Jump to ContentJump to Main Navigation
International FinanceA Survey$
Users without a subscription are not able to see the full content.

H. Kent Baker and Leigh A. Riddick

Print publication date: 2012

Print ISBN-13: 9780199754656

Published to Oxford Scholarship Online: May 2013

DOI: 10.1093/acprof:oso/9780199754656.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 14 April 2021

Alternative Financing Methods

Alternative Financing Methods

(p.547) 26 Alternative Financing Methods
International Finance


Oxford University Press

Small and medium-sized enterprises (SMEs) play a critical role in economic development in developing countries by furnishing needed goods and services to consumers, creating most employment opportunities, and driving innovation. Yet, these enterprises face numerous hurdles when seeking credit and debt options in the form of short- and medium-term financing. This problem is particularly acute in developing economies where SMEs represent a disproportionately small percentage of the overall number of private enterprises. Conversely, in many of these economies micro enterprises and large firms face a far less challenging environment for finance access due to structural legacies in the local banking industry and recent innovations in the area of microfinance. Despite the challenges faced by SMEs, a new breed of financial intermediary has begun to demonstrate successful lending relationships with firms once considered unbankable. Deploying a modified version of an existing lending technology known as "value chain lending," these financial players have introduced a new and effective tool whose use highlights new banking opportunities for both local and international firms in a market segment primed for growth.

Keywords:   value chain finance, social lending, small and medium-sized enterprise banking, economic development

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .