However, despite their important role in the Latvian economy, in the last two years, non-disbursement of loans has become an acute problem situation. Agris Indričevs, head of the Latvian branch of “SME Finance”, told more about the need for financing for SMEs, about the biggest mistakes and obstacles to receiving financing and what young entrepreneurs need in an interview with the online magazine Klik.
– Financing is very important for SMEs – nothing can happen without it. What are the main risks for these companies? Why do SME banks very often refuse financing?
– Here we should primarily talk about certain banks’ risk appetite and loan amounts. For quite a long time, banks have a strong tendency to cooperate with lower-risk clients and larger loan amounts. It is related to the internal regulations of Latvian banks and other nuances. Also credit maintenance.
In general, it is not profitable for banks to serve small companies, although there are banks that basically do not even consider anything that is less than 300,000 euros, because practically it is not the goal of their business – it does not pay off.
2023-08-27 21:01:00
#main #risks #faced #small #mediumsized #enterprises
