Banque de France quarterly survey (Q4 2019) on business financing

The Banque de France has just published its quarterly report (Q4, 2019) on corporate access to bank credit. Despite the economic difficulties encountered in the 4th quarter, the demand for […]

The Banque de France has just published its quarterly report (Q4, 2019) on corporate access to bank credit.

Despite the economic difficulties encountered in the 4th quarter, the demand for new cash loans from SMEs increased slightly
while that relating to very small businesses remains stable. Demand for new investment loans is increasing for both market segments.

Banks still seem ready to support businesses, with the Banque de France reporting agreement rates varying from 89% (for cash loans) to 97% (for investment loans) for SMEs, rates which fall respectively 71% and 88% for very small businesses.

Over the year, we can therefore observe a certain stability both in terms of requests and the rate of agreement of banks to requests from SMEs and very small businesses.

Note that only 3% of SMEs report an increase in the overall cost of funding obtained, up from the previous quarter.

On the ETI side, the demand for new cash loans is also increasing with an agreement rate of around 94%. The demand for investment loans remains unchanged with a rate of obtaining which remains high at 98%. Note that mid-caps have access to the private placement market, the activity of which is not mentioned by the Banque de France.