The SME Commercial Finance Fund (SME Fund) is is funded by USAID, managed and operated by Crimson Capital. The SME Fund provides short-term working capital financing through the use of innovative trade finance products, such as Purchase Order Financing, Pre-Export Financing, Factoring and other asset-based lending products to SME's. The Crimson Capital trough the SME Fund will lend directly to Macedonian companies.

The SME Fund is capitalized with a US $1.5 million loan fund. The purpose of all loans is to provide financing for the purchase of raw materials, packaging, taxes, marketing and other overhead costs for the production and delivery of manufactured goods to both the domestic and export markets. The SME Fund will also finance the following costs associated with the production and manufacture of goods: purchase of finished goods by a trading company, payment for subcontractors and assemblies, payment of project-designated labor, payroll and other taxes, purchase or preparation of packaging and graphics, testing, inspection and shipping costs, and insurance, customs duties and other export-related fees.

Loan terms range from 30 – 179 days maximum, and loan amounts range from US $10,000 – 100,000 and are contingent on the verification of a confirmed customer order. Interest rates are attractive and competitively priced and are comparable to other current donor-funded lending programs in Macedonia. An US $100 non-refundable Application Fee, and Processing and Management Fees are assessed all loans.

The SME Fund will accept the following collateral: Irrevocable Letters of Credit, Bank Guarantees, Export Credit Insurance, Cross-Checks, Blank Bank Drafts, Personal and Corporate Guarantees and Assignment of Working Capital Assets (Accounts Receivable, Inventory and other liquid assets).

The SME Fund lends to companies in the following industry sectors:

• Food processing

• Textiles and apparel

• Leather products

• Metal processing

• Wood Processing and Building Materials

• Light manufacturing and electronics

• Trade and services

The objectives of the SME Fund are to provide trade finance products and services that are currently not available in the Macedonian financial sector, to increase trade, export and revenues of SME's, to generate new employment, to enhance the opportunities for women and minority-owned businesses and to create the local capacity for trade finance lending.

For further information, please contact the SME Fund at the following address SMEFUND@smef.com.mk .

Contact information:

SME Commercial Finance Fund

Naum Naumovski Borce br 76-Vtori sprat

Phone: ++389 (2) 3231-561

Fax:    ++389 (2) 3231-558