REASONS FOR DENYING CREDIT

MBABANE – Banks are said to be considering three factors as the most important in their evaluation of a loan application.

These are the business’s financial assessment; owners’ reputation and the purpose of the loan. “From the banker’s perspective, the problem is not so much a lack of finance as a shortage of effective demand for credit. “Banks are inundated with loan applications that are poorly motivated; lacking in information; and not supported by required documents,” reads report on the financing model for micro, small and medium-sized enterprises (MSMEs) in Eswatini.

insufficient

Banks unanimously agree that insufficient or unreliable cash flows followed by high perceived risk or the business or project are the topmost factors in the rejection of a MSME loan application.

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