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OECD report

SMEs are increasingly turning to alternative sources of financing, while new bank lending is declining in a number of countries, according to a new OECD report.

The report reveals a rise in venture capital investments and private debt to SMEs occurred in most of the countries surveyed, along with rapid growth of peer-to-peer lending, equity crowdfunding and invoice trading.

The use of alternative finance was especially high in China, the UK and US. Leasing, hire-purchase activities, factoring and invoice discounting, which are based on asset value rather than credit standing, also rose for the second consecutive year.

OECD Secretary General, Angel Gurria, said, “Challenges persist in SME access to finance, but this visible growth in financing alternatives is very positive news.

“In any economy, small businesses are essential to innovation, competitiveness and inclusive growth. Providing reliable access to finance to such companies throughout their lives is crucial if they are to prosper and fully contribute to our economies and well-being.”

To view the report please click here.


 

SMEs seek alternative finance
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