The Adaptations of SMEs into Rating Process within the Scope of Basel Arrangements a Study in the city of Corum

Abstract

SMEs operate in certain hardships when the developments in financial markets are taken into account. The primary of these hardships is the difficulty in reaching low-cost finance facilities which are crucial for competing and growing. When it comes to today, the most important developments affecting the SMEs in terms of finance are Basel arrangements. From now on, financial institutions will take the rating notes of SMEs into consideration while giving credits to them. Financial resources will be provided for SMEs in accordance with their rating, and therefore competition advantage and disadvantages of SMEs will be ensued. A hesitation about the orientation of SMEs to the financing technique which is brought by Basel arrangements occurred and thus a study was conducted relating to the matter in the city of Corum. When the results of the study were analysed, it was realised that the SMEs operating in Corum were not sufficiently informed about the rating system brought about Basel arrangements and also the ones who were knowledgeable about these arrangements did not demand rating due to the cost issues of this system. The first and foremost reason of adaptation problems into Basel process was the fact that the SMEs were run by the proprietors themselves not the professional managers, and there were not finance managers in those SMEs.