According to BIS 'SME Business Barometer', about 49 percent of SME owners claim that only the external finance is vital for their business. One of the main reason to seek finance is to secure working capital as per 59 percent of them and also this portion is more than in any previous Barometer.
Among the SME owners who are seeking finance, 46 percent of them looked for bank loans and about 33 percent an overdraft. There is an increase in applications for bank finance in December of 2009. Bank finance is opted by construction and service sectors.
Around 38 percent of them who opted for finance reported a sort of difficulty in trying to get it. About 30 percent of them who opted for finance where not able to gain any. The statistics have not changed from previous Barometers but the percentage having difficulty in getting finance remains to be much higher than the 2007 and 2008 ASBS.
28 percent of those who are with bank overdrafts reported that their bank has put up interest rates in the past 6 months though 3 percent reported that interest rates have decreased. It is also similar to the previous barometers, but the percentage reporting a decrease is less.
Among the SME owners who are seeking finance, 46 percent of them looked for bank loans and about 33 percent an overdraft. There is an increase in applications for bank finance in December of 2009. Bank finance is opted by construction and service sectors.
Around 38 percent of them who opted for finance reported a sort of difficulty in trying to get it. About 30 percent of them who opted for finance where not able to gain any. The statistics have not changed from previous Barometers but the percentage having difficulty in getting finance remains to be much higher than the 2007 and 2008 ASBS.
28 percent of those who are with bank overdrafts reported that their bank has put up interest rates in the past 6 months though 3 percent reported that interest rates have decreased. It is also similar to the previous barometers, but the percentage reporting a decrease is less.
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