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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Financing needs of SMEs
Hi tutor,
What are the possible financing needs of SMEs? I can only think of ‘long term vs short term (purpose of funds)’, ‘seasonal business vs cyclical business (not sure if this is correct)’. Are there more to it?
First, make sure the question does say ‘needs’ and not ‘sources’ (because there is a big difference).
So far as needs are concerned, it is long term and short term but you need to say more (the need to finance their working capital, and the need to finance long-term expansion).
(Seasonality etc., could be a factor but is less relevant and would be something to add to any discussion about the working capital)
OK, thanks for the help again 🙂
You are welcome 🙂
