Credit concerns drive loan rejections for SMEs, survey finds

More than one-third of banks cite weak credit profiles as the leading reason for rejecting small and medium-sized enterprise (SME) loan applications, according to the Monetary Authority of Macao’s (AMCM) latest SME credit survey for the second half of 2025.

The report, which compiles responses from participating banks on lending conditions, provides a broad indication of factors influencing credit approval decisions.

Among the reasons for declining SME loan applications, “poor credit condition” ranked highest, with 33.3% of surveyed banks identifying it as a “very important” factor, as cited in a report by Macao Daily News.

The second most cited reason was “weak business performance,” with 27.3% of banks considering it a major factor in loan rejection decisions. This reflects continued pressure on smaller firms facing uneven recovery conditions and fluctuating demand.

By contrast, cost-related considerations were less significant. Only one bank reported that the relatively high operational cost of SME lending was a very important factor in rejecting applications, while 60.6% of respondents said this issue was not applicable.