity lies in how FinTechs enhance credit limits for MSMEs. Traditional static limits don’t reflect business realities—fluctuating revenues, seasonal demand, and evolving cash flow needs. The future is dynamic credit allocation, where FinTechs use real-time transaction data, AI-driven risk assessment, and automated cash flow insights to adjust limits proactively. FinTechs can strengthen supply chain financing by enhancing liquidity across B2B ecosystems with flexible financing, allowing suppliers and distributors to access credit seamlessly at better terms. The opportunity now is to create tailored financing solutions that align with cash flow realities, ensuring that MSMEs don’t just survive economic shifts—they thrive in them.”