Explain what sources of finance are available for small to...

Content Introduction 3 1 Some important financing sources for SMEs 4 1.1 Different stages in raising finance 4 1.2 Venture Capital: a light of hope for the SMEs 5 1.3 Leasing and Factoring: special survival skills 7 2 Difficulties for SMEs in raising finance 8 2.1 Biggest trouble: lack of credit records 8 2.2 Capital constraints 9 2.3 Other barriers 10 3 Conclusion 10 Reference 11 Explain what sources of finance are available for small to medium sized companies and explain why they sometimes face difficulties in raising finance Abstract: This article examines which types of finance are more suitable for the SMEs, also analysing the disadvantages on them when raising finance. Unlike the large companies,†¦show more content†¦Thridly, indirect financing. This kind of financing is not welcome for the SMEs, for most of them are short-term and long-term loan, and the ways of loan are contained mortgage loan, guaranteed loan, unsecured loan and et at. 1.2 Venture Capital: a light of hope for the SMEs Venture capital(VC), which is known as the risk investment, shows significant role in promoting the SMEs in raising finance. VC includes business angel financing, relationship lending and so on. All of them are good choices for SMEs, specifically for the small and medium companies which are just starting up.(Dagogo, 2009) â€Å"Venture capital is the fuel for high potential growth firms, especially in the United States. New venture survival is tenuous at best, but those backed by venture capitalists tend to achieve a higher survival rate than those that are not.† said by Robert(2010), moreover, in his study shows â€Å" survival for venture capitalists backed ventures range from around 65 percent to 85 percent of the venture capitalists’ portfolio.† If SMEs managers can get help like this, they would have more chances to develope. Having a overview on the SMEs, they have nothing but the companies, without large amount of capital or collaterals.VC might be a bette r method ofShow MoreRelatedExplain what sources of finance are available for small to medium sized companies and explain why they sometimes face difficulties in raising finance2345 Words   |  10 Pagesï » ¿Explain what sources of finance are available for small to medium sized companies and explain why they sometimes face difficulties in raising finance 1. 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