Sources Of Finance For Smes

1419 Words Nov 15th, 2014 6 Pages
Introduction
As the world economy has developed rapidly these years, small to medium sized companies are playing important roles in the acceleration of the global economy development especially in those developing countries. An optimistic finance environment is especially needed to the small and medium-sized company at each stage of their life cycle, from creation through operation, development, restructuring, recovery and beyond. (Agrebi, Mohamed,2009) In this paper, the mainly source of finance to SMEs and the financing difficulties which it may face will be described.
The sources of finance for SMEs
As the capital of the company can directly impact the whole operation of the company, a lack of money can bring huge lost to the developing of the organization which often appear in the form of missing great opportunities. The directors and managers of the companies are often worried about the financial problems.
In figure 1 we can see the procedure of a small company to get financial help clearly. It is better for SMEs to have an adequate understanding about the types of financial institutions, the various products and services available, and credit policies and procedures before they take measures to get money. Source from: HOW TO ACCESS TRADE FINANCE http://www.intracen.org/uploadedFiles/intracenorg/Content/Trade_Support_Institutions/Delivering_services_to_exporters/Evaluating_trade_credit_applications/How_to_Access_Trade_Finance.pdf Generally speaking, investment can…

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