Hashtag
Men's Weekly

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:

Business News

Compressed Air Pipe and Fittings: The Definitive Guide to Designing and Specifying a High-Performance Industrial Air System

Compressed air is the invisible workhorse of Australian industry. In manufacturing plants, automotive workshops, food processing facilities, mining operations, and construction sites across the coun...

Hashtag.net.au - avatar Hashtag.net.au

Top 7 Remote Work Ideas for Professionals in Australia

Flexible employment has quickly become a defining feature of modern careers in Australia. Many professionals prefer remote work to have better control over their schedules. Businesses have also realis...

Hashtag.net.au - avatar Hashtag.net.au

How Condition Based Monitoring Improves Reliability in Industrial Equipment

Modern industrial operations rely on complex machinery and systems that must operate continuously under demanding conditions. From manufacturing facilities to energy plants and hydraulic systems, equi...

Hashtag.net.au - avatar Hashtag.net.au

Why Pipe Floats Are Important for Supporting Floating Pipeline Infrastructure

Many industrial sectors rely on floating pipeline systems to transport fluids, slurry, or sediment across water surfaces. Industries such as dredging, mining, wastewater management, and marine constru...

Hashtag.net.au - avatar Hashtag.net.au

Why Mining Hose Systems Are Essential for Heavy-Duty Industrial Applications

Mining and heavy industrial operations require specialised equipment capable of handling demanding environments. The movement of abrasive materials, slurry mixtures, and large volumes of water places ...

Hashtag.net.au - avatar Hashtag.net.au

Why Retail Cleaning Is Important for Maintaining Safe and Professional Store Environments

Retail environments experience constant foot traffic from customers, staff, and suppliers throughout the day. Because of this activity, retail spaces require consistent cleaning and maintenance to e...

Hashtag.net.au - avatar Hashtag.net.au

Health & Wellness

Specialist Disability Accommodation Explained: What It Is, Who Qualifies, and How to Access It in Perth

Hashtag.net.au - avatar Hashtag.net.au

For many Australians living with significant disability, the question of where to live — and how to live there safely and comfortably — is one of the most important and most complex they will ever f...

How Smart Site Managers Source Wholesale Medical Supplies to Keep Their Teams Safe and Compliant

Hashtag.net.au - avatar Hashtag.net.au

If you're running a construction site, a civil project, or a trade-based operation anywhere in Australia, first aid preparedness probably sits somewhere near the bottom of your planning checklist — ...

Experience ultimate comfort: the health benefits of an adjustable bed and mattress

Hashtag.net.au - avatar Hashtag.net.au

Imagine waking up each morning feeling truly refreshed, without the usual aches and stiffness. For many, a traditional flat bed can fall short in providing the tailored support needed for optimal rest...