The credit use and charges power tradesmen and craftsmen in Turkey: example of TESKOMB

Tradesmen and craftsmen are small scales, local enterprises having insufficient financial structures. These enterprises established with insufficient capital use credit in order to overcome their financial difficulties. But most of time they are obliged to use these credits at high cost and in short terms. When insolvency clause is added to this current state, their financial difficulties come to insurmountable condition. As they sometimes couldn't use these credits required they fall into insolvency clause. Nowadays many countries progress support programmes to save the tradesmen and craftsmen from the situation they are in. In our country, too much tradesmen credits supported by the Treasury via TESKOMB are one of the important supports. This credit providing low interest, the opportunity of payback in long terms and assurance easiness is made to use by each tradesman registered in the enrollment of the tradesmen and craftsmen via Halk bank.In this study, it will be investigated how effectively have the tradesmen and craftsmen used Treasury-backed loans which have been used for many years in Turkey and what are their repayment capacity. In order to form the theorical aspects of the study, the Turkish and English sources on the concept of "tradesmen" and "craftsmen" were scanned literature. In this study, deduction method was used. The data related with the practice of the study was derivated from the questionnaire which was applied to the tradesmen and craftsmen that had used loans from the Treasury. The questionnaire findings and economical analysis were evaluated in the practice part. KEYWORDS Tradesmen and Craftsmen, Micro Enterprises, Trades Loans, Loan Repayment Problems, Treasury Support, Halkbank, TESKOMB, Questionnaire, Field Study and Logit Regression.