Rising borrowing costs and difficulty in accessing finance has led India-based Small and Medium-sized Enterprises (SMEs) to look at alternate options of raising funds to fuel their growth, a global survey report said on Thursday.
According to American Express Global SME Pulse 2018 report, SMEs in India are finding it hard to access funds due to high borrowing cost and cumbersome process.
The report showed that 42 per cent of SMEs said that getting access to finance to grow the business is difficult, compared to just a third (33 per cent) in the global average.
"Rising borrowing costs and access to finance is making SMEs to look at alternate options of raising funds to fuel their ambitious growth," said Saru Kaushal, Vice President and General Manager, Global Commercial Services, American Express Banking Corp., India.
"Our research shows that just 46 per cent of Indian SMEs say that they are satisfied with the current financing options available to them, highlighting the time-consuming application process, high interest rates and hidden fees as the top 'pain points'."
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As per the survey, the Indian SMEs foresee high revenue growth over the next three years of 7 per cent a year, along with a 6 per cent annual growth in profits.
--IANS
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