Some cash-strapped small and mid-scale business operators are fleeing their banks to tap fresh loans from other banks -- even at higher interest rates.
The development is a sign of desperation among small and medium-sized enterprises (SMEs) in finding new funding as banks tighten their criteria for new loans for fear of non-performing loans.
Vipon Vorasowharid, first executive vice-president at Siam Commercial Bank's (SCB), said most SMEs seeking new loans or refinancing were not qualified.