SME finance in the wake of the pandemic

The main challenge is the lack of availability of finance. Clean energy companies have been handicapped by disrupted supply chains, dampening overall electricity demand, and prohibitively high financing costs. Disrupted cash flows due to the COVID crisis's impacts have further exacerbated liquidity issues resulting from servicing of existing debt repayments.

Amid the severe funding crunch, crowdlending from international sources has remained a resilient source of alternative debt finance for clean energy companies. Increasingly, firms looking to raise funds for innovative products are using crowdfunding as the way forward to serve the domestic markets they operate in and grow internationally to generate an impact in the clean energy sector.

Helped by intermediaries, SMEs can articulate their financial requirements, prepare for detailed investor due diligence, and successfully raise debt through crowdfunding. With the help of top-notch financial and legal structuring services, SMEs can successfully navigate the challenges presented by the unconventional nature of crowdlending. For there to be a significant impact on the availability of finance for clean energy enterprises, more work is still needed. Three factors can help elevate crowdfunding and alternate finance to a level where it can fill the gap left by conventional lenders in clean energy lending.