Access to bank financing for companies 2020Q3
Published on 4 November 2020
Demands for new cash credits remained at high levels
- The share of Small and Medium-sized Enterprises (SMEs) requesting new cash credits withdrew to 17% of businesses after 42% in the preceding quarter (due to the implementation of the state guaranteed loans (PGE)), but was still almost three times higher than in Q3 2019; that of Very Small Enterprises (VSEs) also decreased while remaining high, at 14% of businesses after 28% in Q2 2020 and against 6% in Q3 2019. On the opposite, after two consecutive quarters of decline, the proportion of businesses demanding for new investment loans raised by 2 points for SMEs at 15% of businesses, and stabilized at 6% of businesses for VSEs.
- The supply rate of SMEs for cash credits decreased by 4 points compared to the preceding quarter but remained at a high level with 90% of granted credits, in connection with access to state guaranteed loans (PGE). The supply rate for investment loans slightly improved with 96% of SMEs that were fully of almost fully granted their credits, after 95% in Q2 2020. For equipment loans more specifically, the rate of access also increased by 1 point at 91%.
- As a result of the implementation of state guaranteed loans, the supply rate of VSEs for cash credits stayed very high and close to that of SMEs with 88% of granted requests after 90% in the preceding quarter. Access to investment loans improved this quarter, with 86% of VSEs that were fully or almost fully granted their credits after 84% in Q2 2020. Regarding equipment loans, the supply rate increased by 1 point this quarter to reach 84%.
Share of businesses that have requested and been granted new credits*
Cash credits
Investment loans
* Not seasonally adjusted data, in %; except for the use of credit lines earlier granted
Source : Banque de France (Statistics, Studies and International General Directorate ) and FCGA
Scope: Enterprises with real decisional autonomy regarding requests for credit; SMEs: 10 - 249 employees; VSEs: 0 - 9 employees
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 400 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).
Additional information
1 - Very small enterprises (VSE: 0 - 9 employees)
provided by FCGA and Banque de France
- The share of VSEs that have requested new financings decreased by 14 points this quarter for cash credits but remained very high with 14% of businesses that have applied for new cash credits against 6% in the same quarter last year. The demand rate for investment loans stabilized at 6% of VSEs.
- The supply rate for cash credits remained close to the all-time high observed in the preceding quarter (90%) with 88% of VSEs that were fully of very substantially granted their requests this quarter, namely a similar rate to that of SMEs (90% this quarter).
- The rate of access to investment loans increased by 2 points with 86% of granted requests (fully or over 75%). Concerning equipment loans specifically, the supply rate amounted to 84%, namely 1 point more than in the preceding quarter.
2- Small and medium-sized enterprises (SME: 10 - 249 employees)
provided by Banque de France
- SMEs can apply for credit lines that remain available over the year, most of the time at the beginning of the year, and/or for various types of cash facilities during the year. -> The proportion of SMEs applying for credit lines slightly increased and amounted to 38% after 37% in the preceding quarter. These requests were still widely satisfied, at 96%.
- Regarding new loans - excluding the use of available credit lines - : -> The proportion of SMEs that have applied for new cash credits decreased at 17% this quarter after 42% in Q2 2020 but was still almost three times higher than in the same quarter last year.
- 2% of SMEs reported a rise in the total cost of financing, one point less than in the last quarter.
-> 48% of SMEs mobilized credit lines this quarter, namely 6 points less than in Q2 2020.
The rate of access to cash credits for SMEs decreased by 4 points compared to the preceding quarter but still remained at a high level with 90% of requests that were fully or almost fully granted (this supply rate was of 87% in Q3 2019).
-> After two consecutive quarters of decline, the share of SMEs that have requested new investment loans increased by 2 points this quarter at 15% of businesses, namely 6 points less than in the same quarter last year.
The supply rate for investment loans slightly improved with 96% of SMEs' requests that were fully or very substantially granted, after 95% in Q2 2020. About equipment loans specifically, the rate of access also got better by 1 point at 91%.
3 - Mid-tier enterprises (MTE: 250 - 4 999 employees)
provided by Banque de France
- 47% of MTEs submitted requests for credit lines after 51% in Q2 2020. 56% of those MTEs whose requests were satisfied drew down available credit lines, against 65% in the last quarter.
- The share of MTEs that requested new cash credits decreased by 25 points at 15% of businesses that haved applied for such credits, namely still 6 points more than in the same quarter last year. The supply rate (fully or over 75% of the requested loans) increased by 1 point at 92%.
- The proportion of MTEs that applied for new investment loans increased by 3 points at 21% of businesses that requested such financings this quarter, a share that was still 9 points less to that measured in Q3 2019. The rate of access improved by 5 points with 99% of MTEs' requests that were fully or almost fully granted. Concerning equipment loans specifically, the supply rate also improved and reached 90%, after 89% in the previous quarter.
- Only bank financing is considered here. MTEs also access to financing through private debt issuance, which is not covered by this survey.
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