Access to bank financing for companies 2021Q4
Published on 1 February 2022
Demands for investment credits on the rise
Demands for new cash credits levelled off at a low level, whereas requests for new investment loans kept on increasing, reaching pre-crisis like figures. Both these demands remained well-served, with supply rates on the rise for cash credits.
The Banque de France carries out a quarterly survey on the access to bank financing of companies. 4,000 small and medium-sized companies (SMEs) and 500 mid-tier companies (MTEs) have answered; as well as 2,500 very small companies (VSEs) thanks to a partnership with the Fédération des Centres de Gestion Agréés (small firms authorised management centers federation). NB: bank credits alone are examined in this survey; MTEs have access to private financing options, which provides them with financing solutions not covered by this survey.
Data not seasonally adjusted, in %; excluding use of previously granted credit lines
Scope: companies with autonomy to decide on credit applications: VSE = 0 - 9 employees; SME = 10 - 249 employees; MTE = 250 - 4999 employees
Scope: companies with autonomy to decide on credit applications: VSE = 0 - 9 employees; SME = 10 - 249 employees; MTE = 250 - 4999 employees
New cash credits
Demands for new cash credits stabilized at a low level: 4% of VSEs, 5% of SMEs, have requested this type of credit over the last three months. 7% of MTEs, asked for a loan, one percentage point higher compared to last quarter. Supply rates for these demands rose for every company sizes: 79% of VSEs and 90% of SMEs obtained there loan fully or almost fully. Figures for MTEs are to interpret with caution considering the small sample size in the survey.
New investment loans
Demands for new investment loans kept increasing and reached pre-crisis levels, with 8% of VSEs, 18% of SMEs and 25% of MTEs having requested a loan. Supply rates for investment loans remained high: 87% of VSEs, 96% of SMEs, and 98% of MTEs were fully or almost fully granted their demand.
Additional information
1 - Credit lines
For operating needs, SMEs and MTEs can apply (usually at the beginning of the year) for credit lines giving them drawing rights over the year.
The share of SMEs that have applied for credit lines in the last 12 months decreased by one percentage point and stood at 29%. Among MTEs, 38% have made requests. These requests were still largely satisfied (fully or by more than 75%), in 97% of cases for SMEs and 99% of MTEs'demands.
45% of SMEs drew on credit lines this quarter. Among MTEs, 50% drew on their credit lines.
45% of SMEs drew on credit lines this quarter. Among MTEs, 50% drew on their credit lines.
2- Supply rate for equipment loans
Among investment loans, equipment loans are intended to finance intangible or tangible assets, excluding real estate.
The supply rate for equipment loans (entirely or more than 75%) ebbed slightly to 88% of VSEs and to 91% for MTEs.Supply rates for MTEs waned more dramatically, with 83% of them having been granted their demands for equipment credit, against 91% during the preceding quarter.
3- Evolution of the cost of credit
As in the previous quarters, the share of SMEs and MTEs reporting a decrease in the cost of credit was larger than that of SMEs and MTEs reporting an increase.
4. Self-censorship
Companies' expectations for banks turn down stayed on the fringe; the proportion of companies declaring self-censorship behaviors remained below the 2% threshold.
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