SMEs and Business Collateral

Abstract

With regard to Thailand’s contemporary society, many people need working capital to support their day-to-day operating expenses. One way to get the funds they need for working capital is by a cash flow loan. Usually the collateral is necessary to secure the borrowers’ repayment. In some cases, the provision of collateral assets in accordance with the law does not meet the demand for benefits during the guarantee period. The lender is not regarded as a legally secured creditor. The limitations of Thailand's debt collection law, specifically loan repayment insurance was underscored to find improvement approaches that would benefit SMEs in this respect.