ORSIAD/Çamur: A Growing Demand for Accumulated Funding

Forexs - ORSIAD President Levent Çamur stated that despite the support provided in the past 11 months, SMEs are struggling to access credit, saying, "There is an increasing financing need that accumulates over time. Banks are being excessively cautious in lending."

In a statement on behalf of the Board of Directors of the OSTİM Industrialists and Businessmen Association (ORSİAD), President Levent Çamur remarked that although there has been nearly a 25% growth in SME loans in the last 11 months, this actually represents an "erosion" against inflation. He pointed out that measures must be taken to prevent the increasing difficulties SMEs face in accessing credit. “The excessive caution of banks and other financial institutions when lending to SMEs particularly ties the hands of those with collateral issues. Meeting the guarantees and securities they demand is nearly impossible for most businesses,” he said.

An Increasing Financing Need…
ORSİAD President Levent Çamur also mentioned that they anticipate the need and expectations of SMEs to access finance will be much more advanced by 2025. President Çamur stated, "The pain felt by SMEs suffering from rising costs is not just the problem of those businesses, but the problem of the country. Significant steps are being taken in terms of SMEs’ access to finance, which is the backbone of the Turkish economy. However, it is not sufficient. From the feedback we receive from our members, we clearly see an increasingly accumulating financing need. There are serious requests for support from state-backed loans, including both Credit Guarantee Fund loans and KOSGEB loans..."

Cautious Easing Despite…
President Çamur evaluated expectations that the economic management's "tightening measures" in 2024 would evolve into "cautious easing" in the first quarter of the new year. He said, "SMEs seeking financing support are expecting that the anticipated easing step will lower policy interest rates, thereby reducing credit interest rates. However, we know that a significant portion of these businesses will still face challenges regarding credit eligibility. It should not be forgotten that the exaggeratedly cautious approaches of the relevant financial institutions weaken SMEs, and supports that will enhance companies’ growth potential should be at the focal point of the economic agenda in the new year..."