Factors Influencing Access to Finance Among Jordanian SMEs: Examining the Role of P2P Lending Fintech, Information Asymmetry, Transaction Cost, and Financial Literacy

Ammar Fakhri Doumi (), Halima Begum (), Fakhri Bani Doumi () and A. S. A. Ferdous Alam ()
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Ammar Fakhri Doumi: Universiti Utara Malaysia, UUM
Halima Begum: Universiti Utara Malaysia, UUM
Fakhri Bani Doumi: Sharjah Police Science Academy: Sharjah
A. S. A. Ferdous Alam: Universiti Utara Malaysia, UUM

Journal of the Knowledge Economy, 2025, vol. 16, issue 5, No 1, 15579-15606

Abstract: Abstract The aim of this research is to examine the correlation between Peer-to-Peer (P2P) lending financial technology (Fintech), information asymmetry, transaction cost, financial literacy, and access to finance among Small and Medium Enterprises (SMEs) in Jordan. The study used Partial Least Squares-Structural Equation Modelling (PLS-SEM) to analyze data collected from a sample of 335 SMEs in Jordan. The study’s findings indicate that information asymmetry and transaction cost have a notable and adverse impact on access to finance. On the other hand, P2P lending Fintech has no direct effect on access to finance. Additionally, financial literacy significantly moderates the relationship between P2P lending and access to finance among SMEs. In conclusion, P2P lending Fintech has been proven to help Jordanian SMEs’ access financing when financial literacy interacts as a moderator. This study contributes to the extant literature on how financial literacy moderates the relationship between P2P lending and SMEs’ access to finance. Finally, the results of this research benefit SMEs’ owners/managers by providing them with empirically validated insights into the factors that affect their ability to access financing. Additional research should investigate many categories of Fintech tools, such as crowdfunding, blockchain, and other related technologies. Furthermore, it is necessary to examine additional factors that impact the ability to get financial resources, such as collateral and management risk, and it is important to assess the influence of financial management regulations on these factors.

Keywords: Access to finance; SMEs; P2P lending; Information asymmetry; Transaction cost; Financial literacy (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02434-6

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