TRADITIONAL VS MODERN FINANCING TECHNIQUES FOR SMES - A GLOBAL PERSPECTIVE

Laura Vasilescu
Additional contact information
Laura Vasilescu: University of Craiova Faculty of Economics and Business Administration

Annals of University of Craiova - Economic Sciences Series, 2018, vol. 1, issue 46, 90-96

Abstract: In all stages of life cycle for the Small and Medium Enterprises (SMEs) - creation, survival and growth - it is necessary the access to financing sources. Even the bank financing almost recovered after the international financial crisis, the SMES still have to face structural challenges and market failures, information asymmetries, high transaction costs, lack of financial skills and training of small business owners. Beside the traditional forms of financing (credit loans, overdrafts, credit lines) there is a need of new and modern financing tools for SMEs in order to cover a wide range of financing needs, to increase the SMEs flexibility and adaptation to challenging situation on financial markets. Therefore, the alternative financing instruments - asset-based finance, alternative debt, equity instruments and hybrid instruments - could offer new opportunities for the SME financing needs. In this paper are presented the main characteristics of the alternative financing instrument in comparision with the traditional financing techniques, the main barriers faced by small and medium firms in accesing the financing sources and the recend measures adopted by the governments to improve the access to finance for SMEs.

Keywords: traditional financing; alternative financing; factors; trends (search for similar items in EconPapers)
JEL-codes: G32 L21 M21 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://feaa.ucv.ro/annals/v1_2018/010.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:1:y:2018:i:46:p:90-96

Access Statistics for this article

Annals of University of Craiova - Economic Sciences Series is currently edited by Sorinel Domnisoru

More articles in Annals of University of Craiova - Economic Sciences Series from University of Craiova, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Anca Bandoi ( this e-mail address is bad, please contact ).