financing small and medium project SMEs Services | Start Your Own Business Now

Nowadays, money is the center of life. With the scarcity of job opportunities, most young people are looking to set up a private project, but they encounter the obstacle of providing the capital for this project, Therefore, most young people tend to deal with one of the methods of financing small and medium project SMEs.

Sources of small project financing provide advantages for beginners in the field of business and those who want to develop their projects. For example, they know that it takes some time to start and run a business to make a profit. So, it does not ask you to pay the finance directly.

Let me give you a tip. The Small and Medium Enterprises SMEs Finance Initiative will provide you with accessible capital. But without making an effort, it will burden you.

Be aware that the big companies were initially small projects, but with persistence, perseverance and effort, they achieved profits that exceed expectations. Perhaps the most outstanding example of this is Haj Mahmoud Al-Arabi, the owner of the El-Araby Group company, who started his life with 40 piasters, bringing his company to billions of pounds. 

Financing small and medium project SME

How do you start your project?

  • Define the project idea.
  • Start your project at the lowest costs to get experience and an idea of the labor market.
  • Apply for financing from a finance agency.
  • Define your target audience.
  • Market your project.
financing small and medium project
تمويل المشروعات الصغيرة والمتوسطة

What does project financing mean?

Project financing means identifying the financial needs required to start and operate a project and determining how to use these funds, considering the project’s risks.

From this definition, it is clear that project financing includes determining the funds and assets required to start the project on the one hand and managing and controlling these funds and assets on the other.

Entities that can finance a small or medium project

  • banks.
  • Governmental entities.
  • Private sector companies.
  • Borrowing.
  • Electronic finance.
  • stock.
  • Investors.
financing small and medium project

Disadvantages of small business loans

  • Complex conditions for financing small projects, which may hinder obtaining the loan.
  • The financing authority inquires security about the applicant for financing. It also looks at all previous loans and may refuse to finance if you are late in repaying earlier loans.
  • Financing agencies require many guarantees to secure the repayment process.
  • Some funding agencies require a commercial registration and tax card, which is unsuitable for all projects.
  • Some financing agencies charge an increasing interest annually. 

Small and Medium Enterprises Finance Initiative

Many banks and private companies have directed their efforts toward financing small projects without interest or at reduced interest compared to other types of funding by the conditions set by the Central Bank of Egypt. The most famous of these initiatives are: 

Alex Bank initiative

The Bank of Alexandria is one of the essential sources of Egyptian financing, as it provides different financing packages according to the nature of the project. The bank provides financing for doctors, lawyers' offices, and funding for industrial and other projects.

Fawry Funding Initiative

Fawry is a private financing company that grants loans to small and micro-enterprises, amounting to EGP 200,000. This company is characterized by the simplicity of dealing and the loan speed, as you can receive it within only two days.

Housing and Development Bank initiative

Housing and Development Bank announced loans amounting to 5 million pounds. The interest rate varies according to the type and size of the project, from 5 to 10%.

تمويل المشروعات الصغيرة والمتوسطة

Social Fund for Development loans 2022

The Social Fund for Development announced the financing of all types of projects, whether small or medium, start-up or existing, with a maximum of 2 million pounds per project.

One of its most important conditions was a full-time dedication to the project, the completion of military service papers, the presentation of a tax card, a commercial register, and a lease or ownership contract documented in the real estate registration of the project site. 

The Social Fund for Development also gives loans to young people without guarantees and provides many facilities to project owners. 

The National Bank of Egypt initiative

The National Bank of Egypt is considered the most accessible bank to deal with to grant financing to small projects because of the simplicity of the conditions it sets for obtaining the loan.

Conditions for financing small projects from the National Bank of Egypt: 
  • Possibility to obtain a loan without a license.
  • Assisting the client in preparing a simple feasibility study, provided that the project capital does not exceed 2 million pounds.
  • The possibility of granting loans to projects that provide intangible goods, such as the educational sector, tourism, and others.
  • As for financing agricultural projects, the Bank stipulates that the project should not be based on the trade of vegetables and fruits but rather on projects that include agricultural manufacturing operations such as dairy products, eggs, frozen fruits and others.
  • As for agricultural lands, the Bank stipulates that the project owns all techniques of raising and feeding poultry and livestock.

Small and Medium Enterprises Financing Services via ECPA

Funding procedures may seem complicated to many young people and entrepreneurs. Therefore, many resorts to accounting offices to save their time and efforts and to find a reliable party to take over the responsibility of managing project financing for them. This is one of our most essential services.

The Egyptian Certified Public Accountants office is one of the largest accounting offices in Egypt and the Middle East. It has a huge team of accountants, auditors, experts and law consultants. It helps you start your own business in the easiest way to achieve the desired profits. We provide many services such as:

  • Preparing studies and planning budgets for various projects.
  • Establishing a company or a small project.
  • Helping you choose the field of work for your project.
  • Conducting analytical studies on the appropriate financing for your project.
  • Finalizing the financing procedures and completing the required documents.
  • Making settlements with the financing authority.
  • Preparing an appropriate accounting system for your project using the latest digital accounting software.
  • Do periodic training for your team.
  • Monitoring and reviewing expenditures following the provisions of the general budget.
  • Immediate recording of all financial transactions.
  • Communicate with the bank or the financing authority to prepare bank settlements.
  • Preparing payroll, incentives and other expenses statements.
  • Registration of the project on the electronic invoice system.
  • Reviewing all invoices and financial books.
  • Preparing financial, administrative, and accounting reports directed to the project manager or funding agency.
  • Managing expected and unexpected cash flows.
  • Carrying out all the tasks of the project accountant and the additional responsibilities that differ according to the nature and size of the project.
  • Continuous technical support throughout the week with various accounting and legal consultations.

ECPA Accountancy Office is the best partner for opening your own business or growing your existing one; we have been partners for hundreds of successful projects. Thanks to God, we have proven that we are worthy of their trust.

We are happy to serve you, do not hesitate to contact us; we will help you obtain financing for small projects as soon as possible and at the lowest cost to start your project immediately