The framework is part of a working paper published by MISI for the SWIFT Institute, the Belgium-based financial services research organization. SWIFT sponsored the research that MISI carried out for the paper, titled Financing the SME Value Chains.

A lack of collateral and limited access to venture and growth capital are some of the obstacles that SME owners face when seeking finance for their businesses. Cash flow shortages caused by long or delayed payment cycles exacerbate the problem.

High transactions costs, inadequate information about borrowers, and weak governance deter large banks from developing SME lending portfolios.

Many Asian SMEs turn to other sources of finance such as unregistered money lenders that charge high interest rates.

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