Home Финансирование Increasing European SME Access to Credit with Non-bank Lenders

Increasing European SME Access to Credit with Non-bank Lenders

Affordable access to credit has always been challenging for small and medium-sized enterprises (SMEs) in Europe, but the problem is probably more acute than at any time in recent history. This reflects a mismatch between the demand and supply of credit that is likely to continue for several years. In the long term, improvement in banks’ capital levels and adjustments in SMEs’ expectations might lead to the emergence of a smoother functioning SME lending market. But over the next few years, many small and medium-sized firms are likely to find the terms of bank credit, already demanding, virtually unaffordable.

Категория: Метки: ,


We believe the shortfall in the supply of bank credit to European SMEs will last for another five years.

We also believe European firms will struggle to fill this gap using other existing sources of credit. Europe’s medium-sized enterprises do not typically enjoy the same sort of access to bond markets as their counterparts in the US. European bond issuance has strengthened during 2012 and 2013, but total bank loans still comprise the large majority of European corporate debt, compared with less than 30% in the US.

Europe’s securitization markets, which could help banks lend to smaller firms with limited credit histories, are also recovering slowly in the post-crisis regulatory environment. European SME securitization only raised a total of €45bn in 2012 and just €16bn during the first three quarters of 2013. Meanwhile, retail bonds are currently barely known outside Germany and Italy and peer-to-peer lending and crowdfunding platforms are still gaining traction in most European markets. We see a major opportunity for non-bank institutions to extend credit to medium-sized European firms.

We believe this segment offers the greatest scope for growth in non-bank lending and would expect a typical loan to fall somewhere between €10m and €50m. Below that band, loans will be too small to interest non-bank institutions; above it, companies will typically have their own credit rating and easier access to other sources of credit.