SME Finance Definition

SME finance is the funding of modest and medium-sized businesses, and represents a significant function of the general business finance market – where capital for unique variations of firms are delivered, acquired, and costed or even priced. Capital is supplied from the business finance market in the form of bank loans and overdrafts; leasing and also hire-purchase arrangements; or corporate attachment issues; venture investment capital or private fairness; and asset-based finance like factoring and invoice discounting.