Access to bank financing for companies 2023Q2
Published on 1 August 2023
Companies report stable and well-served credit demands
- The proportion of companies applying for new loans was stable in Q2 2023, with a slight decrease for investment loans applied for by MTEs.
- Obtention rate remained high for investment loans. It rose for cash credits to VSEs.
- The proportion of companies reporting an increase in the cost of credit continues to rise, but to a lesser extent than in 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 1,500 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 investment loans
- The proportion of companies having requested new credits (see graph 1 in the above figure) remained stable in Q2 2023 for VSEs, rising slightly for SMEs and falling for MTEs to 24% after 30% in Q1 2023.
- Obtention rates for these loan applications remained very high: 87% of VSEs, 97% of SMEs and 99% of MTEs that applied for a loan obtained all or more than 75% of it (see graph 2).
New cash credits
- The proportion of companies having requested new credits (see graph 3) remained stable at a low level for VSEs, SMEs and MTEs.
- Obtention rates for this type of credits went down for SMEs to 83% (versus 86% in Q1), and to a greater extent for MTEs to 85% (versus 93% in Q1). They were, however, rising to 75% for VSEs, who benefit from a higher average approval rate than before the Covid crisis.
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.
- Requests rose by one point for both SMEs and MTEs: 34% of SMEs and 46% of MTEs have made a request in the last 12 months.
- These requests were still largely satisfied (fully or more than 75%), in 95% of cases for SMEs and MTEs.
- 53% of SMEs drew on credit lines this quarter, down 1 point compared to the previous quarter. 62% of MTEs drew on their credit lines, also down by 1 point compared to Q1 2023.
2- Supply rate for equipment loans
Among investment loans, equipment loans are intended to finance intangible or tangible assets, excluding real estate.
- The take-up rate for equipment loans remained high for all company sized: 89% of VSEs, 94% of SMEs and 96% of MTEs who applied for this type of loan obtained it (fully or at more than 75%).
3- Evolution of the cost of credit
- In Q2 2023, the proportion of companies reporting an increase in the overall cost of credit compared with their previous credit applications continued to rise, albeit to a lesser extent than in previous quarters.
- 63% of SMEs and 73% of SMBs reported an increase in the cost of credit obtained compared to their previous applications.
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