SME borrowers report tighter loan rules
08/07/2010
Half of all SMEs are paying between eight and 10 per cent for secured finance. According to Fujitsu’s SME market profit model, lenders are making a profit on 80 per cent of the SME loans, compared to 70 per cent in the last survey.
While demand from SMEs for finance is picking up it is still weak and lenders remain cautious about extending credit. Borrowers report lower loan to valuation ratios, stricter collateral requirements, higher interest coverage ratios and requirements for more frequent accounting reports.
Source: Banking Day
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