P2P lending: A case for borrowing to grow

SMALL and medium-sized enterprises (SMEs) are important to the economy. In Singapore, SMEs account for 69 per cent of employment and 49 per cent of the economy.

Banks and bigger financial lenders became more conservative in lending in the aftermath of the 2008-9 global financial crisis.

SMEs do not have the capitalisation size to list on stock exchanges. Plus, they do not have the scale of rapid growth to pique the interest of venture capitalists.