For seven months, the volume of loans issued to small and medium-sized businesses by commercial MFOs exceeded 10 billion rubles.

The volume of loans issued to small and medium-sized enterprises (SMEs) by commercial MFIs is growing: in seven months they exceeded 10 billion rubles, and by the end of the year they can reach 18–20 billion rubles, which is 30–40% higher than last year. Microfinanciers are interested in developing new segments against the backdrop of tighter regulation of the industry and a decrease in the marginality of the core business, while SMEs are interested in the possibility of urgently obtaining funds to cover cash gaps and urgent payments. However, the segment carries additional risks, and not all MFIs are ready to work in it.

According to the results of January-July, the volume of loans issued to small and medium-sized enterprises (SMEs) by commercial MFIs exceeded 10 billion rubles, while for the whole of 2022 the figure was at the level of 14 billion rubles, the experts of MoneyMen IFC calculated. At the end of the year, they expect the volume of loans to be issued in the amount of 18–20 billion rubles, that is, an increase may reach 30–40%. “The share of loans for business development may well grow by a third,” Igor Smirnov, general director of MCC Credititter, also expects.

Growth in the segment is due to several companies that have the product “SME loans” in their business strategy, said Elman Mehdiyev, Chairman of the Board of SRO Mir. This indicates rather a more active position of these companies, he believes. In particular, SME loans currently account for about 11% of the portfolio at MFC MoneyMan, which is almost 2 percentage points more than a year earlier.

In MFC Webbanker, 20% of clients are representatives of SMEs, and the figure has been growing since 2020. “The number of entrepreneurs is growing, their number has increased further with the departure of foreign brands. And MFIs, with tighter regulation, are looking for new markets and directions of development, which means they will be ready to offer attractive financing conditions to microbusinesses,” explains Igor Smirnov.

Mostly, according to the IFC “MoneyMen”, loans are attracted by enterprises engaged in the field of trade, which account for over 80% of the total issuance. “The growing need of entrepreneurs for borrowed funds is associated with an increase in the number of people who want to run their business on marketplaces,” the company explains (see Kommersant dated February 7, 2022). “Among the purposes of the loans were making a payment for renting a room for a theater or buying livestock for a farm,” adds Andrey Ponomarev, CEO of the Webbankir online financial platform.

At the same time, state-owned MFIs are focused on working with enterprises in a particular region and mainly issue loans to those of them that are employed in priority sectors of the economy for this region. Such MFIs can issue loans to enterprises for up to three years in the amount of up to 5 million rubles, the rate does not exceed the key rate for enterprises from priority industries (see Kommersant dated February 16, 2022).

According to SRO MiR, commercial MFIs most often issue loans to businesses in the amount of about 300 thousand rubles. According to Expert RA, loans of this type are issued for a period of several months at a rate of 40-100% per annum.

“In addition, it is necessary to understand that the main purpose of applying for such loans to MFIs is often emergency coverage of cash gaps, that is, entrepreneurs need money urgently, for a short period of time, and they are ready to overpay for it,” says the senior director for banking ratings at Expert RA” Igor Alekseev.

Microloans of commercial MFIs are not capable of solving investment problems, therefore they can be used by SMEs only as a temporary measure to compensate for a “cash gap” or make an urgent payment, Elena Dybova, vice president of the Chamber of Commerce and Industry of Russia, admits.

However, in the current economic conditions, MFIs are also cautious about the SME segment. In particular, Eqvanta Group does not plan to resume a closed lending project. People who go about their business, still make delays a little more often than hired employees, Andrey Ponomarev admits, working with this segment “requires additional competencies from companies” if loans are issued for larger amounts and for a long period.

Polina Trifonova