OCF Rules for Growth
Investor Rajesh Singla shared thumb rules for operating cash flow and working‑capital cycles — e.g., stable WC days and ~10% PAT margins can support ~40% organic growth without external finance, and firms often 'credit‑graduate' around ₹200‑500Cr revenue. Those benchmarks are practical triage metrics for working‑capital lenders assessing scalability risk. (x.com)
Rajesh Singla’s X thread kicked off a quick re-run of underwriting playbooks as lenders face a swelling MSME credit stack that crossed roughly ₹40 trillion in outstanding credit by FY25. (business-standard.com) Working‑capital lenders are investing in verified digital onboarding, automated document processing and real‑time utilisation tracking to cut turnaround times and monitor cash‑flow stress. (credacc.com) Solifi’s recent Document Intelligence release claims up to a 70% reduction in document verification time, accelerating those checks for secured finance teams. (prnewswire.com) Equipment lenders are shifting structures toward leases and tailored financing to preserve borrower liquidity while managing asset depreciation and tax treatment; JPMorgan notes equipment finance as a lever to optimise working capital. (jpmorgan.com) U.S. tax‑related rule changes that expand interest deductibility have also improved the economics of financed equipment for lenders and borrowers. (mazocapital.com) Automotive finance is under acute inventory pressure: Indian dealers were reported holding about ₹52,000 crore of stock — roughly 52–60 days’ supply — heightening working‑capital draw and dealer distress in 2024. (business-standard.com) U.S. dealership supply normalized back toward ~81 days’ supply in late‑2024, illustrating global dealer‑level working‑capital exposure variability. (haigpartners.com) Floorplan and wholesale lines show rising carry costs: lenders flagged net floor‑plan expense per vehicle up ~39% in Q2 2025 as interest and holding costs climbed, pressuring liquidity and audit/curtailment activity. (harneypartners.com) Providers such as NextGear and region‑specific floorplan specialists continue to push dealer portal integrations and audit tooling to limit aged‑inventory risk. (nextgearcapital.com) Vendor/tech moves mirror the underwriting shift: Access Capital migrated to Solifi’s SaaS ABL platform to consolidate AR ledgers and reporting in 2023, and ALL Capital went live on Solifi ABL to launch a digitally enabled ABL/wholesale business with near‑real‑time data and borrower portals. (sfnet.com) Solifi customer stories show the platform being used to reduce origination friction, automate AR reviews and surface portfolio trends that working‑capital lenders use as triage signals. (solifi.com)
