Modeling SMEs Credit Default Risk: The Case of Saudi Arabia

This study assesses the credit risk of small and medium-sized enterprises (SMEs) to minimize unexpected events. We construct a hybrid statistical model based on factor analysis logistic regression predict enterprise default loans determine factors predicting SMEs default. assess listed Saudi stock market. The results indicate that acid-test ratios are most influential in risk. Therefore, designed can be used by financial institutions during decision-making process granting SMEs. sheds light challenging access bank credits due lack transparency