Market Gaps on Access to Finance - Bank of Valletta

Malta Business Bureau – <strong>Market</strong> gaps in access to finance
April 2013
Reducing grant administrative process: A number of respondents mentioned the need to
decrease the administrative burden, reducing time lags and removing complexity from the
process and application for national and EU funds. Many SMEs commented that, while the end
result is beneficial for their business, applying for funding results in the utilisation of significant
time and resources, which are already limited. In addition, respondents also commented about
the waiting time needed for approval, and to subsequently also receive the finances/
reimbursements. A suggested solution for these problems mentioned by some respondents was
for better guidance to be provided, for instance through more information sessions.
Type of schemes: Interviewees stated that the Microinvest scheme is a very positive initiative.
However, global funding for this scheme should be increased so that further investment can be
made. On the other hand, some firms commented that the Micro Guarantee scheme should
feature the banks’ input at an earlier stage to reduce the possibility of rejection at a later stage.
Medium-sized enterprises and firms in the development growth stage commented on the lack of
specific allocation of funds targeted towards them. Some respondents in this category need
these funds for refurbishment, further company growth, for health and safety infrastructure, to
recruit the appropriate expertise in-house, to increase investment in R&D and product
development, for marketing, export and internationalisation initiatives. A few SMEs planning to
expand internationally stated that they require assistance to appoint of representatives in other
countries. Another respondent suggested the development of schemes specifically designed for
Gozitan SMEs. A couple of SMEs planning to expand their business online stressed the need for
support in line with such plans.
Business Ombudsman: One particular respondent suggested the introduction of a Business
Ombudsman - this official would have a role similar to a Tribunal and would assist firms in
litigation when two parties cannot agree on certain issues.
SME network: One particular comment related to the need for SMEs to form a network to
flourish. Because of the economic / competitive environment in Malta, it is difficult to establish
such a network.
Grants or tax rebates: a few respondents pointed towards more grant-based measures rather
than tax rebates, and that any tax rebates should be based on each company’s annual turnover.
Other suggestions: one respondent was particularly interested in more factoring products, and
more soft loans to be guaranteed by third parties.
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