The Office of SME Promotion is developing a creditrating database to help small and medium enterprises gain easier access to credit.
"We have talked with many banks about the creditrating database, whose format they have welcomed because this will help them feel con¬fident about the business back¬ground and financial structure [of an applicant] before providing loans," Osmep director general Yuthasak Supasorn said yesterday.
Access to credit is the biggest obstacle to growth for SMEs. The interestrate hike on bank loans is becoming another worry of SMEs, he said.
The creditrating database will scan the financial and business capa¬bilities of 100,000 businesses regis¬tered with Osmep. Banks can exam¬ine the database before deciding to extend loans.
The format of the database is expected to be finalised next year.
The interestrate hike is causing operators of small businesses to turn to loan sharks or use their savings for investment. SMEs might delay their big projects while interest rates are climbing, he said.
Osmep suggests businesses be more cautious about investing while interest rates are rising and seek new markets to boost revenues, but the strong baht is another impediment to SMEs' exports. Business owners should ask banks to extend the instalment period, he said.
"Many banks are offering finan¬cial programmes to ease the finan¬cial cost for SMEs. Even though they have to pay more debt, the extended payment period could absorb the burden," he said.
Pakorn Partanapat, executive vice president of Kasikornbank, said the rate hike had not affected SMEs much, since interest accounted for only 4 per cent of their total costs, unlike hotel and transport busi¬nesses, which would be greatly affected because they had invested more in fixed assets.
KBank recommends SMEs pre¬pare for the expected hike in inter¬est rates again next quarter by con¬trolling business costs and selecting financial products to match their needs.
KBank targets SME loans to grow by 810 per cent this year. It provid¬ed loans of Bt99.94 billion for SMEs in the first six months.
SME loans account for 40 per cent of its loan portfolio.
Paiboon Ponsuwanna, chairman of the Thai National Shippers' Council, said businesses should improve their supply chain and logistics in a bid to reduce operating costs due to the higher interest rate and stronger baht.