Abstract
This study analyzes the SME lending practices and credit decision procedures of banks with content analysis method. For the study, 10 bank executives who are employed by banks that operate in İstanbul and Ankara were interviewed. Semi-structured in-depth interview technique was used for the interviews. As a result of the content analysis, it was found that banks make a preliminary assessment in the branch and collect financial intelligence after the loan application. The executives declared that although they request business plans from the SMEs that apply for bank loans, most of the SMEs can not present such a plan and the banks’ staff are obliged to make the projections. Inadequate equity capital, a high debt ratio and being a newly established firm causes rejection in loan applications. All of the banks use credit scoring method in the evaluation process.
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