More and more small and medium-sized enterprises are no longer reliant on banks to finance their investments. The corresponding benchmark has climbed from 2.42 to 2.67 points within a year—a comparatively sharp increase. This is the most notable finding of the “2016 SME Banking Barometer,” conducted by the association “Die KMU-Berater – Bundesverband freier Berater e. V.” and the German Business Exchange DUB.de.
At the same time, small and medium-sized enterprises (SMEs) rate their financing and banking situation as worse than in the previous year for the second time in a row. According to the analysis, one-third of companies see a very strong need for action to improve their financing situation and their relationship with their bank. In the opinion of the SME consultants, another 40 percent should likewise work quickly to improve their financing structure. Companies with up to 40 employees, in particular, view their financial situation with skepticism. Which banks are the best to work with? Most companies are satisfied with cooperative banks; banks operating under this model still perform the best in comparison. Following far behind in second place are the savings banks. All other financial institutions receive the lowest ratings—with one exception: companies with more than 100 employees.
According to SME consultants, the results indicate that banks are scrutinizing companies seeking loans even more carefully due to weakening earnings. “This will primarily affect the vast majority of companies with average creditworthiness; these companies are, quite obviously, for the most part not particularly well prepared for this negative development,” says Thomas Thier, chairman of the SME consultants. How can the situation be improved? How can misunderstandings be avoided? “Companies, banks, and savings banks must absolutely communicate with each other more openly and proactively,” say the SME experts. On the banks’ side, this applies above all to the results of credit ratings, debt service capacity calculations, and the valuation of collateral. Companies should take a more proactive and up-to-date approach in sharing information and future expectations with their lenders.
Nicolas Rädecke from the partner organization Deutsche Unternehmerbörse DUB.de highlights the particular importance of effective financing in business succession. “For both sellers and buyers, financial stability is a crucial factor for success. Therefore, companies should take action based on the twelve statements in the Banking Barometer and implement them,” recommends Rädecke.
