Linkflow Capital: 52% of Singapore SMEs Were Able to Access Financing in 2020

Research conducted by Linkflow Capital shows that more SMEs continue to see improved access to financing with larger loan quantum secured in 2020

SINGAPORE – Media
Outreach – 10
February 2021 – In their annual SME financing research
conducted by Linkflow Capital, more than half
of SMEs experienced improved access to financing in 2020, a significant
increase from 39% in 2019.

According to Linkflow Capital, up to 52% of SMEs were
eligible for financing in 2020 with an average loan quantum of $310,909 secured
within their platform, a 134% increase from average loan quantum of $132,500 in
2019.

“We observed a higher number of SMEs with stronger revenue
and credit profile seeking financing amidst the Covid-19 pandemic compared to
previous years. Also, with the various government financing schemes introduced
in 2020, this could explain why financing eligibility and average loan amounts
secured last year was markedly higher.” said Ben Teo, a spokesperson for
Linkflow Capital.

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 4281 unique users for the period January to
December 2020.

Consistent from the data in 2019 and 2018, for SMEs who
were not able to access financing in 2020, the major hurdle remains a
combination of low revenue and poor cash flow.

Other interesting data point observed in this year’s SME
finance survey includes a surge in financing applications which peaked during
the circuit breaker period, and the resulting delay in average application
processing and funds disbursement turnaround time from 22 days in 2019 to over
45 days in 2020.

For detailed figures and data on Linkflow Capital’s research
survey, kindly visit their webpage at https://smeloan.sg/blog/2020-sme-finance-accessibility-survey.

Linkflow Capital expects business lending to remain
measured this year as government-imposed loan moratoriums starts to wind down
from December 2020. Within the context of a K-shaped recovery taking shape,
lenders might also adopt a more selective approach in when underwriting specific
sectors and industries.