Access to financing has emerged as a growing challenge faced by small and medium-sized enterprises, according to the latest SME Development Survey which polled 2,513 local enterprises across a range of sectors. According to the findings released on Wednesday (Nov 2), 22 per cent of respondents said they face financing issues, up from 14 per cent last year.
It ranked among the top four cost concerns, behind perennial issues such as manpower, materials, and rent. SMEs with financing issues cite higher bank interest rates as the biggest problem. They're also being squeezed harder by suppliers, with tighter access to supplier credit.
The tightening of credit available to SMEs is also starting to have a significant impact on the cash flow of companies, according to the survey conducted by DP Information Group. It found that cash flow problems are now the top business concern of seven percent of SMEs - more than double last year's figure of three percent.
