Exploring the influence of profitability analysis on SME financing: A conceptual view

By allocating earnings and expenditures to each client independently, customer profitability analysis is a management accounting credit underwriting tool that enables businesses lenders assess the of individual customers or segments customers. Small medium-sized (SMEs) constitute backbone most economies key driver economic expansion. This conceptual study surveys literature on subject in order make assumptions might be tested subsequent research role cost-benefit raising corporate performance. accomplished by referencing viewpoints financing small as well fundamentals strategic accounting. The financial services sector, informal formal sectors economy every nation, would benefit greatly from an investigation into this issue. originality its contribution advancement conceptual, methodological, theoretical justification for effects funding enterprises. will support discussion present literature.