Access to bank financing for companies 2022Q4
Published on 7 February 2023
Credit demands and supply rates remained stable at a high level
The share of companies having applied for new loans remained stable in Q4, with a slight increase for investment loans requested by MTEs. After a decrease in Q3, the supply rate for cash credits increased over Q4, and remained globally constant for investment loans. Once again, a larger proportion of companies reported an increase in the cost of credit compared to previous quarters.
The Banque de France carries out a quarterly survey on the access to bank financing of companies. Around 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). N.B.: 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 investment loans
Requests for new investment loans (see graph 1 above) remained stable during Q4 2022 for VSEs, with 6% of them having asked for a loan, and increased by 1 point for SMEs to 21% and by 3 points to 29% for MTEs. These requests remain well served: 90% of VSEs, 96% of SMEs and 98% of MTEs having requested a loan obtained it fully or at more than 75% (see graph 2).
New cash credits
During Q4 2022, requests for new cash credits remained stable for all three categories of companies (see graph 3): 4% of VSEs, 6% of SMEs and 8% of MTEs requested cash credits in the last three months. After a decrease in the supply rate for these types of loans in Q3 2022 (see graph 4), it rose by 5 points for VSEs (78% of them have obtained their loan in full or at more than 75%) and by 9 points for MTEs (94%). The supply rate remained stable for SMEs, with 83% of them having obtained all or more than 75% of their loans.
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.
During Q4, requests for new credit lines increased slightly, by 2 points for both SMEs and MTEs: 36% of SMEs and 49% of MTEs made a request. These requests remained largely satisfied (fully or more than 75%), in 95% of cases for SMEs and MTEs. 53% of SMEs drew on their credit lines this quarter, 2 points more than during the previous quarter, whereas 63% of MTEs drew on their credit lines, 3 points more than over Q3 2022.
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 fell by 7 points for VSEs, with 83% having obtained their loan in full or at least at 75%. The supply rate for this type of loan remained high at 92% for SMEs and decreased by 2 points, at 88% for MTEs.
3- Evolution of the cost of credit
This quarter, the proportion of companies reporting an increase in the overall cost of credit increased again. 47% of SMEs and 65% of MTEs report an increase in the cost of credit. At the same time, the proportion of companies reporting a decrease in the cost of credit is less than 2% for both SMEs and MTEs.
These figures can be paralleled with the rise in business interest rates observed since March 2022.
4 - Self-censorship
Self-censorship refers to a situation where a company does not apply for new bank credit because it anticipates that the banks will refuse. 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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