SME access to finance conditions

2018 SAFE results – EU

Evolution of access to finance as the most important problem for SMEs

Access to finance is the most important concern for 7% of the EU SMEs. It went down from 16% in 2009
through 14% in 2013. In general, SMEs in the European Union in 2018 reported as their three most
important issues: availability of skilled staff or experienced managers, finding customers and regulation (for
example European and national laws, industrial regulations).
25% 25%
23%
20%
17% EU
15% 15%
13%
10% 2 1
8% 7% Eurozone
5% 3
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 customers staff regulation
Top 3 current issues
Access to finance as the most important issue for SMEs in 2018, in different countries:
20%

15%

10%

5%

0%

EL CY LT HR IT IE LV DK BE FR PL MT SE PT RO EU NL ES HU SI DE UK CZ BG AT EE LU FI SK
-5%

What are the relevant sources of financing for SMEs in the European Union?
In the European Union, the SMEs who were asked about financing they used in the past or were
considering in the future reported that the three most important sources of financing are credit lines
(relevant for 52% of SMEs), leasing (47%) and bank loans (47%). Equity financing is relevant for 12% of the
EU SMEs. In the past 6 months they most often used credit lines (35%).
52% .
47% 47%

32% 33% relevant

26%
20%
12% 35% recently
24%
15% 18% 17% used
8% 8%
2%
Equity capital Other loans Internal funds Grants Trade credit Bank loans Leasing Credit lines
 Bank loans – SMEs' application and outcome
Bank loans remain the relevant form of external financing for 47% of the EU SMEs. Between April and
September 2018, 25% of SMEs in the European Union actually applied for a bank loan. 5% did not apply
because of fear of rejection.
35%
30% 2018
26% 36% 34%
25% 25%
20% 28% 26%
25%
15% 20% 22%
10% 16%
applied
5%
0% -5% -4% -4% -4% -4% -4% -6% -4%
-5% -5% -5% discouraged
-10%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

In the European Union, out of those SMEs who applied, 5% of bank loan applications were rejected. In
addition to the problem of loan applications being rejected, 11% of companies who successfully applied
received less than they applied for and 1% reported that they declined the loan offer from the bank
because they found the cost unacceptable. It means that, in total, 18% of the EU SMEs did not manage to
get the full bank loan they had planned for during 2018. Back in 2009, the rejection rate in the European
Union was 13%, with 34% not getting the fully planned financing.

40%
34% . 2018
35%
30% 27%
16%
received
25%
part 20% 22%
20% 17% 18% 18% 17% 16% 5%
cost too 20% 12%
15% 11% 13%
10% 11% 11% high 11% 11% 11%
13% 6% 8%
5% rejected 12%
5% ​ 5% 5% 4% 4% 6% 4% 7% 2%
0%
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ *

What did the EU SMEs use the financing for?

In the European Union, the financing was used for fixed investments by 41% of SMEs, while for inventory &
working capital by 37%. 20% of SMEs used it for developing new products and 22% for hiring & training
employees. 14% refinanced their obligations, while 9% financed other purposes.

37% 20% 22%

14% 9%
41%

The European Union is making it easier for SMEs to access finance

Explore EU-supported financing possibilities in your country 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 2018),
published in November 2018 at: http://ec.europa.eu/growth/safe