economic crisis
It is becoming increasingly difficult for small and medium-sized businesses to get bank loans
In the economic downturn, medium-sized companies are increasingly having problems obtaining financing from banks. A negative record was reached at the end of 2024, new figures show.
In the midst of the economic crisis, medium-sized companies in Germany are finding it increasingly difficult to obtain bank loans. In the fourth quarter, almost a third of medium-sized companies (32 percent) that were interested in taking out loans complained about restrictive behavior on the part of banks, according to the development bank KfW. This is a high since the introduction of a new survey methodology in 2017.
The banks therefore set exceptionally strict standards for companies in the wholesale, industrial and retail sectors. “The companies in these areas are suffering from a poor business situation and weak sales expectations,” said Jenny Körner, financial market expert at KfW Research.
Companies shy away from long-term contracts
Every quarter, KfW analyzes data from the economic surveys conducted by the Munich Ifo Institute, differentiated by size class and economic sector. Around 9,000 companies are surveyed every month, including around 7,500 medium-sized companies.
According to the KfW, the falling interest rates have increased the interest of medium-sized companies in loans somewhat. However, demand in the fourth quarter remained well below the long-term average. Only a good 21 percent of medium-sized companies wanted to take out loans. In addition, companies shied away from long-term loan agreements because of the economic crisis and political uncertainty.
dpa
Source: Stern
