| dc.description.abstract | Title: Factors affecting the debt repayment capacity of small and medium-sized
enterprise customers at Joint Stock Commercial Bank for Investment and Development
of Vietnam – Nam Dong Nai Branch.
Abstract:
For many SMEs and entrepreneurs, credit is the most common source of external
capital, and they are typically excessively dependent on traditional debt to satisfy their
start-up, cash flow, and investment requirements (Nairobi, 2015) . Commercial banks
and financial organizations are potential sources of financing for small businesses.
However, Lending to SMEs is a time-consuming and difficult undertaking since several
factors influence their viability and loan repayment behavior. Therefore, assessing the
debt repayment ability of customers is considered one of the most important tasks of
commercial banks. Currently, both domestic and foreign, there have been many studies
related to this issue. However, those studies are mainly related to assessing the loan
repayment ability of individual customers, the number of studies related to corporate
customers, especially small and medium enterprises - accounting for 98% of the
country's total number of businesses and contribute about 48% to the country’s GDP
(An Empirical Analysis of Credit Accessibilty of Small and Medium Sized Enterprises
in Vietnam, n.d.) – still limited. At BIDV Nam Dong Nai, SME customers outstanding
loans account for roughly 40% of total outstanding loans, but the proportion of bad
debts accounts for more than 79% of the proportion of bad debts of the whole branch.
While reality shows, the economy's bad debt mainly comes from corporate customers.
As a result, it is critical to investigate and comprehend the aspects influencing SME
loan repayment abilities. This thesis identifies and examines the factors influencing the
loan repayment abilities of small and medium-sized firm customers at the Nam Dong
Nai Branch of the Joint Stock Commercial Bank for Investment and Development of
Vietnam. | en_US |
