Access to Finance
Leveraging our initiatives in several countries, including our data and relationships with thousands of businesses, Building Markets is uniquely positioned to identify bankable small and medium-sized enterprises (SMEs) and assist them in finding financing. In addition, Building Markets seeks to contribute to and accelerate SMEs’ adoption of best business practices in developing countries.
In developing countries, SMEs are often described as the “missing middle,” too large for microfinance institutions, but too small for commercial banks. Thus, given their significant job creation and poverty reduction potential, overcoming SMEs’ access to finance constraints must be a high priority.
Building Markets’ Access to Finance (A2F) model was named a People’s Choice Winner in 2010 by President Obama and Prime Minister Harper as part of the G20 SME Finance Challenge. Through this award-winning program, Building Markets offers selective services, targeting the needs of SMEs, banks and investment funds, ultimately to overcome constraints in SMEs’ access to finance.
Services targeting SMEs include:
- Credit training offerings; intended to promote good business practices and provide clarity to the loan application process.
- Credit advisory; intended to assist qualified, bankable SMEs through the application process with banks and investment funds.
- Invoice Factoring; intended to provide a much needed working capital solution for SMEs that have fulfilled their contracts.
Services target banks and investment funds include:
- Bank training offerings; intended to assist banks’ loan and credit officers better assess the risks and strengths of SMEs.
- Partial credit guarantees and other catalytic products; intended to further assist banks lend to qualified SMEs.
- Fund deal sourcing; intended to connect SMEs to investment funds looking for good investment opportunities.
Building Markets currently offers A2F services in Liberia and Mozambique and is actively seeking to expand its presence into new markets.