The SME Forum

Will Loans Remain the Best Funding Instrument or Are There Better Alternatives?

02 Jun , 10:00–11:30
Russian Small and Medium-Sized Enterprises Forum
Financial battle
Congress Centre, conference hall D4

Team A: SME loans are the best funding instrument, especially when it comes to preferential programmes.

Argument: loans are the simplest and most convenient funding instrument. There are a lot of banks and credit programmes available in the market. Moreover, there is a wide range of different support programmes. Loans are the easiest funding mechanism for entrepreneurs to understand, which is why it is best to start with loans when attracting investment. For the majority of entrepreneurs, loans are the best and simplest solution to avoid excess risks and obligations. What's more, there is an opportunity to acquire preferential loans, which have minimal borrower requirements. Loans are also the easiest option if businesses decide to restructure or take a repayment holiday, if necessary.

Team B: alternative forms of funding are far more effective, convenient, and advantageous than loans.

Argument: any business, even a microbusiness, must consider alternative funding options, because they are more interesting, advantageous, and better than credits. Alternative funding instruments take into consideration the unique needs of their clients, and may therefore offer better conditions. Such forms of financing include leasing, factoring, microfinancing, and crowdfunding. If a small or medium-size business has already tried loans, they can still consider alternative options, including flotation. The Growth Sector programme exists for that purpose. Moreover, the government will reimburse floatation costs, including the expense of getting rated. This option might appeal to a small business that wants to release shares with a paid-in value as low as RUB 200–300 million.

Pavel Samiyev, Editor-in-Chief, Financial Sphere Section of Bankovskoye Obozreniye Magazine

Inna Dadayan, Director, Department for Investment Policy and SME Development, Ministry of Economic Development of the Russian Federation
Aleksandr Isayevich, General Director, Chairman of the Board, Russian Small and Medium Business Corporation
Mikhail Mamuta, Head of Service for Protection of Consumer Rights and Ensuring the Availability of Financial Services, Member of the Board of Directors, Central Bank of the Russian Federation (online)

Konstantin Basmanov, Head of Small and Medium Enterprises Unit, Promsvyazbank
Alexey Voylukov, Vice President, Association of Banks of Russia
Roman Kapinos, Deputy Chairman of the Board, SME Bank
Anton Kuprinov, Executive Director, Moscow Small Business Credit Assistance Fund
Nadiya Cherkasova, Deputy President - Chairman of the Board, Otkritie Bank

Roman Goryunov, Chairman, Russian Trading System Stock Exchange
Maxim Kalinkin, General Director, Gazprombank Leasing
Oxana Kovalenko, Executive Director, Fund for Financial Support of Small and Medium-Sized Businesses of the Krasnodar Territory Microcredit Company
Kirill Kosminsky, Executive Director, Association of Investment Platform Operators
Maria Krasnovskaya, Deputy Chairperson of the Committee for the Support and Development of Small and Medium-Sized Businesses of the Chamber of Commerce and Industry of the Russian Federation
Alexander Pestov, General Director, Otkritie Factoring
Ilya Pokamestov, General Director, FACTORING PRO
Alexey Primachenko, Managing Partner, Global Factoring Network