How financially distressed SMEs could be distinguished from the successful ones in Thailand's market

Many parties such as creditors, investors, auditors, financial institutions, employees, and customers are influenced by business failure both direct and indirect affects. When a business with financial problems is not able to pay its financial obligations, the business may be driven into the situation of becoming a non-performing loan business and, if the problems cannot be solved, the business may become bankrupt and be forced to close down. These business failures inevitably influence all businesses as a whole. In this study, the characteristics of the Thai financially distressed SMEs have been explored in order to understand the differences between them and of the non-financially distressed ones From the result, the changes over time as they proceed through a court process specifically on the matter of profitability was improved, and finally a discriminant financial distress prediction model specifically for Thai SMEs with overall accuracy 97.2% is developed to distinguish those likely to fail from those likely to succeed.