SME entrepreneurs to receive collateral free loans against work orders

Entrepreneurs of Small and Medium Enterprises (SME) would be able to enjoy collateral-free loans against their work orders.

The SME Foundation and Think Big Solutions (TREDEX) alongside corporate, bank and financial institutions would work to motivate the entrepreneurs of this sector on this issue, reports BSS.

This was informed at a match-making and view-exchange meeting among the corporate institutions, financiers and suppliers on ‘factoring finance’ held at the SME Foundation Conference Room in Dhaka on Wednesday. SME Foundation and Think Big Solutions jointly organised the event.

Presided over by managing director of SME Foundation Dr Md Mofizur Rahman, Bangladesh Agro Processors Association (BAPA) administrator Zinnat Rehana, Think Big Solutions (TREDEX Online) managing director Dr M Masrur Reaz also spoke on the occasion.

SME Foundation general manager Nazim Hasan Sattar gave the address of welcome.

The speakers at the meeting said that the SME is an important sector in the country considering poverty alleviation and employment generation.

They said although various types of traditional loan support through the banking system is going on to further improve the SME sector, but the loan disbursement process is still not easy as per the requirements of the entrepreneurs.

Besides, the entrepreneurs also face difficulty with the working capital.

Under the circumstances, short-term or collateral free loan facilities like ‘factoring finance’ would play an important role especially in the industrial sector.