Access to finance for SMEs during the economic recovery is a very relevant issue as we start to move tentatively out of the recession.
The prediction of reduced credit will affect the availability of finance for SMEs. This is a critical issue for the recovery of European economies.
The theme of access to finance was discussed at a recent breakfast meeting jointly organised by ACCA and the City of London on 7 October 2009, at which a panel of speakers presented the points of view of the service providers, the users, the facilitators and the regulator.
The event, entitled Access to Finance: How will SMEs raise finance during the economic recovery?, also featured discussions highlighting the latest statistics from the EU barometer, which indicated that there have been minor improvements in accessing finance.
According to Professor Robin Jarvis, ACCA head of SME affairs, the two influential aspects in examining problems surrounding access to finance are the size of the SME and the type of activity/services they deliver.
The diverse situations within the EU Member States' banking system is critical, especially when coupled with the fact that responsible lending leads banks to focus on viable projects when approving a loan.
Public support is urgently needed to help innovative projects, develop new products and to expand other forms of financing that could carry more risk such as equity and venture capital, as well as the incentives - such as tax reliefs - that should accompany them.
Also, governments should study best practice examples regarding loan guarantee schemes and work towards building a framework of business angel networks, while looking at the impact of the capital requirement and late payment on end-users.
The prediction of reduced credit will affect the availability of finance for SMEs. This is a critical issue for the recovery of European economies.
The theme of access to finance was discussed at a recent breakfast meeting jointly organised by ACCA and the City of London on 7 October 2009, at which a panel of speakers presented the points of view of the service providers, the users, the facilitators and the regulator.
The event, entitled Access to Finance: How will SMEs raise finance during the economic recovery?, also featured discussions highlighting the latest statistics from the EU barometer, which indicated that there have been minor improvements in accessing finance.
According to Professor Robin Jarvis, ACCA head of SME affairs, the two influential aspects in examining problems surrounding access to finance are the size of the SME and the type of activity/services they deliver.
The diverse situations within the EU Member States' banking system is critical, especially when coupled with the fact that responsible lending leads banks to focus on viable projects when approving a loan.
Public support is urgently needed to help innovative projects, develop new products and to expand other forms of financing that could carry more risk such as equity and venture capital, as well as the incentives - such as tax reliefs - that should accompany them.
Also, governments should study best practice examples regarding loan guarantee schemes and work towards building a framework of business angel networks, while looking at the impact of the capital requirement and late payment on end-users.
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