Research conducted by Linkflow Capital shows that more SMEs enjoyed improved access to financing in 2018
SINGAPORE - Media OutReach - July 3rd, 2019 - In the
latest SME financing research conducted by Linkflow Capital, more SMEs in 2018
experienced improved access to financing.
According to Linkflow Capital, up to 34% of
SMEs gained access to financing in 2018, a marked improvement from 2017's
survey data which suggested that only 19% of SMEs were qualified for business
Research data and statistics are derived from
Linkflow Capital's SME loan comparison portal launched in 2017. For this latest
survey, data was generated from over 2771 users for the period January to
"In 2018, our dataset suggests a significant
improvement for SMEs attempting to secure business financing, with up to 34% of
our portal users eligible indicatively for financing. This is almost double
that of our 2017 survey which indicated only a 19% eligibility rate." said Ben
Teo, a spokesperson for Linkflow Capital.
"In our opinion, some of the reasons for this
improvement in financing eligibility could be due to factors such as the
government's continued support to SMEs in financing schemes such as the SME
Working Capital Loan and healthy domestic economic growth in 2018 that exceeded
expectations. More alternative lending options for SMEs such as P2P
crowdfunding platforms introduced in recent years could also lead to an
increase in business lending."
Some of the headline figures that resulted in
the improvement in financing access culled from this survey includes an
improvement in profitability. Data from 2017's survey indicated that 55% of
users were loss-making. For 2018's research findings, only 19% of users
reported financial losses.
For both years' research, a common reason for
financing ineligibility due to smallish revenue and poor cash flow stayed
consistent. 51% of users reported both annual revenue of below S$300,000 and
low 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 are
trying to access financing. In 2018's data, 26% of users are businesses
incorporated for less than a year, compared to 21% in 2017.
For more figures and data on Linkflow Capital's
research for 2018, kindly visit their webpage at https://smeloan.sg/blog/2018-sme-finance-accessibility-survey.
As we cross the halfway mark in 2019, recent
released economic data suggests that the overall macro view of Singapore's trade-reliant
economy does not seem optimistic against the backdrop of the US-China trade
Economists have revised downwards on our
economic growth prospects for 2019 if global trade continues to face headwinds.
This might lead to an adverse impact on overall financing liquidity for SMEs. Businesses
should well pay heed to be watchful and plan ahead for their short to mid-term
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.