SMEs Financing: the Extent of Need and the Responses of Different Credit Structures

Abstract. Small and medium enterprises (SMEs) have a key role in developing national economies, but are often limited by lack of development support in financing business for reasons of information asymmetry, high risks, lack of collateral, unfavorable regulatory environment. The statistics show managers given constant importance of SMEs financing opportunities, bank credit pre-eminence over other forms of financing, the lack of viable alternatives for start-up and innovative companies, etc. Market concentration, alternative between transactional or relational lending, various types of banks; state owned, private owned, foreign, large or small, are analyzed to identify the availability for SME financing. Finally, it is recognized the importance of a diversified banking markets both in terms of supply, lending technologies, but also as bank institutions itself.

Key words: SME; financing; transactions lending; relationship lending; banks.

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