Factors affecting SME access to bank financing: an interview study with Turkish bankers

This qualitative study sets out to determine from the perspective of bankers the factors that affect SME access to bank loans. Semi-structured interviews were conducted with 25 Turkish bank managers, and thematic analysis was used to analyse the interviews. The results revealed that the commitment of an SME to its credit obligations, combined with its financial data, affects its access to bank loans. Banks evaluate the adequacy of equity for the area of activity, the profitability of the firm, its debt ratio and current ratio, and the firm’s ability to generate sufficient cash flow. Other factors that affect access to bank loans include the length of the firm’s relationship with the bank, the industry in which the firm operates, the age of the firm and impressions gained from on-site visits. Firms that have a long-term relationship with the bank and older firms have better access to bank loans. Moreover, manufacturing sector SMEs have easier bank financing accessibility.