The survey results confirmed the critical role that accountants play in providing information which influences lender decision-making. Only 2 per cent of respondents said they would restrict loans to SMEs.
Some small and medium-sized enterprises (SMEs) may have access to more credit down the road, but will have to pass more rigorous tests to demonstrate their creditworthiness, according to the findings of a global survey of banks conducted by The Banker magazine in association with the International Federation of Accountants (IFAC). The survey results, released today in the October issue of The Banker, in a supplement on supporting small and medium-sized companies, also confirmed the critical role that accountants play in providing information that influences lender decision-making.
The survey showed that over 20 per cent of more than 350 bankers answering questions about the future indicated that they would raise the number of new loans and increase loan amounts to existing SME clients over the next two years. Just 2 per cent of respondents said they would restrict loans to SMEs. However, bankers expect SMEs to provide more comprehensive information on their loan applications. Survey respondents indicated that they will increasingly look at cash-flow information, collateral and customer history with the bank when considering loan applications. Financial statements, key risk indicators and industry trends form part of the key information which banks are focused on when making loans decisions.
Lenders also highly value audited financial statements. Two-thirds of the respondents indicated that their lending policies require some form of assurance on the entity's financial statements from an external accountant, with audited financial statements preferred by most respondents. In addition, another 60 per cent of respondents said that accountant involvement in an SME's business would significantly and positively influence their lending decisions.
© IFAC - International Federation of Accountants
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