What are the sources of financing? bank loans and credit lines remain most relevant for SMEs, equity less so. Rejection
SMEs: the road to finance What are the sources of financing? bank loans and credit lines remain most relevant for SMEs, equity less so
Equity
Trade credit
Credit line
Bank loans
47%
36%
…
14%
Leasing
55%
50%
What are the most important problems for SMEs? access to finance is the least pressing one…
…but the situation differs between countries
customers access to finance
Estonia
10%
staff
5%
Cyprus
6%
Greece
25%
30%
competition
25% 18%
Luxembourg
14% SMEs reporting access to finance as most the important issue
Bank loan obtained
Why are bank loans not relevant for some SMEs ?
78% SMEs received all or part of the requested loan
Interest rate is too high
Full amount
67%
9%
Part of it
12%
Insufficient collateral
No loans available
4%
4%
Too much paperwork
Not needed
3%
71%
Rejection rate SMEs are reporting fewer loan requests being turned down 2009
STOP
15%
loan refusals decrease with the size of firm micro
2014
2015
12%
STOP
small medium
12%
8%
8%
4%
Large
1%
What is the financing used for? Inventory & working capital
Developing new products
34%
14%
Fixed investment
Hiring & training employees
13%
Refinancing obligations
12%
Other
12%
36%
General situation of SMEs (net result reported)
improved financial situation and hiring staff Turnover
+20%
increased investment in assets
Number of employees
Profit
Fixed investments
Inventories & working capital
+11%
+4%
+15%
+6%
cost of financing DOWN only labour and other costs UP Interest expenses
-1%
Other cost
Labour cost
+34%
+43%
The European Union is making it easier for SMEs to access finance explore financing possibilities in your country, supported by the EU at: http://access2finance.eu The results presented are for SMEs in the EU, based on the "Survey on the access to finance of enterprises (SAFE)", where companies were asked about the situation in the past 6 months (April – September 2015), published in December 2015 at: http://ec.europa.eu/growth/access-to-finance/data-surveys/safe