Virtual Session on Role of Financial Advisors in MSME



Greetings from Association of Financial Advisors of India (AFAI)!

Bank lending is the most common source of external finance for many MSMEs and entrepreneurs, which are often heavily reliant on traditional debt to fulfill their start-up, cash flow and investment needs. While it is commonly used by small businesses, however, traditional bank finance poses challenges to MSMEs, in particular to newer, innovative and fast growing companies, with a higher risk-return profile.

Capital gaps also exist for companies undertaking important transitions in their activities, such as ownership and control changes, as well as for MSMEs seeking to de-leverage and improve their capital structures. The long-standing need to strengthen capital structures and to decrease dependence on borrowing has become more urgent, as many firms were obliged to increase leverage in order to survive the recent economic and financial crisis.

Addressing information asymmetries and increasing transparency in the markets are other priorities to boost the development of alternative financing instruments for SMEs. Information infrastructures for credit risk assessment, such as credit bureaux or registries or data warehouses with loan level granularity, can reduce the risk perceived by investors when approaching SME finance and help them identify investment opportunities. Reducing the perceived risk by investors may also help reduce the financing costs which are typically higher for SMEs than for large firms.

The mission of this conference is to highlight the Role of Financial Advisors in MSME, identify strategies and solutions to fast-track project execution, discuss the key issues and potential solutions, and showcase the most noteworthy projects and promising technologies. The conference will also provide a platform to industry players, policymakers, investors, consultants and technology providers to share their experience and exchange ideas.

Programme Agenda

Time: 4pm – 5:30pm
Key Discussion Points:

☑️ Financial Discipline for better Cash Flow management
☑️ Financial Planning and Sustainability of Small Business
☑️ How to improve the financial eligibility & capabilities of MSMEs
☑️ Reworking financial structure and cash projections
☑️ Agility and Adaptability to Opportunities- Key to Survive
☑️ Access to right Funding at right Cost
☑️ The need for performance measurement and evaluations
☑️ Co-lending / partnership with NBFC for growth in credit to MSME
☑️ Remodeling of Business Goals and Targets
☑️ Need & Significance of Professional Advisory services

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