Dynamics of the small and medium business market
At the beginning of 2023, in most of the country, the situation regarding the supply of energy carriers to end consumers, representatives of small and medium-sized enterprises, is improving. Thus, the business world begins to work more actively to improve performance indicators that require active growth of the country’s economy as a whole.
Trends in this segment of the economy over the past year showed a positive trend, which is due to the fact that the majority of Ukrainian entrepreneurs remain on their territory and continue to support their business.
According to the project to support small and medium enterprises from the European Cooperation Unlimit Ukraine, 2022.
In addition, as experts have pointed out, as of the middle of 2022, the possibility of lending to financial companies and using credit lines in banking mobile applications has resumed.
Credit trends up to 2022
The large-scale war has negatively impacted the retail loan market, SPD and FOP loans, and corporate loans. The volume of remote lending has declined, according to the Central Bank. If 85% of loans were issued online last year, at the end of last year – only 70%. This is due to the fact that a significant number of borrowers are located abroad, so a separate assessment of the borrower’s credit risk has become necessary.
In addition, the average size of a loan issued online decreased from UAH 4.2 thousand in 2021 to UAH 2.7 thousand last year. At the same time, in offline lending, the average loan amount increased from UAH 6.4 thousand in 2021 to UAH 9.9 thousand in 2022.
Microcredit services are currently provided by 89 financial companies. At the same time, 91% of the market falls on the top 20 market participants. Previously, the top 20 companies covered 82-84% of the market. Another trend is that the proportion of financial companies providing services to individuals has decreased from 24% to 12%.
Lending terms for SPD and FLP
Banks and finance companies have also resumed lending to small and medium-sized businesses, actively attracting customers in 2022. The peak of sales of credit products was January 2022, which significantly supported entrepreneurs and allowed them to start a business before the New Year holidays during the period when consumer demand was at its highest.
We compared the lending terms offered by some of these lending services.
Representatives of the financial market lending to small and medium-sized enterprises as of February 24, 2023
| Minimum amount, UAH | Maximum amount, UAH | Maximum time | Maximum payment frequency | |
| Job position | 3000 | 150 000 | 169 days | Biweekly |
| Idea Bank | 10,000 | 300 000 | 3 years | Once in a month |
| FOR ALL | 5000 | 50,000 | 300 days | Biweekly |
| selfie loan | 500 | 50,000 | 182 days | Biweekly |
| your stance | 3000 | 150 000 | 169 days | Biweekly |
On the websites of companies there is always a calculator that shows potential customers all the necessary information for making a decision in accordance with the current legislation of Ukraine and the regulatory documents of the Central Bank of Ukraine.
You can apply online 24/7. To do this, you must provide a passport and identification code. Documents on business activities are not required, all necessary information is collected by the lender with the consent of the client.
The decision to grant a loan is usually made within 10 minutes. If it is positive, the borrower receives money from the debit card. On average, for all services, from the moment of applying for a loan to receiving money from the card, it takes no more than 20 minutes. Refunds are also made online, the most common repayment methods are payments made in the lender’s personal account and through payment services.
The maximum loan amount for individuals and self-employed entrepreneurs has also changed in the last six months. So far, the maximum amount in financial companies exceeds UAH 150,000, in banking institutions – UAH 300,000. Some financial companies are ready to lend to entrepreneurs up to 25,000 – 50,000 UAH, but for shorter periods and with a larger overpayment.
Despite the difficulties, the Central Bank believes that the lending market in 2023 has significant potential for rapid recovery and growth, which will positively affect the recovery of Ukraine after the end of the war.
Source: Focus
John Holton is a seasoned author and journalist, known for his expertise in economics. He currently works as a writer at 24 news breaker, where he provides readers with in-depth analysis and commentary on the latest economic developments. With a background in finance and a talent for explaining complex economic concepts in a clear and accessible way, John’s writing is a must-read for anyone interested in staying informed about the economy.