The changing business environment forced seasoned SMEs owners to address difficulties and challenges in gaining access to credit for sustainability and growth. To overcome possible credit constraints, SME leaders embraced an entrepreneurial spirit in adapting to change. The participants of this study provided a unique insight into the acquisition of credit in a changing environment. From the results of the study, We provide recommendations to SME owners, lenders, bank regulators, and policymakers with steps
to useful action.
Successful SME owners followed a deliberate capital strategy with bank credit and alternative sources of credit. We recommend that strategies contain the enterprise’s target capital mix with retained earnings, short-term, and long-term debt. The strategy
should include sources of both short-term and long-term debt with optimum debt levels
from each particular source.
Further, SME leaders should itemize in the capital strategy the levels and purpose of secured and unsecured liquidity that is available from each source. The successful SME owners do not maximize their borrowing capacity but making informed choices to maximize stakeholders’ return.
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