Research conducted by Linkflow Capital shows that more SMEs continue to see improved access to financing with larger loan quantum secured in 2020
SINGAPORE - MediaOutreach - 10February 2021 - In their annual SME financing researchconducted by Linkflow Capital, more than halfof SMEs experienced improved access to financing in 2020, a significantincrease from 39% in 2019.
According to Linkflow Capital, up to 52% of SMEs wereeligible for financing in 2020 with an average loan quantum of $310,909 securedwithin their platform, a 134% increase from average loan quantum of $132,500 in2019.
"We observed a higher number of SMEs with stronger revenueand credit profile seeking financing amidst the Covid-19 pandemic compared toprevious years. Also, with the various government financing schemes introducedin 2020, this could explain why financing eligibility and average loan amountssecured last year was markedly higher." said Ben Teo, a spokesperson forLinkflow Capital.
Research data and statistics are derived from LinkflowCapital's SME loan comparison portal launched in 2017. For this latest survey,data was generated from over 4281 unique users for the period January toDecember 2020.
Consistent from the data in 2019 and 2018, for SMEs whowere not able to access financing in 2020, the major hurdle remains acombination of low revenue and poor cash flow.
Other interesting data point observed in this year's SMEfinance survey includes a surge in financing applications which peaked duringthe circuit breaker period, and the resulting delay in average applicationprocessing and funds disbursement turnaround time from 22 days in 2019 to over45 days in 2020.
For detailed figures and data on Linkflow Capital's researchsurvey, kindly visit their webpage at https://smeloan.sg/blog/2020-sme-finance-accessibility-survey.
Linkflow Capital expects business lending to remainmeasured this year as government-imposed loan moratoriums starts to wind downfrom December 2020. Within the context of a K-shaped recovery taking shape,lenders might also adopt a more selective approach in when underwriting specificsectors and industries.
About Linkflow Capital Pte Ltd
Founded in 2012, Linkflow Capital is a SMEloan consultancy firm providing business financing advisory to SMEs inSingapore with their extensive network of capital providers.