At 6 a.m., in a small corner of Dong Xuan Market, Dieu Linh, a clothing stall owner, busily arranges her goods on shelves. Having worked at the market for over 15 years, she used to think simply making ends meet was enough. But in recent years, changing shopping habits have forced her to adapt: selling online, offering combo packages, and running ads on social media.

"Trying new sales strategies requires capital, but it's not easy for small business owners like us to get bank loans due to complicated procedures and lack of collateral," she says, her hands still swiftly hanging clothes on racks.

Dieu Linh's clothing store at Dong Xuan Market, Hoan Kiem District, Hanoi. Photo: Nga Thanh

Dieu Linh's clothing store at Dong Xuan Market, Hoan Kiem District, Hanoi. Photo: Nga Thanh

Linh is not alone. Many small businesses face difficulty accessing formal credit due to a lack of collateral, invoices, or accounting documents. Meanwhile, they regularly need capital for purchasing goods, renovating stalls, expanding their business, or managing cash flow during peak seasons.

According to a 2024 report by the ASEAN+3 Macroeconomic Research Office (AMRO), only about 30% of micro, small, and medium-sized enterprises (MSMEs), including small traders and household businesses, can access bank credit in Vietnam. A representative of the Vietnam Association of Small and Medium Enterprises also stated that only 30-35% of businesses eligible for loans have collateral. The remaining businesses have almost no access to credit based on future cash flow.

Financial expert Dr. Hoang Van Ninh observes: "About 70% of small businesses face obstacles due to collateral requirements and complex approval processes. Many are forced to resort to informal lending sources with high interest rates, which can easily lead to an inability to repay debts and affect their livelihoods."

Faced with these barriers, many small business owners are turning to small loans from consumer finance companies. With limits of 10-100 million VND, flexible terms ranging from a few months to three years, and no collateral requirements, these loans are suitable for working capital needs like purchasing inventory, renovating stalls, or expanding business operations.

A representative of SHBFinance, a licensed consumer finance company, stated that the advantages of simple procedures, quick disbursement, and on-site service make this type of loan increasingly preferred by small businesses, especially in traditional markets and rural areas.

"For small businesses, cash loans or cash cards under 100 million VND are suitable solutions. Cash cards, in particular, offer customers the flexibility to withdraw funds when needed without repeating the application process," said a product development representative of the company.

To effectively reach small business customers, SHBFinance has expanded its services to traditional markets and rural areas where formal financial systems are limited. The company has deployed an on-site service model through a team of consultants, while also applying a fully digitized platform to shorten processing time. As a result, the percentage of individual business households among SHBFinance's customers increased by 7% in 2024 compared to the same period the previous year.

SHBFinance staff provide on-site consulting to small businesses. Photo: SHBFinance

SHBFinance staff provide on-site consulting to small businesses. Photo: SHBFinance

Doan Nhu Vy (Quang Nam), a customer who took out a 50 million VND loan from SHBFinance, said he frequently needs capital to purchase goods, especially during peak seasons when brands offer deep discounts.

"Business is often seasonal, and if you can't secure capital in time, you can easily miss opportunities to purchase goods at good prices. Being approved and receiving disbursement within the same day helps me keep up with the constantly changing business demands," Vy shared. He added that the quick and flexible support also helps reduce pressure in the context of limited human resources and a heavy workload.

Ms. Olena Khlon - General Director of SHBFinance presents an award to customer Doan Nhu Vy (Quang Nam). Photo: SHBFinance

Ms. Olena Khlon - General Director of SHBFinance presents an award to customer Doan Nhu Vy (Quang Nam). Photo: SHBFinance

According to an SHBFinance representative, small businesses often require quick access to working capital but face difficulties accessing bank credit. Using appropriate financial tools, such as small loans or cash cards, allows them to proactively manage their capital during crucial times without relying on informal lending channels.

"With legitimate and suitable financial solutions, small businesses can manage their cash flow better, maintain stable business operations, and gradually develop in a more professional direction," the representative stated.

However, according to some financial experts, providers need to strengthen supervision and transparency in their processes, ensuring borrowers fully understand loan terms, interest rates, and repayment obligations. Borrowing is only truly effective when borrowers have a clear plan and stable repayment capacity. This not only protects borrowers but also contributes to maintaining financial stability and sustainable consumption in the economy.

Minh Ngoc