Credit to SMEs falls up to 4% after the covid in the midst of inflation


Financing is getting complicated for small and medium-sized companies and the problem is not new, but they have been noticing a gradual closing of the credit faucet since the covid pandemic. Specific, small companies (which are the ones that make up the majority of our productive fabric) are capturing 3% less credit volume compared to the years prior to the health crisis (2017-2019), while the average loan stands at 33,600 euros, compared to the more than 34,600 euros raised on average before the virus spread.

According to a report published this Wednesday by Cepyme, in the case of medium-sized companies, new loans are 4% lower than those signed before the pandemicand all this, the organization points out, despite the fact that since last year there have been “significant” increases in activity due to the end of the pandemic crisis and the lifting of the restrictions set to deal with it.

In addition, the organization led by Gerardo Cuerva has denounced that SMEs only managed to obtain credit for 16% of their sales in the third quarter, while Before the crisis, an average of 22.4% of its sales were raised from financing. “Inflation means that the same amount of euros granted is used to finance a lower proportion of sales and this affects the need for liquidity in companies,” warned the employers of SMEs.

Between the months of July and September, the total volume of bank credit to non-financial companies stood at 567,200 million euros. “In a context of high inflation, in which the level of activity is marked by the narrowing of margins, the fall in business profitability and the economic slowdown, the slow evolution of credit responds to the fact that the company is suffering from a credit restriction” , emphasizes Cepyme.

The business organization has warned that the credit restriction and the worsening of the conditions of the granted financing “will worsen” in the fourth quarter of this year due to the uncertainty and the worsening of the economic perspectives. The increase in interest rates that the European Central Bank has been carrying out since last July to control the rising cost of living in the region will also have an effect on this aspect.

For all these reasons, the employers’ association chaired by Cuerva has urged the Executive of Pedro Sánchez to make more flexible and facilitate access to the first tranche of 5,000 million in ICO credits approved in March to help companies in the face of cost increases, as well as to implement a comprehensive support plan for the company to alleviate liquidity problems.


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