The diffuculties bank personel encounter during crediting small and medium sized enterprises and solution suggestions

The objective of this study is to determine the problems the bank personel encounter during the credit allocation to SMEs(small and medium sized enterprises) and to suggest solutions to the problems both of the parties come accross. The research model is descriptive and it includes a survey analysis in order to display the present situation.The horizon of the study is the branches of the Public Banks in Ankara. The sample volume of the study was found 164 at %95 confidence level. The data is analyzed statistically through the program SPSS 15.According to the research findings it is found that the most important factor that affects the credit allocation to the SMEs is their unregistered operations, the bank personel wants collateral also for SMEs that has well financial performance, bank personel can not supply the documents of the SMEs on time and completely, and the manager or the owner?s lack of knowledge about credit and finance has a negative effect on crediting SMEs.Through the research findings the factors which can facilitate the operations of SMEs and the bank personel are; SMEs must apply reliable financial records system, despite their lack of education, the manager or the owner of the SMEs must have enogh information about credit and finance, SMEs must have banking relations with nearby branches before they need credit.Key Words: Credibility, SMEs, Colleteral