By definition, an SME is considered a small and midsize enterprise. Generally, these enterprises have a range of between 50 – and 250 employees though their general turnover might vary from one enterprise to another. The importance of these enterprises is that they spur economic growth and most importantly offer employment to the local population.
SMEs can be categorized into three categories which are:
1. Micro-Enterprises
These are companies that have up to 10 employees. It is usually a small team and is mostly run by one person. Ideally, these enterprises are involved in a niche market. These enterprises are crucial to developing economies and majorly rely on liquidity to keep them operational.
2. Small Enterprises
These are companies with between 10 and 50 employees. They have a broad customer base and are quite popular around the world. They are crucial in delivering key services bridging the societal class gap by improving the quality of life for business owners, their families, and employees.
3. Medium-Sized Enterprises
With an average of between 50 to 250 employees, medium-sized enterprises are more complex and tend to have multiple locations or business units around the world. They are more established and tend to have complex business processes in place to maintain their operations.
Trade finance loans are key in facilitating SMEs to conduct international trade. We can offer cash advances to companies around Juba, South Sudan to create an enabling environment for the businesses to prosper.
So why is trade financing important?
For an SME, trade financing allows the enterprise to mitigate risks that are part and parcel of international trading. With international trading being at the forefront of driving economies, enabling SMEs to access larger markets on a global scale with minimal risk provides the right environment for businesses to grow.
As Smart Capital, we are keen on helping SMEs in all categories to succeed. As part of our endeavor to see businesses succeed, we offer financial instruments that are easily accessible. One of the ways we do this is by offering trade finance loans.
