Access to bank financing for companies 2021Q3
Mise en ligne le 18 Novembre 2021
Slight decrease in demands for cash credits and large supply rates for all credit types
While demands for new cash credits kept on gradually decreasing towards levels below pre-crisis standards, requests for new investment loans remained at a low level akin to that of the preceding quarter. Both types of demands remained well served with high supply rates.
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 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). 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 cash credits
After peaking at the height of the health crisis in Q2 2020, requests for new cash flow loans kept on declining: 4% of VSEs, 5% of SMEs, as well as 6% of ETIs, have made a request in the last three months. The supply rate for these new loans (all or more than 75%) remains high at 76% for VSEs, well above pre-crisis levels, and at 86% for SMEs. The supply rate for MTEs is to be interpreted with caution due to the small sample size.
New investment loans
Demands for new investment loans remained below the pre-crisis level: 7% of VSEs, while 17% of SMEs and 23% of MTEs have asked for a loan. Against these low levels for demands, supply rates for investment loans remained high: 88% of VSEs, 96% of SMEs, and 96% of MTEs were fully or almost fully granted their demand.
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.
The share of SMEs that have applied for credit lines in the last 12 months decreased again and stood at 30%. Of the MTEs, 40% have made requests. These requests were still largely satisfied (in full or at more than 75%), in 96% of cases for both SMEs and MTEs.
45% of SMEs drew on credit lines this quarter. Among MTEs 49% drew on their credit lines.
45% of SMEs drew on credit lines this quarter. Among MTEs 49% drew on their credit lines.
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 entirely or more than 75%) rose slightly to 90% of VSEs and to 91% for MTEs after 87% in Q2. 92% of SMEs were granted their demands for equipment credit.
3- Evolution of the cost of credit
As in the previous quarters, the share of SMEs and MTEs reporting a decrease in the cost of credit was larger than that of SMEs and MTEs reporting an increase.
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Mise à jour le 17 Novembre 2021