Financing of entreprises - 2024-11

Published on the 14th of January 2025

The cost of new financing for NFCs falls in November and returns to its spring 2023 level
  • In November 2024, the cost of new financing for non-financial companies (NFCs) fell by 18 basis points, falling below 4% for the first time since April 2023 (3.88% after 4.06% in October). This decline was due to the lower cost of both bank loans (4.17% after 4.34%) and debt securities (3.32% after 3.51%).
  • Year-on-year growth in new financing granted to NFCs continued to fall gradually, to +1.4% in November (after +1.8% in October), due in particular to the deleveraging of some large companies. It remained slightly more dynamic for bank credit (+1.7% after +2.1%) than for debt securities (+0.9%, after +1.2%). It continued to be driven by investment credit (+3.0% after +3.2%), in particular equipment credit, while outstanding cash loans was down again (-3.6% year-on-year after -2.9%).
1 - Overview of NFCs : Outstanding amounts and flows in € Bn, annual growth rate and cost in %
(non-seasonally adjusted)
Nov-2024 Annual growth rate Cost (annual Interest rate)
Outstanding
amounts
Transactions
(cumulative over 12 month)
New business
(cumulative over 12 month)
Sep- 2024 Oct- 2024 Nov- 2024 Sep- 2024 Oct- 2024 Nov- 2024
NFC's global financing 2,083.1 29.0 677.3 1.8 1.8 1.4 4.06 4.06 3.88
Loans 1,369.4 22.3 319.3 1.7 2.1 1.7 4.43 4.34 4.17
Investment 984.1 3.0 3.2 3.0
equipment 619.4 2.9 3.3 3.2
real-estate 364.8 3.3 3.2 2.8
Treasury 307.8 -3.7 -2.9 -3.6
Other lending 77.5 8.5 9.2 6.7
Loans up to €1 million 113.8 4.38 4.38 4.28
Loans over €1 million 205.5 4.46 4.33 4.10
Securities other than shares 713.7 6.6 358.1 1.9 1.2 0.9 3.33 3.51 3.32
Monthly changes in outstanding loans by purpose (seasonally adjusted data in € Bn)
Cost (all maturities combined) by financing sources (in %)
2- Loans to firms by size
  • In November 2024, the growth rate of outstanding loans fell for all company sizes. It decreased from +1.1% to +1.0% for SMEs and unsoecified sizes, from +1.3% to +0.9% for ISEs, and from +1.1% to -0.2% for large companies.
  • The average cost of new bank loans continued to fall, regardless of company category. In the case of the largest companies, it has fallen below the 4.00% threshold.

Outstanding
amounts (in Bn €)
Annual growth rate in % Cost in %
(annual interest rate)
Nov- 2024 Sep- 2024 Oct- 2024 Nov- 2024 Sep- 2024 Oct- 2024 Nov- 2024
All firms 1,369.4 1.7 2.1 1.7 4.43 4.34 4.17
Of which:
- SME and unspecified size 565.0 1.1 1.1 1.0 4.46 4.31 4.15
- ISE 389.6 1.4 1.3 0.9 4.47 4.45 4.30
- Large firms 203.7 0.3 1.1 -0.2 4.27 4.25 3.98

Note on methodology:

The scope of SME credit outstandings includes companies of indeterminate size (e.g., companies created during the year, etc.), which may be reclassified in another category as and when available information on sales, workforce, balance sheet size or financial links is updated.

Total loans to all firms is measured on the basis of data from bank balance sheets, which provide "macro" information, i.e., exhaustive information (all companies based on loans to the first euro), with certain breakdowns according to the nature of the loan. At the same time, on a regulatory basis, credit institutions and investment firms must declare by borrower ("micro" information) to the Central Risk Service of the Banque de France (SCR) the loans granted when they exceed €25,000. This collection is gradually being abandoned in favor of the AnaCredit collection, except for small banks which will not be subject to this declaration, in order to respect the "proportionality" between the economic importance of the bank and the constraints of its declaration obligations. This "micro" collection, which is fairly broad but not exhaustive, offers the advantage of being able to adopt the concepts of enterprise and category of enterprise defined by decree no. 2008-1354 on the criteria for determining the category of enterprise for the purposes of statistical and economic analysis (decree implementing article 51 of the law on the modernization of the economy - LME). The residual difference between the total by firm size and the total firm is essentially explained by these differences in scope and by legal units that cannot be assigned to a size category according to the criteria of the LME ("SCI and miscellaneous").
Interest rates (all maturities combined) by enterprise size (in %)
Outstanding amounts of loans to resident enterprises by size (in € Bn)
3 - Outstanding amounts by sector ** (stocks in € Bn, annual growth rate in %)
  • Growth in outstanding loans continued to vary widely from one economic sector to another. Growth remained strong in the business consultancy and services sector (+11.4%), real estate (+3.4%), agriculture, forestry and fishing (+3.0%) and transport and warehousing (+1.1%). On the other hand, outstanding loans continued to contract for industrial activities (-4.4%), trade (-3.4%), the accommodation and catering sector (-2.8%) and information and communication (-2.6%).
  • Compared with its November 2023 level, outstanding construction credit contracted (-2.6%), but grew in the real estate development sub-sector (+5.4%).

Drawn credits Drawn and undrawn credits
Outstanding amounts Annual growth rate in % Outstanding amounts Annual growth rate in %
Nov- 2024 Oct- 2024 Nov- 2024 Nov- 2024 Oct- 2024 Nov- 2024
Agriculture, forestry and fishing (AZ) 67.3 3.1 3.0 75.5 1.4 1.4
Industry (BE) 165.3 -3.3 -4.4 263.5 0.7 -1.8
- inc. Manufacturing (C) 115.5 -2.8 -4.0 184.6 1.3 -1.1
Construction (FZ) 70.1 -1.8 -2.6 104.8 -1.1 -2.3
Wholesale and retail trade; repair of motor vehicles and motorcycles (G) 183.5 -3.8 -3.4 251.6 -2.2 -3.2
Transportation and storage (H) 64.3 1.0 1.1 81.5 1.9 1.1
Accommodation and food service activities (I) 51.8 -2.2 -2.8 57.3 -2.3 -3.1
Information and communication (JZ) 33.5 1.0 -2.6 55.8 -1.2 -1.0
Real estate activities (LZ) (*) 549.8 3.6 3.4 602.8 3.4 3.2
Advisory and Business support activities (MN) 105.1 10.8 11.4 131.8 11.1 11.3

Education, human health and social work services, Arts, entertainment and recreation, Other service activities (PS)
62.2 -0.5 -3.4 69.6 -1.5 -3.9
Holdings 18.5 16.5 14.6 22.8 21.0 19.4
(*) including non-trading real estate companies
(**)For the difference between total firms and total, see the method note
More information on: time series, calendar, methodology

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STAT INFO - November 2024
Financing of entreprises
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Updated on the 13th of January 2025