The challenges facing SMEs in accessing credit (loans) in Ghana

The Challenges facing Small and Medium Enterprises (SMEs) in Obtaining Credit in Ghana, highlights the issues facing Ghana's SMEs in their quest to accessing loans from financial institutions to undertake various business activities all in the name of creating jobs and the ultimate goal of helping to reduce poverty. There are financial institutions that are willing to provide credit facilities to SMEs but Ghanaian SMEs are not able to meet the requirements of these financial institutions even though they are really in need of the loan. Chief among the requirements demanded by these financial institutions is collateral. The nature of collateral in this part of the world is mostly landed property, which most SMEs cannot provide to cover the amount they really need. As a result, some of these SMEs settle for an amount far less than what they truly require to really drive their business agenda. This book thus takes a look at these challenges from the perspective of the Ghanaian SME operators.