Discuss the existing sources & areas of SME Financing
Posted by Ripon Abu Hasnat on Sunday, December 7, 2014 | 0 comments
The main
sources of SME Financing are basically personal funds, family and friends,
banks and NBFIs. Some refinance Schemes from different
organization are also available. These are discussing below:
SME Financing by Banks & NBFI:
An important element of SME finance is not
directly provided by banks through traditional loans but rather by leasing or
factoring companies. Bank loans and overdrafts are the most widespread debt
financing tools for SMEs, but also those alternative sources like leasing and
factoring are of high relevance.
The EEF:
The Government had instituted the Equity
Entrepreneurship Fund (EEF) in early 2002 in an effort
to make funding more widely available for
agro-processing and information technology businesses in the country.
Small Enterprise Fund (SEF):
Small Enterprise Fund (SEF), a scheme to
refinance banks and other financing institutions that lend to the SME sector
create a capacity to specifically channel needed debt-finance.
Disbursements made by financial institutions and leasing companies into
small-enterprises will be refinanced from the proceeds of the SEF.
ADB Fund:
The Small and Medium Enterprise Sector Development Program (SMESDP),
which is financially assisted by The Asian Development Bank, Manila and
implemented by the Ministry of Industries, Govt. of Bangladesh
introduce a fund for SME entrepreneurs by Banks & NBFI.
Other
Refinance Scheme:
1. Bangladesh Bank Fund:
2. EGBMP (IDA) Fund:
3. Japan International
Cooperation Agency (JICA) Fund
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