The main sources of SME Financing are basically personal funds, family and friends, banks and NBFIs. Some refinance Schemes from different organization are also available. These are discussing below:
SME Financing by Banks & NBFI:
An important element of SME finance is not directly provided by banks through traditional loans but rather by leasing or factoring companies. Bank loans and overdrafts are the most widespread debt financing tools for SMEs, but also those alternative sources like leasing and factoring are of high relevance.
The EEF:
The Government had instituted the Equity Entrepreneurship Fund (EEF) in early 2002 in an effort to make funding more widely available for agro-processing and information technology businesses in the country.
Small Enterprise Fund (SEF):
Small Enterprise Fund (SEF), a scheme to refinance banks and other financing institutions that lend to the SME sector create a capacity to specifically channel needed debt-finance. Disbursements made by financial institutions and leasing companies into small-enterprises will be refinanced from the proceeds of the SEF.
ADB Fund:
The Small and Medium Enterprise Sector Development Program (SMESDP), which is financially assisted by The Asian Development Bank, Manila and implemented by the Ministry of Industries, Govt. of Bangladeshintroduce a fund for SME entrepreneurs by Banks & NBFI.
Other Refinance Scheme:
1. Bangladesh Bank Fund:
2. EGBMP (IDA) Fund:
3. Japan International Cooperation Agency (JICA) Fund
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