Dynamics of the market of small and medium business
At the beginning of 2023, in most of the country, the situation with the supply of energy carriers to end consumers, which are representatives of small and medium-sized businesses, is improving. Thus, business begins to work more actively to improve its performance indicators, which entails the active growth of the country’s economy as a whole.
The trends in this segment of the economy last year showed a positive trend, which arose due to the fact that the majority of Ukrainian entrepreneurs remained on its territory and continued to support their business.
According to the project to support small and medium-sized businesses from the European Business Association Unlimit Ukraine, 2022.
Also, as experts note, from mid-2022, lending to financial companies and the possibility of using credit limits in banking mobile applications began to resume.
Lending trends up to 2022
The full-scale war negatively affected the retail lending market, SPD and FOP lending, and corporate lending. According to the National Bank, the volume of remote lending has decreased. If last year 85% of loans were issued online, then at the end of last year – only 70%. This is due to the fact that a significant number of borrowers are located abroad, so it became necessary to additionally assess the borrower’s credit risk.
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 amount of a loan issued 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 20 largest market participants. Previously, the top 20 companies covered 82-84% of the market. Another trend is a decrease in the percentage of financial companies providing services to individuals from 24% to 12%.
Lending conditions for SPD and FLP
Banks and financial companies also resumed lending to small and medium-sized businesses and in 2022 began to actively attract customers. The peak of sales of credit products was January 2022, which significantly supported entrepreneurs and allowed them to launch a business before the New Year holidays during the period of greatest consumer demand.
We compared the lending terms that some of these lending services offer.
Representatives of the financial market who, as of February 24, 2023, lend to small and medium-sized businesses
Minimum amount, UAH Maximum amount, UAH Maximum term Maximum payment frequency Business Position 3,000 150,000 169 days Bi-weekly Idea Bank 10,000 300,000 3 years Monthly FOR ALL 5,000 50,000 300 days Bi-weekly Selfie Credit 500 50,000 182 days Bi-weekly Your Position 3,000 150,000 169 days Bi-weekly
On the websites of companies, there is always a calculator that shows potential customers all the information necessary for making a decision in accordance with the current legislation of Ukraine and the regulatory documentation of the National 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 the necessary information is collected by the lender with the consent of the client.
The decision to issue a loan is usually made within 10 minutes. If it is positive, the borrower receives funds on his bank card. On average, for all services, no more than 20 minutes pass from the moment of applying for a loan to receiving money on the card. Refunds are also made online, the most common methods of repayment are payment in the personal account of the lender and through payment services.
The maximum loan amount for sole proprietorship and self-employed entrepreneurs has also changed over the past six months. So far, the maximum amount in financial companies is no more than UAH 150,000, while in banking institutions it is up to UAH 300,000. Some financial companies are ready to lend to entrepreneurs up to UAH 25,000 – 50,000, but for shorter periods and with a larger overpayment.
The National Bank believes that, despite the difficulties, the lending market in 2023 retains significant potential for rapid recovery and growth, which will have a positive impact on the recovery period of Ukraine after the end of the war.
