The Commerce Ministry is pushing small and medium-sized enterprises (SMEs) to take advantage of the Secured Transaction Act by using assets with economic value such as machinery, high-value trees and intellectual property as collateral to secure loans.
Following the opening of the Business Collateral Fair, Deputy Commerce Minister Napintorn Srisunpang said the event aims to support and provide opportunities for SMEs to access funding by harnessing the benefits of the 2016 Secured Transactions Act.
Under the law, a business, a right of claim (bank account, lease rights, employment contract, sales contract), moveable property used in operating businesses such as machinery, inventories or raw materials, immovable property (land), intellectual property, high-value trees (perennial trees) and any other assets as specified in the ministerial regulation can be used as collateral.
Participating financial institutions offering loans for both existing and new businesses with special interest rates include Krungthai Bank, Bangkok Bank, Bank of Ayudhya (Krungsri), Thai Credit Bank, Thai Credit Guarantee Corporation, the Bank for Agriculture and Agricultural Cooperatives, the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) and Export-Import Bank of Thailand (Exim Bank).
The Thai Valuers Association will appraise the value of assets that business operators use as collateral for loans.
In related news, Mr Napintorn witnessed the signing of a memorandum of understanding between the Business Development Department, the Intellectual Property Department, the Marine Department, the Industrial Works Department and the Land Department to provide support for small businesses in the registration of security, including the amendment and cancellation of registration records as well as making those records public.
The ministry has pledged to implement seven core policies to boost the economy. These include reducing expenses, increasing income and expanding opportunities for SMEs, with the aim of increasing their GDP contribution from 35.2% to 40% by 2027.
"The act will help boost Thailand's economic growth as it provides business operators, especially SMEs, with better access to funding sources, helping to increase income for SMEs and their GDP contribution," Mr Napintorn said.
From July 4, 2016 to March 24, 2024, the number of registered securities tallied 830,288 with a value of 16.6 trillion baht, up from 36,165 and 128 billion baht in July 2016, according to the Business Development Department.