Is Weak SME Loan Demand a Sign That Credit Is Abundant?

[johnblockbuster]

No — weak loan demand often signals constrained access rather than sufficient availability. When credit standards are tight, many SMEs self-select out of the application process because expected delays, documentation burdens, or unfavorable terms don’t match operational needs.

In this context, timing becomes critical. For SMEs, delayed liquidity can mean missed growth opportunities, stalled investment, or even operational stress. Credit access is therefore not about convenience, but about survival and competitiveness in fast-moving markets.

[madmax]

weak demand my ass, ppl just know theyre gonna get rejected or dragged for months