SMEs can now secure loans with low CBC scores, without collateral

SMEs can now secure loans with low CBC scores, without collateral

Officials point to alternative funding channels, emphasising that business credibility is key to attracting investors and securing financial support.

Small and medium-sized enterprises (SMEs) facing low Credit Bureau Cambodia (CBC) scores may still access financing without collateral, as senior officials highlight alternative funding channels and the importance of business credibility in attracting investors and securing financial support.

The statements were made during the “First National Forum on Financing for Micro, Small and Medium Enterprises (MSMEs) 2026”, themed “Access to Finance for MSMEs”, held in Phnom Penh from Tuesday to Wednesday.

Presiding over the ceremony, the Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth said the government has established eight institutions to support MSMEs, alongside private banks and financial institutions, each with its own mandate and specialisation.

Among these institutions, the Deputy Prime Minister highlighted that the Cambodia Securities Exchange has expanded SMEs’ access to equity financing through its Growth Board, which requires a minimum capital of $500,000 and at least one year of profitability.

“In fact, three companies have successfully listed and traded on this market, with a total value of approximately $14 million,” Pornmoniroth said, noting that although the number of listed firms remains small, the market has significant potential to help SMEs mobilise capital through two main channels.

“The first is the sale of equity securities (shares) and the second is the issuance of debt securities (bonds),” he said, adding that these channels enable SMEs to mobilise capital from investors to support business expansion, strengthen operations and meet financing needs without relying on traditional collateral-based lending.

“Instead, SMEs must demonstrate credibility through sound business plans, transparency and management capacity that meets governance standards,” the Deputy Prime Minister said.

He explained that these factors could build investor confidence even in the absence of collateral, noting that investors would be more willing to invest in businesses with effective management, viable operations, sustainable profitability and the ability to generate returns.

Reiterating the sector’s potential, Pornmoniroth said that the three companies had mobilised approximately $14 million, indicating considerable room for further growth in capital market financing for SMEs.

During a press conference, the President of the Board of Directors of the Federation of Associations for Small and Medium Enterprises of Cambodia Te Taingpor said many businesses had suffered declines in their CBC scores during the Covid-19 pandemic.

He said that FASMEC had requested the National Bank of Cambodia and the Ministry of Economy and Finance to ease certain measures, as over 70% of SMEs had been unable to repay their loans due to the pandemic.

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