Google AI


Modern Australian

Linkflow Capital: SME Loan Interest Rates Spike to 8.16% in 2023, Average Loan Quantum Drops 42%

Research by Linkflow Capital reveals significant tightening in SME financing accessibility in 2023

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:

  • Increased Borrowing Costs: The average SME business loan interest rate reached a high of 8.16% per annum in 2023.
  • Reduced Loan Quantum: The average loan quantum approved decreased to $130,236 in 2023, continuing a downward trend from $184,345 in 2022.
  • Revenue profile of users improved slightly: Increased proportion of users in higher revenue brackets. 50% of users reported annual revenue below $300K (down from 57% in 2022).
  • Digital banks gaining traction: Digital banks' share of loan origination within Linkflow's platform rose to 17%, a more than 3-fold increase from 5% in 2022.

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.

About Linkflow Capital

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.

Website:
Facebook:
LinkedIn:

Understanding a dental implant Melbourne Treatment Plan

A dental implant Melbourne patients may consider is one option for replacing a missing tooth, but suitability depends on oral health, bone support a...

How 3PL Logistics Australia Supports Faster and More Efficient Supply Chains

Why Has 3PL Logistics Become Important for Growing Businesses?  Gone are the days when supply chains were simpler and in minimal quantity. Now, the...

Common Skin Concerns and Treatment Options Available in Melbourne

Skin concerns can develop gradually or become noticeable following changes in age, lifestyle, sun exposure or hormonal factors. Pigmentation, rednes...

Why a Code-Compliant Home Can Still Feel Uncomfortable

When people build or renovate a home, they usually expect that meeting current building requirements will also produce a comfortable place to live. ...

Breach of Contract in Business: What Are Your Options?

Contracts are essential to business relationships. They establish expectations, allocate responsibilities and provide a framework for delivering goods...

How Pest Control Companies Can Rank for the Problems Customers Search First

Introduction SEO for Pest Control needs to start with the customer’s problem. Most people do not search for pest services in a neat or technical wa...

What Are the Benefits of Renovating an Older Home in Sydney?

Sydney has plenty of character homes, from Federation cottages to mid-century brick homes. Renovating rather than rebuilding can preserve what makes t...

Pool and Deck Design: How to Plan the Perfect Outdoor Living Space for Your Sydney Home

For many Australians, the backyard is where life happens. Summer barbecues, weekend swims and long evenings outdoors are all part of the lifestyle, ...

Is Solar Pool Heating Worth It? What Sydney Homeowners Should Know

There's nothing quite like a backyard pool on a hot Sydney day. But once autumn rolls in, many pools sit unused for months because the water is simp...

Planning a Luxury House Move: A Week-by-Week Timeline for Prestige Sydney Homes

Selling or buying a prestige home is a major milestone. Whether it's a waterfront residence in Birchgrove, a grand Federation home in Haberfield or ...

Downsizing or Upgrading Your Caravan? Here's How to Sell It Without the Hassle

Selling a caravan can feel like a major task, especially when you are unsure about its value, paperwork, or how to find a buyer. Whether you are dow...

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Metal Fabrication: Choosing Metal Fabrication Melbourne Services for Custom Projects

What Modern Metal Fabrication Involves From individual components to complete structures, metal fabrication brings together processes such as desig...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Full-Height vs. Pop-Top Caravan: Which Is Better for Family Travel across WA?

A pop-top caravan is an excellent choice for travellers who want the comfort of a caravan without committing to a larger, bulkier setup. With a lowe...

Bottle Label Printing: Key Factors for a Professional Finish

Why the Printing Method Matters When businesses need packaging or printed containers developed for a particular application, the right supplier can m...