Why hasn't the banks been able to service such SMEs with their loans? - Seedly
 

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Asked by Anonymous

Asked on 27 Jun 2019

Why hasn't the banks been able to service such SMEs with their loans?

The banks are so big yet they can't service SMEs but P2P lending can?

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Samuel Yip
Level 3. Wonderkid
Answered on 27 Jun 2019

They could have already reached their maximum exposure. That is, they have already maxed out what the banks are willing to lend.

They could also have really weak financials and have little to offer as collaterals. If SMES are relatively new, financial performance would be hard to project for loan calculations. Hope this helps.

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