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MSME financing Market Size, Share, Trends, Growth Outlook

MSME financing Market Size, Share, Trends, Growth Outlook, and Opportunities to 2030- By Type (Term Loans, Line of Credit/ Overdraft Facility, Bill Discounting or Invoice Discounting and Others) and By Application (Inventory Management, Purchasing Plant & Machinery, Invest in Marketing and Others) and Companies Report

The MSME financing Market Size is estimated to register 12.5% growth over the forecast period from 2023 to 2030.

 

 

MSME financing Market Overview

The emergence of fintech firms and digital lending solutions are streamlining the application process, reduced processing times, and improved accessibility to funds for small businesses are driving the market. Schemes offering subsidized credit, collateral-free loans, and favourable tax structures incentivize financial institutions to extend their lending to this sector are leading to market expansion. Investors are increasingly considering the societal and environmental impact of their investments, leading to the growth of sustainable finance options for MSMEs. Additionally, Financial institutions are partnering with fintech firms, technology companies, and other stakeholders to enhance their offerings and reach a wider MSME customer base. Growing awareness and understanding of the economic significance of MSMEs are prompting both public and private financial institutions to dedicate resources and develop specialized products to cater to this market segment.

 

MSME financing Market 2023-2030

 

MSME Financing Market Dynamics

Market Trends- Digital transformation and technological innovation revolutionize MSME financing, enhancing accessibility and efficiency for small businesses.

Fintech solutions, online lending platforms, and digital banking services are streamlining the entire financing process for MSMEs, from loan application to approval and fund disbursement.

Utilizing artificial intelligence, big data analytics, and machine learning algorithms, financial institutions are assessing creditworthiness more accurately, even for businesses lacking extensive credit histories, fostering the market.

Further, the adoption of digital tools are enhancing operational efficiencies, allowing businesses to manage finances, payments, and transactions more effectively, ultimately fostering growth and sustainability within the MSME sector.

 

Market Driver- The MSME financing market is increasingly emphasizing financial inclusion and sustainability as core focal points.

Initiatives facilitating banking penetration, coupled with financial literacy programs, strive to extend the reach of formal financing to previously excluded businesses, fostering economic participation and growth.

An increasing focus on sustainability within MSME financing is gaining momentum, with investors and financial institutions prioritizing investments in businesses that align with environmental, social, and governance (ESG) criteria.

Further, Investors and financial institutions are increasingly directing funds towards businesses committed to ethical, environmentally friendly, and socially responsible practices.

 

Market Opportunity- The MSME financing market is being reshaped by alternative lending models and financial inclusion initiatives.

Alternative lending models, such as peer-to-peer (P2P) lending, crowdfunding, and supply chain financing, are gaining considerable traction in catering to the diverse funding needs of MSMEs beyond traditional bank loans.

Efforts to promote financial access for underserved or unbanked MSMEs are expanding, aiming to bridge gaps in access to formal financial services, propelling the market growth.

Additionally, Models providing accessible avenues for capital infusion, offering flexibility and tailored financial solutions, especially for businesses with limited credit history or collateral are fuelling the demand.

 

Market Share Analysis- Bill Discounting or Invoice Discounting will register the fastest growth

The MSME financing Market is analyzed across Term Loans, Line of Credit/ Overdraft Facility, Bill Discounting or Invoice Discounting and Others. Bill Discounting or Invoice Discounting is poised to register the fastest growth. This financial practice allows MSMEs to unlock the value of their accounts receivable by selling their unpaid invoices to financial institutions or third-party investors at a discounted rate. Essentially, it enables businesses to access immediate funds rather than waiting for customers to settle their invoices, thereby improving cash flow and working capital management. Invoice discounting offers flexibility to MSMEs by providing them with a readily available source of financing without necessitating collateral, making it an attractive option, especially for businesses facing cash flow constraints. his method helps businesses address short-term financial needs or operational expenses without taking on additional debt. Moreover, it allows MSMEs to maintain control over their customer relationships and collections, as the financing is based on the value of the invoices rather than transferring the debt to the financing entity.

 

Market Share Analysis- Purchasing Plant & Machinery held a significant market share in 2023

The MSME financing Market is analyzed across various applications including Inventory Management, Purchasing Plant & Machinery, Invest in Marketing and Others. Of these, Purchasing Plant & Machinery held a significant market share in 2023. Plant and machinery acquisition holds paramount importance for MSMEs across various industries as it directly impacts their operational efficiency, productivity, and competitiveness. Financing for purchasing plant and machinery allows these enterprises to acquire essential equipment necessary for their production processes or service delivery. This funding facilitates upgrades to existing machinery or the acquisition of new, technologically advanced equipment, enabling MSMEs to enhance their production capabilities, improve product quality, and increase overall efficiency. It enables businesses to automate processes, reduce production costs, and meet evolving customer demands. Additionally, financing for plant and machinery assists in optimizing production capacity, meeting growing market demands, and diversifying product offerings.

 

MSME financing Market News

Aditya Birla Capital Launches 'Udyog Plus': An Integrated, All-inclusive Business Hub Tailored for MSMEs.

"UNDP, MAS, along with Partner Organizations, Unveil New Initiative 'Universal Trusted Credentials' to Ease MSME Financing.

 

MSME financing Market Segmentation

By Type

  • Term Loans
  • Line of Credit/ Overdraft Facility
  • Bill Discounting or Invoice Discounting
  • Others

By Application

  • Inventory Management
  • Purchasing Plant & Machinery
  • Invest in Marketing
  • Others

By Region

  • North America (United States, Canada, Mexico)
  • Europe (Germany, France, United Kingdom, Spain, Italy, Others)
  • Asia Pacific (China, India, Japan, South Korea, Australia, Others)
  • Latin America (Brazil, Argentina, Others)
  • Middle East and Africa (Saudi Arabia, UAE, Kuwait, Other Middle East, South Africa, Nigeria, Other Africa)

 

MSME financing Market Companies

  • Capital Float (India)
  • Clix Capital (India)
  • Lendingkart (India)
  • SMEcorner (India)
  • U GRO Capital (India)
  • Collateral-free loans. (India)
  • MSME credit. (India)
  • SMB. (India)
  • FlexiLoans (India)
  • Kinara Capital (India)

 

*List not exhaustive

MSME financing Market Outlook 2023

1 Market Overview

1.1 Introduction to the MSME financing Market

1.2 Scope of the Study

1.3 Research Objective

1.3.1 Key Market Scope and Segments

1.3.2 Players Covered

1.3.3 Years Considered

 

2 Executive Summary

2.1 2023 MSME financing  Industry- Market Statistics

3 Market Dynamics

3.1 Market Drivers

3.2 Market Challenges

3.3 Market Opportunities

3.4 Market Trends

 

4 Market Factor Analysis

4.1 Porter’s Five Forces

4.2 Market Entropy

4.2.1 Global MSME financing  Market Companies with Area Served

4.2.2 Products Offerings Global MSME financing  Market

 

5 COVID-19 Impact Analysis and Outlook Scenarios

5.1.1 Covid-19 Impact Analysis

5.1.2 post-COVID-19 Scenario- Low Growth Case

5.1.3 post-COVID-19 Scenario- Reference Growth Case

5.1.4 post-COVID-19 Scenario- Low Growth Case

 

6 Global MSME financing  Market Trends

6.1 Global MSME financing  Revenue (USD Million) and CAGR (%) by Type (2018-2030)

6.2 Global MSME financing  Revenue (USD Million) and CAGR (%) by Applications (2018-2030)

6.3 Global MSME financing  Revenue (USD Million) and CAGR (%) by regions (2018-2030)

 

7 Global MSME financing  Market Revenue (USD Million) by Type, and Applications (2018-2022)

7.1 Global MSME financing  Revenue (USD Million) by Type (2018-2022)

7.1.1 Global MSME financing  Revenue (USD Million), Market Share (%) by Type (2018-2022)

7.2 Global MSME financing  Revenue (USD Million) by Applications (2018-2022)

7.2.1 Global MSME financing  Revenue (USD Million), Market Share (%) by Applications (2018-2022)

 

8 Global MSME financing  Development Regional Status and Outlook

8.1 Global MSME financing  Revenue (USD Million) By Regions (2018-2022)

8.2 North America MSME financing  Revenue (USD Million) by Type, and Application (2018-2022)

8.2.1 North America MSME financing  Revenue (USD Million) by Country (2018-2022)

8.2.2 North America MSME financing  Revenue (USD Million) by Type (2018-2022)

8.2.3 North America MSME financing  Revenue (USD Million) by Applications (2018-2022)

8.3 Europe MSME financing  Revenue (USD Million), by Type, and Applications (USD Million) (2018-2022)

8.3.1 Europe MSME financing  Revenue (USD Million), by Country (2018-2022)

8.3.2 Europe MSME financing  Revenue (USD Million) by Type (2018-2022)

8.3.3 Europe MSME financing  Revenue (USD Million) by Applications (2018-2022)

8.4 Asia Pacific MSME financing  Revenue (USD Million), and Revenue (USD Million) by Type, and Applications (2018-2022)

8.4.1 Asia Pacific MSME financing  Revenue (USD Million) by Country (2018-2022)

8.4.2 Asia Pacific MSME financing  Revenue (USD Million) by Type (2018-2022)

8.4.3 Asia Pacific MSME financing  Revenue (USD Million) by Applications (2018-2022)

8.5 South America MSME financing  Revenue (USD Million), by Type, and Applications (2018-2022)

8.5.1 South America MSME financing  Revenue (USD Million), by Country (2018-2022)

8.5.2 South America MSME financing  Revenue (USD Million) by Type (2018-2022)

8.5.3 South America MSME financing  Revenue (USD Million) by Applications (2018-2022)

8.6 Middle East and Africa MSME financing  Revenue (USD Million), by Type, Technology, Application, Thickness (2018-2022)

8.6.1 Middle East and Africa MSME financing  Revenue (USD Million) by Country (2018-2022)

8.6.2 Middle East and Africa MSME financing  Revenue (USD Million) by Type (2018-2022)

8.6.3 Middle East and Africa MSME financing  Revenue (USD Million) by Applications (2018-2022)

 

9 Company Profiles

 

10 Global MSME financing  Market Revenue (USD Million), by Type, and Applications (2023-2030)

10.1 Global MSME financing  Revenue (USD Million) and Market Share (%) by Type (2023-2030)

10.1.1 Global MSME financing  Revenue (USD Million), and Market Share (%) by Type (2023-2030)

10.2 Global MSME financing  Revenue (USD Million) and Market Share (%) by Applications (2023-2030)

10.2.1 Global MSME financing  Revenue (USD Million), and Market Share (%) by Applications (2023-2030)

 

11 Global MSME financing  Development Regional Status and Outlook Forecast

11.1 Global MSME financing  Revenue (USD Million) By Regions (2023-2030)

11.2 North America MSME financing  Revenue (USD Million) by Type, and Applications (2023-2030)

11.2.1 North America MSME financing  Revenue (USD) Million by Country (2023-2030)

11.2.2 North America MSME financing  Revenue (USD Million), by Type (2023-2030)

11.2.3 North America MSME financing  Revenue (USD Million), Market Share (%) by Applications (2023-2030)

11.3 Europe MSME financing  Revenue (USD Million), by Type, and Applications (2023-2030)

11.3.1 Europe MSME financing  Revenue (USD Million), by Country (2023-2030)

11.3.2 Europe MSME financing  Revenue (USD Million), by Type (2023-2030)

11.3.3 Europe MSME financing  Revenue (USD Million), by Applications (2023-2030)

11.4 Asia Pacific MSME financing  Revenue (USD Million) by Type, and Applications (2023-2030)

11.4.1 Asia Pacific MSME financing  Revenue (USD Million), by Country (2023-2030)

11.4.2 Asia Pacific MSME financing  Revenue (USD Million), by Type (2023-2030)

11.4.3 Asia Pacific MSME financing  Revenue (USD Million), by Applications (2023-2030)

11.5 South America MSME financing  Revenue (USD Million), by Type, and Applications (2023-2030)

11.5.1 South America MSME financing  Revenue (USD Million), by Country (2023-2030)

11.5.2 South America MSME financing  Revenue (USD Million), by Type (2023-2030)

11.5.3 South America MSME financing  Revenue (USD Million), by Applications (2023-2030)

11.6 Middle East and Africa MSME financing  Revenue (USD Million), by Type, and Applications (2023-2030)

11.6.1 Middle East and Africa MSME financing  Revenue (USD Million), by region (2023-2030)

11.6.2 Middle East and Africa MSME financing  Revenue (USD Million), by Type (2023-2030)

11.6.3 Middle East and Africa MSME financing  Revenue (USD Million), by Applications (2023-2030)

 

12 Methodology and Data Sources

12.1 Methodology/Research Approach

12.1.1 Research Programs/Design

12.1.2 Market Size Estimation

12.1.3 Market Breakdown and Data Triangulation

12.2 Data Sources

12.2.1 Secondary Sources

12.2.2 Primary Sources

12.3 Disclaimer

 

List of Tables

Table 1 Market Segmentation Analysis

Table 2 Global MSME financing  Market Companies with Areas Served

Table 3 Products Offerings Global MSME financing  Market

Table 4 Low Growth Scenario Forecasts

Table 5 Reference Case Growth Scenario

Table 6 High Growth Case Scenario

Table 7 Global MSME financing  Revenue (USD Million) And CAGR (%) By Type (2018-2030)

Table 8 Global MSME financing  Revenue (USD Million) And CAGR (%) By Applications (2018-2030)

Table 9 Global MSME financing  Revenue (USD Million) And CAGR (%) By Regions (2018-2030)

Table 10 Global MSME financing  Revenue (USD Million) By Type (2018-2022)

Table 11 Global MSME financing  Revenue Market Share (%) By Type (2018-2022)

Table 12 Global MSME financing  Revenue (USD Million) By Applications (2018-2022)

Table 13 Global MSME financing  Revenue Market Share (%) By Applications (2018-2022)

Table 14 Global MSME financing  Market Revenue (USD Million) By Regions (2018-2022)

Table 15 Global MSME financing  Market Share (%) By Regions (2018-2022)

Table 16 North America MSME financing  Revenue (USD Million) By Country (2018-2022)

Table 17 North America MSME financing  Revenue (USD Million) By Type (2018-2022)

Table 18 North America MSME financing  Revenue (USD Million) By Applications (2018-2022)

Table 19 Europe MSME financing  Revenue (USD Million) By Country (2018-2022)

Table 20 Europe MSME financing  Revenue (USD Million) By Type (2018-2022)

Table 21 Europe MSME financing  Revenue (USD Million) By Applications (2018-2022)

Table 22 Asia Pacific MSME financing  Revenue (USD Million) By Country (2018-2022)

Table 23 Asia Pacific MSME financing  Revenue (USD Million) By Type (2018-2022)

Table 24 Asia Pacific MSME financing  Revenue (USD Million) By Applications (2018-2022)

Table 25 South America MSME financing  Revenue (USD Million) By Country (2018-2022)

Table 26 South America MSME financing  Revenue (USD Million) By Type (2018-2022)

Table 27 South America MSME financing  Revenue (USD Million) By Applications (2018-2022)

Table 28 Middle East and Africa MSME financing  Revenue (USD Million) By Region (2018-2022)

Table 29 Middle East and Africa MSME financing  Revenue (USD Million) By Type (2018-2022)

Table 30 Middle East and Africa MSME financing  Revenue (USD Million) By Applications (2018-2022)

Table 31 Financial Analysis

Table 32 Global MSME financing  Revenue (USD Million) By Type (2023-2030)

Table 33 Global MSME financing  Revenue Market Share (%) By Type (2023-2030)

Table 34 Global MSME financing  Revenue (USD Million) By Applications (2023-2030)

Table 35 Global MSME financing  Revenue Market Share (%) By Applications (2023-2030)

Table 36 Global MSME financing  Market Revenue (USD Million), And Revenue (USD Million) By Regions (2023-2030)

Table 37 North America MSME financing  Revenue (USD)By Country (2023-2030)

Table 38 North America MSME financing  Revenue (USD Million) By Type (2023-2030)

Table 39 North America MSME financing  Revenue (USD Million) By Applications (2023-2030)

Table 40 Europe MSME financing  Revenue (USD Million) By Country (2023-2030)

Table 41 Europe MSME financing  Revenue (USD Million) By Type (2023-2030)

Table 42 Europe MSME financing  Revenue (USD Million) By Applications (2023-2030)

Table 43 Asia Pacific MSME financing  Revenue (USD Million) By Country (2023-2030)

Table 44 Asia Pacific MSME financing  Revenue (USD Million) By Type (2023-2030)

Table 45 Asia Pacific MSME financing  Revenue (USD Million) By Applications (2023-2030)

Table 46 South America MSME financing  Revenue (USD Million) By Country (2023-2030)

Table 47 South America MSME financing  Revenue (USD Million) By Type (2023-2030)

Table 48 South America MSME financing  Revenue (USD Million) By Applications (2023-2030)

Table 49 Middle East and Africa MSME financing  Revenue (USD Million) By Region (2023-2030)

Table 50 Middle East and Africa MSME financing  Revenue (USD Million) By Region (2023-2030)

Table 51 Middle East and Africa MSME financing  Revenue (USD Million) By Type (2023-2030)

Table 52 Middle East and Africa MSME financing  Revenue (USD Million) By Applications (2023-2030)

Table 53 Research Programs/Design for This Report

Table 54 Key Data Information from Secondary Sources

Table 55 Key Data Information from Primary Sources

 

List of Figures

Figure 1 Market Scope

Figure 2 Porter’s Five Forces

Figure 3 Global MSME financing  Revenue (USD Million) By Type (2018-2022)

Figure 4 Global MSME financing  Revenue Market Share (%) By Type (2022)

Figure 5 Global MSME financing  Revenue (USD Million) By Applications (2018-2022)

Figure 6 Global MSME financing  Revenue Market Share (%) By Applications (2022)

Figure 7 Global MSME financing  Market Revenue (USD Million) By Regions (2018-2022)

Figure 8 Global MSME financing  Market Share (%) By Regions (2022)

Figure 9 North America MSME financing  Revenue (USD Million) By Country (2018-2022)

Figure 10 North America MSME financing  Revenue (USD Million) By Type (2018-2022)

Figure 11 North America MSME financing  Revenue (USD Million) By Applications (2018-2022)

Figure 12 Europe MSME financing  Revenue (USD Million) By Country (2018-2022)

Figure 13 Europe MSME financing  Revenue (USD Million) By Type (2018-2022)

Figure 14 Europe MSME financing  Revenue (USD Million) By Applications (2018-2022)

Figure 15 Asia Pacific MSME financing  Revenue (USD Million) By Country (2018-2022)

Figure 16 Asia Pacific MSME financing  Revenue (USD Million) By Type (2018-2022)

Figure 17 Asia Pacific MSME financing  Revenue (USD Million) By Applications (2018-2022)

Figure 18 South America MSME financing  Revenue (USD Million) By Country (2018-2022)

Figure 19 South America MSME financing  Revenue (USD Million) By Type (2018-2022)

Figure 20 South America MSME financing  Revenue (USD Million) By Applications (2018-2022)

Figure 21 Middle East and Africa MSME financing  Revenue (USD Million) By Region (2018-2022)

Figure 22 Middle East and Africa MSME financing  Revenue (USD Million) By Type (2018-2022)

Figure 23 Middle East and Africa MSME financing  Revenue (USD Million) By Applications (2018-2022)

Figure 24 Global MSME financing  Revenue (USD Million) By Type (2023-2030)

Figure 25 Global MSME financing  Revenue Market Share (%) By Type (2030)

Figure 26 Global MSME financing  Revenue (USD Million) By Applications (2023-2030)

Figure 27 Global MSME financing  Revenue Market Share (%) By Applications (2030)

Figure 28 Global MSME financing  Market Revenue (USD Million) By Regions (2023-2030)

Figure 29 North America MSME financing  Revenue (USD Million) By Country (2023-2030)

Figure 30 North America MSME financing  Revenue (USD Million) By Type (2023-2030)

Figure 31 North America MSME financing  Revenue (USD Million) By Applications (2023-2030)

Figure 32 Europe MSME financing  Revenue (USD Million) By Country (2023-2030)

Figure 33 Europe MSME financing  Revenue (USD Million) By Type (2023-2030)

Figure 34 Europe MSME financing  Revenue (USD Million) By Applications (2023-2030)

Figure 35 Asia Pacific MSME financing  Revenue (USD Million) By Country (2023-2030)

Figure 36 Asia Pacific MSME financing  Revenue (USD Million) By Type (2023-2030)

Figure 37 Asia Pacific MSME financing  Revenue (USD Million) By Applications (2023-2030)

Figure 38 South America MSME financing  Revenue (USD Million) By Country (2023-2030)

Figure 39 South America MSME financing  Revenue (USD Million) By Type (2023-2030)

Figure 40 South America MSME financing  Revenue (USD Million) By Applications (2023-2030)

Figure 41 Middle East and Africa MSME financing  Revenue (USD Million) By Region (2023-2030)

Figure 42 Middle East and Africa MSME financing  Revenue (USD Million) By Region (2023-2030)

Figure 43 Middle East and Africa MSME financing  Revenue (USD Million) By Type (2023-2030)

Figure 44 Middle East and Africa MSME financing  Revenue (USD Million) By Applications (2023-2030)

Figure 45 Bottom-Up and Top-Down Approaches for This Report

Figure 46 Data Triangulation

 

By Type

  • Term Loans
  • Line of Credit/ Overdraft Facility
  • Bill Discounting or Invoice Discounting
  • Others

By Application

  • Inventory Management
  • Purchasing Plant & Machinery
  • Invest in Marketing
  • Others

By Region

  • North America (United States, Canada, Mexico)
  • Europe (Germany, France, United Kingdom, Spain, Italy, Others)
  • Asia Pacific (China, India, Japan, South Korea, Australia, Others)
  • Latin America (Brazil, Argentina, Others)
  • Middle East and Africa (Saudi Arabia, UAE, Kuwait, Other Middle East, South Africa, Nigeria, Other Africa)

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