Late MSMEs without documentation of their financial background and those operating in more recurring sectors often have limited options for obtaining inexpensive financing from the formal sector or institutions appropriate financial arrangements with themselves. This is particularly true and accurate for microbusinesses working in emerging markets and during times of economic instability, when credit is not readily available. In such a case, alternative funding sources such as crowdfunding could be a likely boost. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay According to available statistics: Three-quarters of respondents had at least one existing loan in fiscal 2017, primarily to raise working capital or liquidity. flow to support growth. Not surprisingly, MSMEs in capital-intensive sectors such as mining (89%), agriculture (78%) and utilities (77%) have a greater need for credit. Among these already existing loans, more than half had requested new funds to refinance at better conditions (interest rate and duration) and 45% had to raise guarantees for the loans in response to stricter credit conditions . Source: ASEAN MSME Transformation Survey, 2017 Given that MSMEs in the ASEAN region have the greatest difficulty in obtaining funds from formal financing, it is overwhelming to see that only 4% of total respondents do 'were unsuccessful in obtaining loans in fiscal year 2017, although rejection rates were positively higher. about 92% for respondents who had been in force for almost three years with consistent operations and loan history. Most of the declined loans were in segments such as transportation and logistics, retail, and food and beverage, where competitive pressures and margin loss have led to above-average business closure rates. . be correlated with the size of the company in its field of activity. While 30% of those denied loan facilities were small businesses with annual revenues below US$3 million and around 46% already had profits above US$10 million. The majority of those who could not meet the criteria for formal lending were unable to do so due to lack of collateral assets, lack of guarantors, insufficient financial statements or business plans, or lack of sufficient credit history. Keep in mind: This is just a sample.Get a custom paper from our expert writers now.Get a Custom EssayOn average, MSMEs report that some loan approvals take 15 days, but sometimes can take longer a few weeks. While highlighting the time-consuming nature of risk-taking by MSMEs, this is an area for improvement..