Factors Affecting the Decision of SMEs to Borrow Capital from the Asia Commercial Joint Stock Bank - Can Tho City Branch

This study is to identify the factors affecting the decision of small and medium-sized enterprises (SMEs) to borrow capital from the Asia Commercial Joint Stock Bank (ACB) - Can Tho City Branch by analyzing data from 120 SMEs. Research methods of descriptive statistics, Cronbach’s Alpha test, exploratory factor analysis (EFA), and Binary Logistic regression analysis are used in this study. The study’s results show that the major factors affecting the decision of SMEs to borrow capital from the ACB - Can Tho City Branch are the loan-processing time, the attitude of credit officers, the suitability of the loan policy, the competitiveness of the interest rates and fees, the third-party referrals, the convenience of transaction, and the bank reputation. In which, the factor of the suitability of the loan policy has the strongest impact on SMEs’ decisions to borrow money. Based on the study’s results, some policy implications are proposed to help the ACB - Can Tho City Branch promote its credit services for SMEs.