DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
Lenders face information gaps with small firms: shorter track records, less audited data and fewer assets to pledge as collateral.
How it works
As a result, small businesses often rely on owners’ funds, bank overdrafts, trade credit and, increasingly, digital lenders and platforms.
Small and medium-sized enterprises often find credit more expensive and harder to obtain than larger firms do.
What to watch
Governments use loan guarantees, credit bureaus and development banks to narrow the gap, with mixed results depending on design.
Key concepts
- SMEs
- Credit
