《MPAcc财会专业英语》Chapter24.pdfVIP

Chapter 24 (P509-522) Financing of small and medium-sized enterprises Topic list (P509) • 1 Small and medium-sized enterprises • 2 The problems of financing SMEs • 3 Sources of finance for SMEs • 4 Government aid for SMEs Introduction (P509) small and medium-sized enterprises (SMEs) Study guide (P510) Section 8- Sources of finance I: Small and medium- sized enterprises • Exam guide (p516) 1 Small and medium-sized enterprises (P510) • SMEs are generally: • Unquoted • Owned by a small number of individuals • Not micro-businesses 2 The problems of financing SMEs (P511) • (1) SMEs may not know about the sources of finance available. • (2) Finance may be difficult to obtian because of the risks faced by SMEs. • (a) Tax policy • (b) Interest rate policy • (3) The main handicap that SMEs face in accessing funds is the problem of uncertainty. • (a) SMEs have neither the business history nor larger track record • (b) more public scrutiny • (c) use credit scoring systems to control exposure 2.1 Problems of low asset companies (P512) • Case Study 3 Sources of finance for SMEs (P512) • Potential sources of financing for small and medium-sized companies include the following: • Owner financing • Overdraft financing • Bank loans • Trade credit • Equity finance • Business angel financing • Venture capital • Leasing (see Chapter 30) • Factoring (see Chapter 19) • 3.1 Owner financing(P512) • 3.2 Overdraft financing • (a) Amount • (b) Margin • (c) Purpose • (d) Repayment • (e) Security • (f) Benefits • 3.3 Overdrafts and the operating cycle (P513) 3.4 Overdrafts and loans compared (P513) • 3.4.1 Advantages of an overdraft over a loan • 3.4.2 Advantages of a medium-term loan • (a) know exactly • (b) withdraw • (c) facility letter • 3.5 Trade credit (P514) • 3.6 Equity finance •