We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Financing micro-businesses and the UNCITRAL Model Law on Secured Transactions.
- Authors
Gullifer, Louise; Tiradoy, Ignacio
- Abstract
Access to finance for micro-businesses is a difficult task: lack of adequate information to enable due diligence by lenders, the small size and short term of the loans or the common lack of available collateral are only some of the facts that explain the existence of a financing gap in most jurisdictions all over the world. The legal system of secured financing introduced by UNCITRAL's Model Law on Secured Transactions can help address many of these points. Certain features of lending to microbusinesses, however, require special treatment, both from the general legal and regulatory environment, as well as from the Model Law itself, which is primarily targeted at lending to small- and medium-sized enterprises rather than tiny microbusinesses. This paper purports to identify the most relevant issues that arise in the access to finance in a jurisdiction that has incorporated a Model Law type of system, making tentative recommendations as to how the main problems can be overcome, either by some microbusiness-specific amendments to the Model Law, by the provision of guidance as to the operation of the Model Law in this area, or by the introduction of regulatory and other legal developments to ameliorate the wider problems.
- Subjects
SMALL business; BUSINESS finance; COLLATERAL security
- Publication
Uniform Law Review, 2017, Vol 22, Issue 4, p642
- ISSN
1124-3694
- Publication type
Article
- DOI
10.1093/ulr/unx046