Availability of credit from banks have contracted due to general credit aversion of the bankers to lend to SMEs. There have been persistent plea by the Indian exporters for higher trade financing at an affordable cost. Though the SMEs have a strong demand for term financing in order to meet their capital and technological up-gradation needs, bank credit currently available to them is insufficient. Apart from that they also need finance to explore new markets, diversification and expansion. The banks' perception towards SME sector also needs to be changed and more focused to meet their requirements. Another major problem being faced by the entrepreneurs is about their inability to provide collateral securities against bank loans. The Government has introduced schemes to provide collateral free bank credit depending upon the merits of the enterprise through designated banks.

For modernisation and diversification activities the SMEs need to explore other avenues of financing like venture capital and private equity funds. For entrepreneurs with brilliant business proposal the support of the Angel investors is very much necessary. With the formation of the SME stock exchange, the SMEs will be greatly benefited by raising equity through capital market.

TOPICS TO BE COVERED

• Banks Perspectives towards lending to SME

• Simplified procedures to obtain banking credit

• New products and services from Banks

• Role of Government to streamline SME Finance

• Awareness on Banking Codes and Standards

• Pre and Post shipment credits

• Minimizing credit risk in international trade

• Letter of credit and payment settlement

• NPA avoidance and restructuring procedures

• Importance of credit rating

• Bank credit without collateral security

• Guidelines for effective Financial Management

• Introduction to Venture Capital and Private Equity

• Importance & Advantages of SME Stock Exchange

• Other Investment Opportunities