Existing Sources of SME Financing:
The main
sources of SME Financing are basically personal funds, family and friends,
banks and NBFIs. Some refinance Schemes from different organization are also
available. These are discussing below:
SME Financing by Banks & NBFI: An important element of SME finance is not directly provided by banks
through traditional loans but rather by leasing or factoring companies. Bank
loans and overdrafts are the most widespread debt financing tools for SMEs, but
also those alternative sources like leasing and factoring are of high
relevance.
The EEF: The Government had instituted the Equity Entrepreneurship Fund (EEF)
in early 2002 in an effort to make funding more widely available for
agro-processing and information technology businesses in the country.
Small Enterprise Fund (SEF): Small Enterprise Fund (SEF), a scheme to refinance banks and other
financing institutions that lend to the SME sector create a capacity to
specifically channel needed debt-finance. Disbursements made by financial
institutions and leasing companies into small-enterprises will be refinanced
from the proceeds of the SEF.
ADB Fund: The Small and Medium Enterprise Sector Development Program (SMESDP),
which is financially assisted by The Asian Development Bank, Manila and
implemented by the Ministry of Industries, Govt. of Bangladesh introduce a fund
for SME entrepreneurs by Banks & NBFI.
Other Refinance Scheme:
1. Bangladesh Bank Fund:
2. EGBMP (IDA) Fund:
3. Japan International
Cooperation Agency (JICA) Fund
The areas of SME Financing in Bangladesh:
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· Agro Process, agro-based and agro supportive industries.
· Handicrafts & other Cottage industries
· Computer software and ICT
· Plastic & Other Synthetics
· Poultry & cattle
· Jute goods (with renewed vigor)
· Electronics and Electrical appliance
· Leather and leather goods
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· Pottery
· Light engineering
· Textile, RMG, Knitwear etc.
· Educational Services
· Health Care & Diagnostics Centers
· Pharmaceuticals/Cosmetics/Toiletries
· Event Management
· Internet Service Providers
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