Cash flow and timely funding is the lifeline for any business. Without these two, no business no matter how capable can prosper. While there are various institutions and initiatives to encourage SME funding but somehow the ground situation still reflects majority of cash-starved SME companies.
Market regulator SEBI has allowed start-ups and small and medium enterprises (SMEs) to get listed on bourses without making an initial public offering (IPO).
There are new rules being laid down for even angel investment.
Crowd funding is another new global avenue for SME funding and is gathering unbelievable pace & popularity.
Majority of the fund raising for SME companies takes place through debt. Banks are required to assess SME’s assets and collateral. However on the ground, Business assessment usually takes a backseat. Loans are largely disbursed based on collateral strength, not business strength.
We work with our clients to overcome these challenges and find the best mix of fund raising including Debt & Equity.
