-pected to reduce agency costs, perceived credit risk and thus the request for personal collateral. Trustworthiness is associated … with three attributes of SME owner/managers’: ability, benevolence and integrity. We hypothe-sised that loan managers …’ assessment of the trustworthiness of owner/managers is negatively associated with the personal collateral demanded by banks …

stable finance. One efficient way to promote SME financing is through credit guarantee schemes, where the government … guarantees a portion (ratio) of a loan provided by a bank to an SME. This research provides a theoretical model and an empirical …

constraints, but it can also reduce lending standards if entrepreneurs substitute public sources of collateral for their own … entrepreneurs start to substitute public for private collateral, to co-funding entrepreneurial projects. The optimal level of credit …