The working capital requirements of SMEs and their access to bank loans in Turkey

This study discusses working capital requirements of SMEs in Turkey and their access to bank. İnformation is obtained by literature screening. According to data available SMEs, which established with limited capital, are faced with problems of working capital, because of ınadequate equity, the low profit margin and problems with collection of receivables. The most important source of funding for SMEs, apart from equity, are loans received from banks. While Banks are lending money in line with financial datas of SMEs, due to some unrecorded activities of SMEs, financial data do not always reflect actual business volumes. SMEs are experiencing problems in accessing bank loans. Comparing the share of bank loans of SMEs in OECD member countries (Belgium, Switzerland, South Korea, Japan, Ireland, Portugal, Hungary) and SMEs in Turkey, SMEs in Turkey's share is very low.