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SME Access to Finance Issue

US Credit Climate: Small Business Less Optimistic

The latest data from the National Federation of Small Business suggests that there is slightly less enthusiasm about the economy and its future than there was a month or so ago. The last month’s numbers hit a high not seen since 2007 – 94.3.  That was the sixth month in a row for the index to gain but in March ... Read More »

Australian Risk Climate: 400,000 Small Businesses Missing Out on Mainstream Finance

Nearly 400,000 small businesses are missing out on access to mainstream finance largely because credit providers are unable to adequately assess and price small business risk. According to a recent report by Dun & Bradstreet, ‘Giving Small Business Credit – Finding New Opportunities in Australia’s Most Dynamic Credit Market’, of the more than one million unincorporated businesses in Australia, more ... Read More »

SME Access to Credit: Finding new Opportunities in Australia’s most Dynamic Credit Market

D&B Australia has published a whitepaper which examines the challenge of information asymmetries in small business credit.  In particular it: Identifies the unique characteristics of a small business and provides a workable definition; Examines how information asymmetries for small business can be reduced; Reveals an untapped credit market of more than one million small businesses in Australia and provides an ... Read More »

Financial Disclosure or Communication – A Necessity for Small and Midsize Companies

Financial disclosure and regular shareholder communication are requirements for large enterprises.  The customary glossy annual reports and quarterly statements give the impression that such practices are reserved for capital corporations only. Small, and in particular medium-sized companies generally believe that such practices do not apply to them.  To the contrary, small and medium size enterprises should adopt disclosure and communications ... Read More »

SME Access to Finance: Pepperdine, Dun & Bradstreet Credibility Corp. Partner for Research

Pepperdine University’s Private Capital Markets Project and Graziadio School of Business and Management announced a national partnership with Dun & Bradstreet Credibility Corp. to develop research on the national economy and private capital access for small- and medium-sized businesses. The first stage of the 2012 Economic Forecast will be released in the third week of January 2012. The second area ... Read More »

SME Access to Finance in the USA: Small Business Lending Fund Successful but Future Uncertain

The U.S. Treasury reported this week that the Small Business Lending Fund (SBLF) seems to have done its job. Institutions involved with the program significantly increased their lending to small businesses by $3.5 billion over a $35.9 billion baseline, which describes the average lending reported in the four quarters before the program began. Enacted in 2010 as part of the ... Read More »

India Government to Launch Online Business Portal

The government of India will launch an online platform in November this year in order to provide information about Indian micro, small and medium enterprises (MSMEs) with the central aim of attracting foreign business partners. The National Small Industries Corporation (NSIC), which operates under the MSME Ministry, will be responsible for the development of the website. According to media reports, ... Read More »

Alibaba’s survey finds Chinese SMEs struggling

Beijing, 27th July: According to a recent survey carried out by both Peking University and e-commerce company Alibaba Group, small- and medium-sized enterprises (SMEs) are finding it difficult to obtain credit from banks in China. This difficulty is compounded by rising labour and material costs. According to the survey, SMEs generate 65% of China’s GDP and 80% of the country’s ... Read More »

Observations from the BIIA Forum 2011: Eliminating Asymmetries in Information through SME Ratings

Parag Patki, Managing Director of SMERA offered a different approach.  SMERA was initially set up as a rating agency to provide non-regulatory ratings on SMEs.  In the meantime SMERA is registered under the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.   The initial challenges in setting up SMERA were the reluctance of lenders to provide default data, ... Read More »

Observations from the BIIA Forum 2011: Eliminating Information Asymmetries with Information Sharing

To provide further input to the open forum discussion the audience had the benefit to listen to William Lim, Executive Director of the Singapore Credit Bureau presenting two excellent role models, the SME credit bureaus of Malaysia and Singapore:  In essence two progressive nations are way ahead in terms of embracing the recommendations of the IFC.  The objectives of the ... Read More »

Observations from the BIIA Forum 2011: The SME Dilemma – Lack of Access to Finance

The SME Dilemma:  Eliminating Information Asymmetries – A Challenge and Opportunity for the Business Information Industry BIIA had invited Tony Lythgoe, from the IFC (World Bank Group) to provide an overview of the key findings from recent IFC work on the impact of information asymmetries on SME finance in developing countries, particularly the report titled ‘Scaling-Up SME Access to Financial ... Read More »

Nigeria: Deepening Credit Market Through Information Sharing

Disturbed by low level of credit penetration in Nigeria, experts of credit bureau practice met with bankers in Lagos late March on a platform tagged Professionals Leadership Forum.  The meeting, which the conveners, CRC Credit Bureau Limited and Dun & Bradstreet, said would hold regularly as banks are more positioned to lend, was meant to review the level of credit ... Read More »

General Principles for Credit Reporting Unveiled by World Bank

BIIA participated in a taskforce co-chaired by the World Bank and the Bank for International Settlement to develop general principles for credit reporting for the financial services sector. These general principles are intended for policymakers, regulators, financial supervisors, credit reporting data providers, credit reporting service providers, the users of such services, and individuals and businesses whose credit histories and identification ... Read More »

Late Payments: European Parliament sets new rules

The European Parliament adopted by a very large majority (612 votes in favour, 12 against and 21 abstentions), new rules against late payments. The text approved by the Parliament confirmed, as general rule for both the public and the private sector, the 30 days limit to settle invoices for the purchase of goods and services. Some exceptions are foreseen in ... Read More »