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).
Enlarged access to credit, especially for VSEs
- Over the fourth quarter of 2016, demand for new credits from SMEs and VSEs was nearly stable, for cash credits as well as for investment loans.
For SMEs as well as for VSEs, in case of no request, the main explanation was the lack of credit needs, irrespective of the type of loan. Anticipating a bank refusal is rare: less than 2% of firms censor themselves, whatever their sizes (VSEs, SMEs or MTEs).
- Cash credit supply was nearly stable for SMEs: 84% of SMEs' requests were fully or substantially (over 75% of their demand) granted, versus 83% over the third quarter. Access to investment loans increased somewhat: 95% of SMEs were fully or substantially granted the loans they requested (versus 93% the previous quarter). More specifically for equipment loans, access was also very wide (90%).
- Access to cash credits for VSEs eased up to 70% (versus 68% in the third quarter). Access to investment loans also rose: 85% of VSEs were granted their request (fully of over 75% of the requested loans) compared to 82% during the previous quarter. Access for equipment loans was also easy: 86% of their requests were granted.
Financing requests and grants for SMEs and VSEs*
*in %; except for the use of credit lines earlier granted
Source: Banque de France (Directorate General of Statistics) and FCGA
Scope: Enterprises with real decisional autonomy regarding requests for credit; SMEs: 10 - 249 employees; VSEs: 0 - 9 employees
1- Small and medium-sized enterprises (SME: 10 - 249 employees)
provided by Banque de France
To meet their operational requirements, 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 increased (39%, versus 36% in the third quarter).
64% of SMEs mobilized credit lines, as many as during the previous quarter.
About new loans - excluding the use of existing credit lines - :
Demand for new cash credits was stable: 7% of SMEs requested a credit.
The cash credit supply was nearly stable: 84% of SMEs were fully or substantially granted, versus 83% over the previous quarter.
Demand for new investment loans remained unchanged: 23% of SMEs applied for a new request during this quarter.
Access to investment loans increased. 95% of SMEs were fully or substantially granted (versus 93% over the third quarter).
Concerning equipment loans, the granted proportion was also high: 90% of the requests were granted.
Bank financing conditions were conducive, about total cost of financing as well as additional guarantees.
2 - Very small enterprises (VSE: 0 - 9 employees)
provided by FCGA and Banque de France
- Demand for new financing from VSEs was quite stable, for cash credits (7% of VSEs versus 7% in the previous quarter) and for investment loans (12% versus 11%).
- Access to cash credit was increasingly easy: 70% of VSEs were fully or substantially granted, after 68% in Q3 and 64% in Q2.
- Access to investment loans also rose: 85% of VSEs were granted their request (fully of over 75% of the requested loans), versus 8%.
In particular, for equipment loans, 86% of VSEs reported their requests to be met fully or substantially.
3 - Mid-tier enterprises (MTE: 250 - 4 999 employees)
provided by Banque de France
- 52% of MTEs submitted requests for credit lines. 72% of those MTEs with granted credit lines drew them down.
- Demand for new cash credits was stable: 11% of MTEs requested their lenders. The credit supply rate increased: 94% were fully or substantially obtained (91% in the previous quarter).
- Demand for investment loans strengthened: 32% of MTEs requested financing, versus 27% over the third quarter. Almost all MTEs were fully or substantially granted. Concerning investment loans, 92% of MTEs were supplied.
- MTEs access to private debt issuances should also be considered, in order to put into perspective the data issued for this category of firms.
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Access to bank financing for companies
Published on Tuesday, January 17, 2017