Research conducted by Linkflow Capital shows that more SMEs enjoyed improved access to financing in 2018

SINGAPORE - Media OutReach - July 3rd, 2019 - In thelatest SME financing research conducted by Linkflow Capital, more SMEs in 2018experienced improved access to financing.

According to Linkflow Capital, up to 34% ofSMEs gained access to financing in 2018, a marked improvement from 2017'ssurvey data which suggested that only 19% of SMEs were qualified for businessfinancing.

Research data and statistics are derived fromLinkflow Capital's SME loan comparison portal launched in 2017. For this latestsurvey, data was generated from over 2771 users for the period January toDecember 2018.

"In 2018, our dataset suggests a significantimprovement for SMEs attempting to secure business financing, with up to 34% ofour portal users eligible indicatively for financing. This is almost doublethat of our 2017 survey which indicated only a 19% eligibility rate." said BenTeo, a spokesperson for Linkflow Capital.

"In our opinion, some of the reasons for thisimprovement in financing eligibility could be due to factors such as thegovernment's continued support to SMEs in financing schemes such as the SMEWorking Capital Loan and healthy domestic economic growth in 2018 that exceededexpectations. More alternative lending options for SMEs such as P2Pcrowdfunding platforms introduced in recent years could also lead to anincrease in business lending."

Some of the headline figures that resulted inthe improvement in financing access culled from this survey includes animprovement in profitability. Data from 2017's survey indicated that 55% ofusers were loss-making. For 2018's research findings, only 19% of usersreported financial losses.

For both years' research, a common reason forfinancing ineligibility due to smallish revenue and poor cash flow stayedconsistent. 51% of users reported both annual revenue of below S$300,000 andlow operating cash flow. This does not differ much from 2017's figures with 52%of users who declared the same.

It is also noted that more new startups aretrying to access financing. In 2018's data, 26% of users are businessesincorporated for less than a year, compared to 21% in 2017.

For more figures and data on Linkflow Capital'sresearch for 2018, kindly visit their webpage at https://smeloan.sg/blog/2018-sme-finance-accessibility-survey.

As we cross the halfway mark in 2019, recentreleased economic data suggests that the overall macro view of Singapore's trade-relianteconomy does not seem optimistic against the backdrop of the US-China tradewar.

Economists have revised downwards on oureconomic growth prospects for 2019 if global trade continues to face headwinds.This might lead to an adverse impact on overall financing liquidity for SMEs. Businessesshould well pay heed to be watchful and plan ahead for their short to mid-termfinancing needs.

About Linkflow Capital Pte Ltd

Founded in 2012, Linkflow Capital is a business financing consultancy firm providing financing solutions advisory to SMEs in Singapore with an extensive network of capital providers.

Website: https://smeloan.sg

Facebook: https://www.facebook.com/LinkflowCapital/

Twitter: https://twitter.com/LinkflowCapital

LinkedIn: https://sg.linkedin.com/company/linkflow-capital-pte-ltd