E-Finance for SMEs in Developing Countries

Analyzing the environmental constraints in the credit insurance market, this paper presents Gerling Credit Group's strategy to meet the internet challenge. The important features of this strategy are:

• Communicate via an Internet-based system, "SERV@NET";
• Offer on-line security for transactions;
• Provide traditional credit insurance for digital market places through electronic trading platforms on the internet;
• Develop a portfolio of information-, insurance- and financing products;
• Be exclusively for the small and medium enterprise (SME) sector - eCredible is exclusively devoted to helping its customers streamline their credit management process by offering a scalable modular suite of credit management.

The paper presents the following advantages of eCredible for the SME sector:

• Increased sales to new markets (increased trust and reliability of business partners);
• Enhanced speed and efficiency;
• Reduced DSO (days of sales outstanding);
• Provisions for financial institutions - eCredible offers the ability to provide to SMEs at lower cost receivables based funding in a secured manner, without taking on additional risks that would harm the financial institution risk profile.