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

Creating a Backyard Memorial Garden: A Peaceful Space to Remember Loved Ones

Setting aside a corner of your backyard as a memorial garden is a meaningful way to honour the memory of a loved one — human or animal — while adding beauty and reflection to your outdoor space. Wheth...

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

Office Painting – The Right Painting Contractor Will Save You!

Planning to refurbish your Perth business and looking to select the right commercial painting contractor? An office space is probably the number one place where having high-quality paintwork and pro...

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

Why Commercial Fit Outs Melbourne Businesses Depend on for Efficient Workspaces

A well-executed commercial fit outs Melbourne solution is essential for businesses that want their workspace to support productivity, brand identity, and long-term growth. The internal environment o...

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

Why Ecommerce Web Design Is The Foundation Of Online Selling Success

A successful online store begins with structure, clarity, and purpose. Thoughtful eCommerce web design ensures that visitors immediately understand what a business offers and how to interact with it...

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

How Team Expertise Powers the NPF 3-Step Trader Training Model

Every trader dreams of achieving consistency, confidence, and complete control over their market decisions. Yet very few realise that the journey from beginner to professional is never meant to be wal...

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

The Benefits Of Kwikstage Scaffolding For Modern Construction Sites

A reliable scaffolding system is essential for construction sites that require safe access, efficient workflows, and strong structural support. Among the systems commonly used across Australia, Kwik...

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

Health & Wellness

Why Choosing a GP Bundoora Is Key to Consistent and Preventive Healthcare

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

Access to dependable primary healthcare is essential for maintaining long-term wellbeing. Choosing a trusted GP Bundoora allows individuals and families to receive ongoing medical support close to h...

What Does an NDIS Support Coordinator Actually Do?

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

The role of a support coordinator is often mentioned in NDIS conversations, but it isn’t always clearly understood. Many participants wonder what a support coordinator actually does day to day, and ho...

Why All on 4 Dental Implants Are a Life-Changing Solution for Full-Arch Tooth Replacement

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

Severe tooth loss can affect far more than appearance. It can impact chewing ability, speech, facial structure, and overall confidence. For individuals missing most or all of their teeth, All on 4 D...