The credit assessment of micro-enterprises : Credit assessments factors and sanction of the abolition audit requirement

Introduction: 1 November 2010 came the amendment about the audit requirement into force. The amendment concerned only micro-enterprises. The most common form offinancing for micro-enterprises are bank loans, therefore the banks play a major role in the business and wellness of micro-enterprises. Purpose: Purpose of this paper is to examine if the credit assessment has been affected by the removal of the audit requirement for micro-enterprises. Method: This study will be conducted by a qualitative study in the form of interviews. Five interviews were conducted, with four respondents from the large banks and one respondent from Almi Företagspartner. Conclusion: All respondents agreed that the audit is seen as a mark of quality, some lenders will continue to request it from the micro-enterprise while other lenders look at other factors such as ownership, relationship or business concept