An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman

The challenges faced by SME to get access to formal lending are well-known. Lending to SME continue, but mostly it was backed up by collateral. However, providing collateral to secure financing is a mammoth task for SME. Establishment of credit guarantee company to woo commercial lenders to lend to...

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Main Authors: Jamil, Ikmal Khairulluzin, Zakaria, Roza Hazli, Othman, Azmah
Format: Article
Language:English
Published: Universiti Teknologi MARA, Cawangan Melaka 2019
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/30008/
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author Jamil, Ikmal Khairulluzin
Zakaria, Roza Hazli
Othman, Azmah
author_facet Jamil, Ikmal Khairulluzin
Zakaria, Roza Hazli
Othman, Azmah
author_sort Jamil, Ikmal Khairulluzin
building UiTM Institutional Repository
collection Online Access
description The challenges faced by SME to get access to formal lending are well-known. Lending to SME continue, but mostly it was backed up by collateral. However, providing collateral to secure financing is a mammoth task for SME. Establishment of credit guarantee company to woo commercial lenders to lend to SME is a strong signal that collateral remains strong in dictating the credit flow to the SME. Past studies have been too concentrating on collateral lending until the area of financing without collateral to SME has been neglected. Hence, it is vital to scrutiny the factor’s considered by the commercial lenders to grant credit to SME without collateral, as collateral is the main reason SMEs are being denied on the formal lending. Therefore, this conceptual paper was formed to discuss the factors that might influence lending to SME without collateral by examining diverse literature and past studies related to financing to SME.
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spelling uitm-300082025-07-02T07:17:23Z https://ir.uitm.edu.my/id/eprint/30008/ An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman ajobss Jamil, Ikmal Khairulluzin Zakaria, Roza Hazli Othman, Azmah Small business. Medium-sized business Malaysia Financial management. Business finance. Corporation finance The challenges faced by SME to get access to formal lending are well-known. Lending to SME continue, but mostly it was backed up by collateral. However, providing collateral to secure financing is a mammoth task for SME. Establishment of credit guarantee company to woo commercial lenders to lend to SME is a strong signal that collateral remains strong in dictating the credit flow to the SME. Past studies have been too concentrating on collateral lending until the area of financing without collateral to SME has been neglected. Hence, it is vital to scrutiny the factor’s considered by the commercial lenders to grant credit to SME without collateral, as collateral is the main reason SMEs are being denied on the formal lending. Therefore, this conceptual paper was formed to discuss the factors that might influence lending to SME without collateral by examining diverse literature and past studies related to financing to SME. Universiti Teknologi MARA, Cawangan Melaka 2019-10 Article NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/30008/1/30008.pdf Jamil, Ikmal Khairulluzin and Zakaria, Roza Hazli and Othman, Azmah (2019) An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman. (2019) Academic Journal of Business and Social Sciences (AJoBSS) <https://ir.uitm.edu.my/view/publication/Academic_Journal_of_Business_and_Social_Sciences_=28AJoBSS=29.html>, 3 (1). pp. 1-19. ISSN 2590-440X https://journal.uitm.edu.my/ojs/index.php/AJoBSS/
spellingShingle Small business. Medium-sized business
Malaysia
Financial management. Business finance. Corporation finance
Jamil, Ikmal Khairulluzin
Zakaria, Roza Hazli
Othman, Azmah
An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman
title An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman
title_full An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman
title_fullStr An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman
title_full_unstemmed An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman
title_short An evaluation of financing without collateral to small and medium enterprises in Malaysia: a conceptual framework / Ikmal Khairulluzin Jamil, Roza Hazli Zakaria and Azmah Othman
title_sort evaluation of financing without collateral to small and medium enterprises in malaysia: a conceptual framework / ikmal khairulluzin jamil, roza hazli zakaria and azmah othman
topic Small business. Medium-sized business
Malaysia
Financial management. Business finance. Corporation finance
url https://ir.uitm.edu.my/id/eprint/30008/
https://ir.uitm.edu.my/id/eprint/30008/