Updates from OECD


Cutting the Gordian knot in SME financing: the power of information
By Marcus Schuller – A first insight into SME financing: it lacks of standardisation.

SMEs are difficult to analyse due to their heterogeneous character. Small companies have different needs than medium-sized ones. Financing differs strongly between sectors and countries.

Although banks like to talk about servicing clients in advising them on financing, information asymmetry between the bank and an SME representative puts the latter at a disadvantage. By not asking the right questions and not knowing the limits in negotiations, the agreement automatically favours the bank. SME managers and owners need to be supported by independent advice. more> http://tinyurl.com/m3kau4p

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