Thumbnail
Access Restriction
Open

Source OECD iLibrary
Content type Text
Publisher OECD Publishing
Language English
Subject Domain (in DDC) Social sciences ♦ Economics ♦ Financial economics
Subject Keyword Finance and Investment
Abstract SBA principle: Facilitate SME access to finance and develop a legal and business environment supportive to timely payments in commercial transactions This chapter focuses on policies and instruments to facilitate access to finance for SMEs. It analyses sources of external finance and the legal and regulatory framework that supports their development. Policies to support general financial literacy, which affect both the demand for credit by SMEs and supply of finance by financial institutions, are also considered. Bank loans are the main source of external finance for SMEs, yet access to bank credit remains limited in the MED region. Furthermore, alternative sources of finance (leasing, factoring, equity capital) are still marginal and the political and economic instability of recent years have further reduced the availability of external finance for the private sector, particularly in transition countries. Some of the most prominent actions yet to be undertaken in access to finance are strengthen legislation on secured transactions and creditor rights; improving the reliability and access to cadastres and registries of movable assets; strengthening bank competition; fostering the development of alternative financial facilities; and enhancing financial literacy.
Learning Resource Type Chapter
Publisher Date 2014-09-23
Organization OECD
Page Count 16
Starting Page 121
Ending Page 136


Source: OECD iLibrary