Virtual CFO for NBFC: Key Responsibilities and Benefits

Virtual CFO for NBFC Key Responsibilities and Benefits

Managing the finances of a company while maintaining proper compliance with the changing regulatory requirements is a challenging task for Non-Banking Financial Corporations or NBFCs.

Hiring a Virtual CFO for NBFC can help solve this problem.

Virtual CFOs come in with their extensive knowledge and network providing specific financial strategies to empower the NBFCs in adapting efficiently to the digital age and staying ahead of the curve. From optimizing the finances to improving risk management practices, Virtual CFOs help boost the growth and profits of NBFCs immensely.

In this blog, we will discuss the top 7 Advantages of Hiring a Virtual CFO for NBFC.

What is NBFC?

Also known as Non-banking Financial institutions, NBFCs are institutions providing bank-like services to their customers but do not have a banking license.

NBFC is registered under the company’s act and according to section 45-1(c) of the RBI, an NBFC is a company that conducts financial institutions’ business and is involved in lending or advance sector, purchase of stocks, debts and other marketable instruments issued by the Indian government.

The NBFCs are supporting financial inclusion by offering low-cost lending at home to the general public and mostly concentrating on peer-to-peer lending. They are increasingly becoming an integral part of India’s financial services infrastructure.

The range of products and services offered by NBFCs includes credit facilities, acquisition of shares insurance or chit business, savings and investment plans, loans and advances, money transfer services etc.

The recent list released by the Reserve Bank of India (RBI) for the NBFCs includes 15 companies like Bajaj Finance, Piramal Capital, LIC Housing Finance, Mahindra Financial Services etc.

Why is a Virtual CFO Needed for NBFC?

A Virtual CFO or a Virtual Chief Financial Officer is a financial professional carrying out accounting duties and building strategies for the businesses in need.

  1. A Virtual CFO for NBFCs serves as the financial assistant and can be considered as the right hand of the CEOs.
  2. They act as strategic partners at NBFC and are needed for the financial management, planning, and evaluation of market trends for the overall growth of NBFC.
  3. They can be hired as per the current needs of the NBFC on a part-time, weekly, or fortnightly basis at a very reasonable price.
  4. A Virtual CFO for NBFC helps make informed financial decisions and reduce their losses and expenditures.
  5. They are needed for building and managing various strategies related to lending and the management of cash flow.
  6. A Virtual CFO for NBFC are needed for product structuring and designing and managing the loan portfolios at NBFC.

Top 7 Advantages of Hiring a Virtual CFO for NBFC

The 7 benefits of the Virtual CFO for NBFC are mentioned below in detail.

1. Managing Risk in Finance and Operations:

Being involved in lending, NBFCs are more 

prone to debt risks due to multiple defaulters from time to time, which results in non-performing assets. They also assist in managing cash flow problems and help in expansion by accurately assessing the risks associated with mergers and acquisitions.

Various risks related to data security, labour quality, corporate enterprise growth or supply chain management, are efficiently handled by a Virtual CFO and the process of implementing regulatory compliances is made smooth.

By developing specific risk management strategies and monitoring risks, a Virtual CFO for NBFC helps in implementing risk mitigation measures.

2. Evaluation of Market Trends and Financial Success:

Services ranging from financial forecasting, financial modelling, monitoring market trends and strategic planning are multiple domains in which a Virtual CFO helps the NBFCs.

Researching and evaluating the industry trends is very crucial to making informed decisions for your company. Virtual CFO for NBFC further use this data to make an extensive growth strategy and business plans to boost the overall profits of the company in the long term.

They further help in efficient financial management by using tools and ML-backed software and systems for managing all the back-office tasks.

3. Expertise and Network:

With their experience in dealing with multiple clients in different domains, Virtual CFOs help establish efficient systems to improve customer relations and the overall experience.

They also bring on board, their vast network of contacts that can assist in expanding the growth of NBFC and establishing authority in the market.

4. Proper planning, management and new product development:

According to the specific needs of NBFC, a Virtual CFO creates a potential plan for their growth while accurately managing all the budgeting procedures. From providing audit support, debt planning, and compliance with various acts to year-end account closure and filings, a Virtual CFO for NBFC supervises, manages and plans all these tasks very effectively.

They also help enhance the effectiveness of NBFCs by establishing new product development processes.

5. Flexibility and scalability:

With their vast experience in managing clients from different domains, they specialise in creating plans for NBFCs to its needs and goals.

They assess the company’s current situation, make plans to adapt to its specific needs and forecast effective strategies to maximise their profits.

They are very flexible in their working styles, adapt easily to the working styles of NBFCs and help in the scalability and expansion of the company.

6. Cost Benefit

In comparison to the hefty charges taken by a traditional CFO, Virtual CFOs charge a nominal fee while offering the same level of expertise and bringing to the table the same skill as that of a traditional CFO.

Another added advantage is that a Virtual CFO for NBFCs can be hired on either a part-time basis, hourly or fortnightly basis as per the company’s needs.

This makes it a more viable option for small businesses and NBFCs to hire a Virtual CFO while cutting costs.

7. Capital Raising:

Using means like equity and debt financing and other funding sources, the Virtual CFOs for NBFCs help in raising capital effectively to provide support for their growth goals and operations. The huge contacts and networks that a Virtual CFO brings on board can also be beneficial in raising capital for NBFCs.


Virtual CFOs for NBFCs play an integral role in providing support and guidance to the NBFCs. From helping in managing finances and managing risks to adhering to regulations effectively, Virtual CFOs assist in improving the financial performance and achieving the goals of the company.

Virtual CFOs use their expertise in finance and adapt to emerging trends to bring in fresh perspectives and ideas for the growth of NBFCs.

Using innovative processes and technologies, they streamline operations and help in the continuous growth and improvement of the NBFCs.

The team at CA Manish Mishra has a proven record of delivering the best CFO-level services to its clients.

Frequently Asked Questions

A Virtual CFO stands for Virtual Chief Financial Officer and does all the tasks handled by a traditional CFO,but on a part time basis from a distance.

They help in financial planning, management and future forecasting of market trends, management of Cash flow and compliance,cost control, payroll management, bookkeeping, obtaining necessary licenses etc.

Expertise and experience working for NBFC, technical skills and knowledge, adaptability,response time,client references, communication and interpersonal skills, confidentiality and data security are some essential skills to focus on while hiring a Virtual CFO at NBFC.

Empower Your NBFC: Hire Our Virtual CFO Today!

Take your NBFC to new heights with our expert Virtual CFO services. Unlock growth opportunities and streamline financial strategies effortlessly.

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