Challenges Faced by SMEs: the Sidian Bank Solution

The SME sector is very essential in the development of the economy of any given country especially the developing nations. In Kenya, the SME sector caters for almost 80 percent of employment opportunities. Despite this important role that the sector plays in making sure that the economy of the country is stable, the sector is faced with numerous challenges that have hampered its effective operations.

One of the major challenges facing the SME sector is the finances. Most SMEs in this country have failed to take off or have died off at the initiation as a result of lack or inadequate funds. To set any form of business, however small it may be, it needs money. Most of these SMEs are young people who totally lack the much needed capital to set up a business.

Most financial institutions are not ready to bail out the SMEs on the ground that they lack tangible collaterals that the institutions can hold on as the loan awaits to be paid. This has often frustrated many SMEs who have ended up giving up and their productive ideas dying a natural death.

Sidian Bank has the interests of the SMEs deep to its core values of foundations. The bank, whose motto is Own Tomorrow has products that are directly engineered towards making sure that the SME sector remains vibrant and productive.

The bank has SME Corporate Loan which is best suited to pull any SME out of any financial hurdle and project it towards the land of development and profit making. SME Corporate Loan is a business loan facilities that is meant for entrepreneurs for development projects.

The loan comes with such special features as:

• Loans available from Ksh 10,000,000 to Ksh 300,000,000

• Competitive interest rates

• Repayment period of up to 8 years

• Appropriate collateral

• Appropriate moratorium period is provided

Sidian Bank is a bank built and molded towards bettering and enhancing the lives of entrepreneurs, for the entrepreneurs and by the entrepreneurs.

Article by Juma Fred.