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Syllabus D4. Financing for small and medium sized enterprises

Syllabus D4

Financing for small and medium sized enterprises 4 / 4

a) Outline the requirements for finance of SMEs (purpose, how much, how long) .
b) Describe the nature of the financing problem for SMEs in terms of the funding gap, maturity gap and inadequate security.
c) Discuss the contribution of lack of information in SMEs to help explain the problems of SME financing.
d) Describe and discuss the response of government agencies and financial institutions to the SME financing problem.
e) Describe the main features of venture capital.
f) Describe the key areas of concern to venture capitalists when evaluating an application for funding.
g) Explain how the use of such measures as credit suppliers, hire purchase, factoring and second tier listing can help to ease the financial problems of SMEs.
h) Outline appropriate sources of finance for SMEs.