SME finance is the funding of small and medium sized enterprises, and represents a major function of the general business finance market ? in which capital for different types of firms are supplied, acquired, and costed or priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; and asset-based finance such as factoring and invoice discounting.
Facilities Offered :
- Cash Credit / Overdraft for meeting working capital finance requirement.
- Export Credit to provide Pre-Shipment & Post Shipment finance . Letter of Credit to facilitate trade.
- Bank Guarantees for meeting performance and financial obligations.
- Term Loan for purchase of commercial assets & business expansion needs
Small and medium enterprises (SMEs) are critical for the economic and social development of emerging markets. They play a major role in creating jobs and generating income for low income people; they foster economic growth, social stability, and contribute to the development of a dynamic private sector. As such, access to financial services is vital in developing a vibrant SME sector in any economy. In many emerging markets, however, access to financial services for SMEs remains severely constrained.
Over the past decade, Pluto Finance has played a critical role in helping small and medium enterprises worldwide gain greater access to financing.Pluto Finance works to increase access of SMEs to financial services in developing countries by providing funding for equity, loans, and mezzanine finance to financial intermediaries focusing on SME financing, and by building capacity of financial intermediaries and raising awareness on best SME Banking practices. Pluto Finance uses both investments and technical assistance to support financial intermediaries outreach to the SME sector more effectively and efficiently. Investments made by Pluto Finance in financial intermediaries focusing on SME lending have included equity investments, loans, revolving credit lines, and risk mitigation facilities. On the advisory side, Pluto Finance supports enhance banks SME operations in areas such as strategy, market segmentation, product development, risk management and IT/ MIS. facilities.