A bank fellow has attributed banks and other money lending firms’ reluctance to lend to Small Scale businesses to their lack of financial statements to back their borrowing.

In an interview with Money Fm news, Fabian Mpuku says financial statements are a cardinal document that help lenders access borrowers’ capability to pay back.

Mr Mpuku cited marketeers as one of the business persons in the informal sector that fail to present bank or financial statements when borrowing.

He adds that small scale businesses also deal in seasonal products whose profits are dependent on the relevance of a product in a particular season.

Mpuku further mentions that banks lend easily where there is an availability of collateral security in form of land and houses.

He sums that SMEs being run by a sole individual is another reason that make lenders think twice before approving a loan.