Google AI

Business Telegraph

.
The Times


.

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

  • Written by: Telegraph Magazine


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:

Entrepreneurs & Leaders

Protecting Lone and At-Risk Workers: What Australian Employers Need to Know

From the community nurse visiting a client's home after dark, to the retail worker closing up alone, the real estate a...

The Benefits of Controlled Growing Environments

Growing plants is anything but simple. It takes a lot to keep them alive. Even the best farmers battle daily with weathe...

What Travellers Really Appreciate About Hotel Rooms

Hotels dump way too much cash into stuff nobody asks for. Weird designer chairs that destroy your back, complicated ligh...

Protect Your Projects with the Building and Construction Lawyers in Brisbane

Building projects involve detailed contracts, staged payments, strict timelines and several parties with different res...

How Local Amenities Can Influence Your Property Decision

Buying or renting a property is a lot more than deciding whether you like the indoors. But your actual life happens outs...

How to Document Workplace Harassment and Protect Yourself

Workplace harassment is not a joke. It’s something thousands of people experience every day. We as a society still can’t...

Simple Ways to Make Your Marketing Displays Stand Out

A marketing display only has a few seconds to attract attention. Whether it is placed in a shop, reception area, office...

How to Prepare Your Home Before Putting It on the Market

Selling your home can make you look at your own property through different lenses. It happens. When you’re preparing to ...

What Should You Look for in a Commercial Property Investment?

Buying a commercial property isn't the same as buying a home. The numbers in this purchase matter a lot more. To make ma...