“Newcomer” Paradox: Years in business yet still struggling to access credit after corporate transformation

According to the General Statistics Office, Vietnam currently has over 5 million household businesses, contributing around 30% of GDP and providing employment for tens of millions of workers. Each year, tens of thousands of these businesses are converting to a corporate model, yet the majority become micro-enterprises with limited capital, incomplete accounting systems, and constrained collateral – all factors that make accessing bank credit a challenging task. 

Removing the “Seniority” barrier for new enterprises

One of the most common obstacles for newly established micro-SMEs is the requirement regarding operational tenure. In practice, many banks still require a business to have been active for 6–12 months to qualify for credit, even if the business owner has a stable track record from previous operations.

To address this paradox, SeABank has updated its business loan package, specifically designed for micro-enterprises and household businesses undergoing transformation. Under this scheme, businesses from 3 months of operation can be considered for credit, with loan limits and terms flexibly tailored to actual needs.

Specifically, for working capital needs, loan terms can extend up to 36 months, enabling businesses to proactively manage inventory, rotate capital, and stabilize cash flow. For loans aimed at investing in machinery, equipment, or expanding production facilities, terms can last up to 120 months. For loans to purchase or acquire real estate for business purposes, terms can extend up to 300 months, alleviating repayment pressure during the initial stages.

Supporting the Micro-enterprise ecosystem

A survey by the Vietnam Association of Small and Medium Enterprises shows that nearly 60% of businesses face difficulties accessing bank credit, particularly in the early stages of business model transition, mainly due to insufficient collateral, weak credit history, and complex loan documentation. To address these constraints, SeABank has customized a credit assessment process for this customer segment, ensuring simple and fast procedures that are closely aligned with the actual operations of SMEs.

Repayment methods are flexible with options to pay interest monthly or quarterly; principal repayment can be scheduled monthly, quarterly, semi-annually, or at the end of the term, depending on the business cycle of each industry.

In addition to procedural issues, collateral remains a major bottleneck for new businesses. SeABank has expanded the range of acceptable collateral under the SeAPro loan package. In addition to real estate, savings deposits, and valuable papers, the Bank also accepts vehicles such as passenger cars with up to 16 seats, trucks, and pickup trucks, which are commonly used in micro-SME operations.

This approach enables many businesses to make the most of their existing resources to access timely funding, rather than having to delay production or business plans due to a lack of traditional collateral.

According to SeABank representatives, designing “tailored” credit products for newly established businesses are designed not only to expand credit access but also to build a sustainable SME ecosystem, supporting the private sector – a key driver of economic growth.

In the context of the Government’s goal to strongly develop the SME sector, flexible financial solutions that are closely aligned with practical needs are expected to help remove capital bottlenecks, enabling business owners to confidently transform their business models and enhance competitiveness.