Publications

New Approaches to SME and Entrepreneurship Financing

Broadening the Range of Instruments

Published on October 28, 2015

book

Bank lending is the most common source of external finance for many SMEs and entrepreneurs, yet has proven challenging to newer, innovative and fast growing companies, as well as to those undertaking important transitions in their activities or seeking to de-leverage and improve their capital structures.

This report maps a broad range of external financing techniques to address diverse needs in varying circumstances, including asset-based finance, alternative debt, hybrid instruments, and equity instruments. It further highlights key enabling factors for their development, discusses major market trends and obstacles to SME uptake, and suggests some key areas of policy action to overcome challenges to market development.

TABLE OF CONTENTS

Foreword and AcknowledgementsAcknowledgements
Executive summary
The challenges and benefits of alternative finance for SMEs
Traditional debt finance and alternative financing instruments for SMEs
Asset-based finance for SMEs
Alternative debt as a source of finance for SMEs
Crowdfunding for SMEs
Hybrid finance instruments for SMEs
Equity finance for SMEs
Glossary of key terms
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