Accounts Receivable Financing- The India Connection

Accounts Receivable Financing- The India Connectionnational language. English is a secondary language
explores the vast growing marketplace in India andused for national, political and commercial
how you can benefit from this trend by importingcommunication. India is the largest English speaking
goods or exporting goods to this ginormousnation in the world. India's legal system is based on
economy with accounts receivable financing.English common law.
India is one of the oldest civilizations in the world.India's economy is growing over 10% per year with a
Their history goes back over 10,000 years. India islabor force of more than 500 million people. The
the largest democracy in the world. As of July, 2007,Indian retail sector is growing at a rate of 47% per
the Central Intelligence Agency for the United Statesyear. Manufacturing is expanding. There are large
Government estimated that the population of India isnumbers of well educated people skilled in the English
over one billion, one hundred twenty nine millionlanguage. Today India is a major exporter of
people. In contrast, the population of the Unitedsoftware services and software workers. Other
States is estimated to be a little over three hundredmajor industries include textiles, chemicals, food
two million people. That's 129,000,000 versusprocessing, steel, transportation equipment, cement,
302,000,000 people; India has over four times themining and machinery.
population of the U.S. in a geographic area lightlyIn 2006 India exported over $123 billion dollars of
more than one-third the size of the U.S.textile goods, gems and jewelry, engineering goods,
India has the third largest economy and the secondchemicals, leather items; only 17% were exported to
fastest growing economy in Asia. It has a vast poolU.S. partners. Imports the same year were $184 billion
of professional talent and an enormous reservoir ofdollars; less than 6% of this import business
intellectual capital with a growing middle class.originated with U.S. partners.
India's dense population creates economicWhat does this all have to do with accounts
opportunities and pressing internal social problemsreceivable financing? The expertise of a commercial
such as overcrowding, environmental degradation,finance company can be invaluable with regard to
poverty and social unrest. The economy and societyhelping you succeed in India's enormous marketplace.
are in a state of rapid transition. There are pressingIf you want to export goods to India, a commercial
environmental issues because of overpopulation suchfinance company will check the credit of the business
as air pollution from industrial effluents and vehiclein India that you are selling to; this can facilitate
emissions, water pollution from poor sanitarycapital for exponential growth to creditworthy
conditions and soil erosion.customers. If you want to import goods from India,
According to the World Bank, about 380 millionpurchase order financing combined with accounts
people in India live in poverty on less than $1 a day;receivable financing can help you to achieve the same
this is about one-third of the population. Nevertheless,goal of increasing cash flow to grow your business.
middle and upper class Indians have created immenseAlbert Einstein said: "We owe a lot to the Indians,
wealth in an economy bursting with opportunities.who taught us how to count, without which no
India's business climate is changing rapidly.worthwhile scientific discovery could have been
This social paradox is in some ways similar to themade". Mark Twain said: "India is the cradle of the
controversy in the U.S. over big box stores and theirhuman race, the birthplace of human speech, the
effect on smaller retailers. The same issue is debatedmother of history, the grandmother of legend, and
in India regarding Western style supermarkets versusthe great grand mother of tradition. Our most
mom and pop stores. India has a child labor problem;valuable and most instructive materials in the history
the U.S. has a problem with illegal immigrants whoof man are treasured up in India only".
tend to take the lowest paid jobs in the U.S.,The bottom line: India is a land of great problems and
performing jobs that most legal Americans do notgreat opportunities. Accounts receivable financing
want to do. We live in a world of conflict, change andcombined with purchase order financing can help you
opportunities.succeed in this vast democratic, English speaking
There are 14 official languages in India. Hindi is themarketplace.