Financial facilities for SMEs to export
It is particularly important for SMEs to have financial facilities for exports, given
that bank-dominated financial systems usually constrain available financing for new
ventures by small firms. Policy initiatives can therefore play an important role in
providing access to financing for internationalization either directly (e.g., export finance
programs) or by reducing the perceived risks of commercial lenders and investors. In
this context, familiarizing SME managers with different forms of export-related
financing is particularly important (e.g., letters of credit, factoring, leasing, trade
insurance).