FACTORS AFFECTING THE ACCESS OF SMES TO BANK LOANS: THE CASE OF TURKEY

Abstract

This study examines the factors affecting the access of SMEs to bank loans. For the study, semi-structured interviews were conducted with 10 bank executives that are employed by different banks. As a result of the content analysis conducted, it is found that access to bank loans is affected by the results of the financial intelligence process and the evaluation results of the bank about the financial records of the firm. Moreover, whether the bank has a long term relationship with the SME and firm age are other factors influencing access to bank credits. The assessment of the bank about the risk factors also affects its loan decision.