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SMALL BUSINESS FINANCING

Problem

Many small businesses in Latin America and the Caribbean are unable to grow and develop their full potential. A critical bottleneck is lack of access to financing, which particularly affects small businesses that are too large for microfinance and too small for bank lending - the “missing middle”. Nearly 65% of small businesses in the region have restricted access to loans or lines of credit, representing a financing gap in the range of USD 80 to 90 billion.

Objective:

The MIF aims to expand access to financial services for small businesses.

MIF Solutions:

  • Encourage commercial banks to serve small businesses by implementing downscaling models
  • Encourage microfinance institutions to serve small businesses by implementing upscaling models.
  • Encourage financial institutions to create specific and innovative products for small businesses.

Results and Impact:

  • More financial institutions expanding or developing new products for small businesses;
  • More small businesses in the region accessing financing;
  • More financing being directed to small businesses;
  • Through a demonstration effect, other institutions are encouraged to expand services to small business;
  • Impact of small business finance in areas such as business performance, growth and employment is measured and evaluated;
  • Knowledge products addressing small business financing issues are developed and disseminated.

 

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7th Regional Survey

New edition of MIF survey on banks and SMEs indicates strong confidence in the SME segment, greater investments and long-term loans.

 Download the 2014 survey
 Download the 2013 survey


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Supporting growth in women’s businesses: women entrepreneurshipBanking provides incentives for Latin American and Caribbean financial intermediaries to launch innovative and inclusive lending models for women-led micro, small and medium enterprises (MSMEs). Through a unique combination of loans, guarantees and technical assistance, banks and other financial intermediaries have the tools to tailor their financial products and services to better fit the needs of women-led MSMEs.

Factsheet
Press release

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FACTORING IN NICARAGUA

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