Discuss the best funding options for Small and Medium Business Enterprises (SMEs) in Saudi Arabia to keep cost of capital optimum.
justfy answers
* no hand writing or pics
* use at least 250 words
The first important thing to note is that the incubation period for funding process of Small and Medium Enterprises in Saudi Arabia will be in the range of three weeks to at least six months. And when it comes to sources of such funding, the first category is private funding which included friends, relatives (including spouse/ partner), etc. This is the best option as not all SMEs have access to banking facilities, and also by taking funds from personal contacts, it will help in lowering the cost of capital.
One may also ask for funds from business contacts, if any. And sometimes small and medium enterprises can resort to collecting funds through employees giving them low return on their investment and providing them with other benefits and incentives instaed. This will help in keeping the cost of capital low. Some SMEs can also cater to private placement option which includes collecting capital from private investors.
Riyadh Bank in Saudi Arabi also provides long term loans and leasing facilities. One can also resort to funding by banks in case one wants to avail mortgage facilities or support services such as letters of credit, credit references, etc.
Another option of funding for SMEs in Saudi Arabia is Term Lenders, which offer a longer tenure of loans as compared to banks and offer funds upto 60% valuation of the assets that you pledge. Such term lenders are usually instalment companies and specialist companies. They offer amortizations upto 20 years with floating interest rates.
Taking assets on lease is another indirect source of funding for SMEs who are not able to purchange the assets directly. In this case, there is an option to free up some capital if you repurchase the real estate which you sold with a condition to re-purchase it after a few years.
Other sources of funding include suppliers, customers, governmental undertakings, etc. who may also assist you with technical and marketing assistance.
Discuss the best funding options for Small and Medium Business Enterprises (SMEs) in Saudi Arabia to...
Discuss the best funding options for Small and Medium Business Enterprises (SMEs) in Saudi Arabia to keep cost of capital optimum. ( 200 words , at least 170 words ) Thank you.
Discuss the best funding options for Small and Medium Business Enterprises (SMEs) in Saudi Arabia to keep cost of capital optimum.
Discuss the best funding options for Small and Medium Business Enterprises (SMEs) in Saudi Arabia to keep cost of capital optimum.
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