SINGAPORE – Media OutReach Newswire – 10 July 2024 – Linkflow Capital’s annual SME financing research shows a significant tightening of credit conditions for Singapore SMEs in 2023, with average loan quantum dropping 42% to $130,000 from $224,000 in 2021.
The study, based on data from 2,466 unique users of Linkflow Capital’s SME loan comparison portal, reveals that average business loan interest rates spiked to 8.16% in 2023, the highest in a decade and more than triple from the lowest rate of 2.50% recorded in 2020 during the pandemic.
“We are witnessing a marked shift in the SME financing environment, with the sharp rise in borrowing costs and decrease in loan quantum reflecting the challenging financing landscape SMEs faced in 2023,” said Benjamin Teo, spokesperson for Linkflow Capital. “This trend is driven by the unwinding of pandemic-era support measures and the broader high interest rate environment.”
Key findings from the 2023 survey include:
Looking ahead, Linkflow Capital expects interest rates to remain elevated throughout 2024, with a gradual decline potentially from mid-2025. The firm also anticipates the new digital banks to continue increasing their market share in SME lending, though unlikely to make a major dent to incumbent local banks’ loan books.
For detailed figures and data on Linkflow Capital’s research survey, visit https://smeloan.sg/blog/2023-sme-finance-accessibility-survey.
Hashtag: #LinkflowCapital
The issuer is solely responsible for the content of this announcement.
Founded in 2012, Linkflow Capital is a SME loan consultancy firm providing business loan financing advisory to SMEs in Singapore with their extensive network of capital providers.
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