OVER 70% of micro, small and medium enterprise (MSMEs) were expected to face cash flow issues this year, with those in wholesale and trading (77.5%) and services (65.5%) sectors having the most need, according to a survey by a banking group.

Business owners were expecting to bridge the cash flow gap with bank loans (49.7%), investor funding (22.0%) and peer-to-peer (P2P) financing solutions (13.2%), according to the survey.

Although banks were still MSMEs’ number one option, it noted that only 20.8% of respondents were successful in accessing business financing within the last six months.

The report by Alliance Bank Malaysia Bhd also noted financing support was still the most in-demand (34.1%) product MSMEs require from banks. — TMR