7.4. Credit and Financing Options for Businesses

In Bangladesh, businesses have access to various financing options, including equity financing, debt financing, government grants, and digital financial services. Equity financing avenues encompass direct foreign investments through venture capital and private equity funds, capital injections by promoters into private companies, and rights issuances by listed companies to raise equity. Debt financing is available through loans from domestic or international banks, with the Bangladesh Bank regulating external commercial borrowing to ensure financial stability. The government offers incentives such as cash incentives, duty drawbacks, and subsidized financing, particularly for export-oriented industries. Additionally, the rise of digital financial services, including mobile financial service providers and fintech companies, offers innovative solutions like digital lending, payments, and embedded finance, integrating financial services directly into non-financial platforms. These diverse financing options cater to the varying needs of businesses operating in Bangladesh.