Alternative Financing Instruments for SMEs and Entrepreneurs The Case of Mezzanine Finance

OECD governments have long assigned a high priority to improving conditions for access to finance for new, innovative and fast-growing SMEs and established firms pursuing expansion. This report analyses the potential and challenges of mezzanine finance for addressing diverse financing needs of SMEs...

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Bibliographic Details
Main Authors Lucia Cusmano, John Thompson
Format Paper
LanguageEnglish
Published OECD Publishing 08.02.2013
SeriesOECD SME and Entrepreneurship Papers
Subjects
Financial Crisis
Growth Finance
Mezzanine Finance
Public Programmes
SME Finance
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Summary:OECD governments have long assigned a high priority to improving conditions for access to finance for new, innovative and fast-growing SMEs and established firms pursuing expansion. This report analyses the potential and challenges of mezzanine finance for addressing diverse financing needs of SMEs and entrepreneurs, highlighting the advantages and costs in relation to other financing techniques. It is the first in a broader series of studies to map and analyse the full range of financing instruments for SMEs alternative to traditional bank credit. It describes the types of SMEs – or stages in their life cycle – for which mezzanine finance is best suited and the ways in which it is used to finance SMEs, comments on the evolution of mezzanine finance in the wake of the financial crisis, and analyses policy approaches to support its broader use.
ISSN:2616-4353
DOI:10.1787/3709429e-en