Overcoming Barriers to SME and Mid-Corporate Financing in a Recovering Economy

By Sivuyile Makiza, Coverage Head for Commercial Banking, Access Bank South Africa

As South Africa continues its gradual economic recovery, one theme remains constant. SMEs and mid-corporates still face significant barriers when accessing the funding they need to grow, compete, and contribute meaningfully to national development.

Despite improving market sentiment driven by lower interest rates and renewed business confidence, many businesses continue to encounter challenges in securing financing aligned to their operational realities.

At Access Bank South Africa, we see this funding gap not only as a challenge, but as an opportunity to rethink how financial institutions support business growth. Learn more about Access Bank South Africa’s approach to business and commercial banking.

The Persistent Barriers to Business Financing

1. Traditional Credit Models Do Not Always Fit

Conventional credit assessment models rely heavily on collateral, long trading histories, and rigid financial statements. Many SMEs, particularly those in fast-growing or emerging sectors, do not fit neatly into these frameworks. In an increasingly volatile global environment, where market conditions can shift rapidly, these rigid models can further limit access to funding.

As a result, viable businesses are often excluded from accessing timely financing, creating a disconnect between opportunity and capital.

2. Limited Working Capital Support

Across South Africa, more than 70 percent of SMEs identify working capital as their most urgent need. However, solutions such as revolving credit, supply chain finance, and trade finance remain underutilised. This is often due to lack of awareness, complex application processes, or slow execution.

Explore trade finance solutions designed for growing businesses.

3. Slow Turnaround Times

Speed is critical in today’s business environment. Delayed credit decisions can result in missed tenders, delayed shipments, or lost commercial opportunities. This urgency is amplified by external pressures such as fluctuating costs and supply chain disruptions, where timing can directly impact profitability. Businesses require financial partners that can move at the same pace as their operations.

Reducing turnaround times is not only a service improvement. It is a competitive advantage.

4. Vulnerability to Global Market Disruptions

Geopolitical tensions are intensifying many of the existing barriers to SME and mid-corporate financing. Ongoing global instability has contributed to rising operating costs, particularly in fuel, raw materials, and imported goods, placing additional strain on already tight margins.

At the same time, supply chain disruptions are causing delays in production and delivery cycles, increasing the need for accessible and responsive working capital. Businesses are often required to hold more liquidity to manage these uncertainties, further complicating their funding needs.

Currency volatility and inflationary pressures add another layer of risk, particularly for businesses exposed to international trade. For South African SMEs, these global dynamics are not abstract, they directly impact day-to-day operations, cash flow stability, and the ability to plan for growth.

5. Overreliance on Traditional Banking Relationships

Many mid-corporates remain fully banked with large institutions, yet experience limited flexibility, rigid structures, and insufficient strategic engagement.

In a rapidly evolving economic landscape, businesses increasingly require partners who can adapt to changing conditions and provide tailored, forward-looking solutions. This creates an opportunity for more agile banks to better align with modern business models and growth ambitions.

For businesses navigating these shifts, exploring more adaptive approaches to  business banking may offer a more effective path forward.

A New Era of Financing: What Businesses Need

To unlock the full potential of SMEs and mid-market corporates, financial institutions must evolve their approach.

1. Data-Driven and Inclusive Credit Scoring

Using alternative data such as cash flow trends, transaction histories, supply chain activity, and sector benchmarks allows for more accurate risk assessment.

This approach expands access to credit for businesses that may not meet traditional lending criteria but demonstrate strong operational performance.

2. Integrated Business and Personal Banking

Many owner-managed businesses operate with overlapping personal and business finances. Banks that recognise this dynamic can provide more holistic financial solutions, improving liquidity management and enabling more flexible funding structures.

Explore integrated financial solutions across personal banking and business banking.

3. Digitised and Fast-Track Credit Processes

Technology-driven credit assessment and approval processes reduce friction and improve transparency. Digitisation enables faster decision-making, allowing businesses to respond quickly to opportunities and manage time-sensitive transactions more effectively.

4. Broader Use of Trade and Supply Chain Finance

Businesses operating in import, distribution, and manufacturing sectors require funding aligned with their working capital cycles.

Solutions such as:

• Letters of credit,
• Invoice discounting, and
• Structured trade finance

provide liquidity that supports sustainable growth and expansion.

Learn more about trade and working capital solutions.

How Access Bank Is Positioning Itself Differently

As a growing player in South Africa’s commercial and corporate banking landscape, Access Bank South Africa is focused on removing barriers that limit business potential.

We achieve this through:

• Flexible credit frameworks that extend beyond traditional collateral models.
• Faster turnaround times, supported by efficient internal processes.
• Trade finance and supply chain solutions aligned to sector-specific needs.
• Relationship-led engagement with decision-makers close to clients.
• Partnership-driven growth models, including equity participation, where appropriate.

Our focus is simple. To be a bank that listens, adapts, and delivers where it matters most.

Connect with our commercial banking team to explore tailored solutions.

Looking Ahead: Building a More Inclusive Financial Ecosystem

South Africa’s economic recovery will be shaped by the growth and resilience of its SMEs and mid-corporates. By adopting more inclusive financing models, leveraging data intelligently, and improving responsiveness, the banking sector can unlock:

• Increased job creation
• Greater business competitiveness
• Stronger participation in regional and global markets
• Long-term economic transformation

However, the macroeconomic outlook remains uncertain. Elevated oil and logistics costs, alongside ongoing global instability, are expected to shape SME financing needs for the remainder of 2026. Updated IMF projections point to higher inflation and slower global growth if current tensions persist, placing continued pressure on cash flow and access to capital.

Access Bank South Africa is committed to playing a meaningful role in this journey by supporting businesses with the tools, capital, and partnerships they need to succeed.