In times of crisis, SMEs encounter greater difficulties in obtaining external financing than large companies and this phenomenon is more pronounced in Italy and Spain than in Germany. The European Central Bank explains it in an analysis contained in the latest monthly bulletin. According to the ECB, the obstacles encountered by SMEs are linked to various factors: limited access to external sources of financing other than bank loans, smaller size of companies, less detailed information reported in financial statements and shorter company history.
Furthermore, "the data confirm that companies with a higher level of debt and low profits, as well as those with less liquidity and fewer assets to be allocated as collateral - reads the bulletin -, are more likely to encounter obstacles in accessing to funding. Even the companies most burdened by financial burdens encounter more obstacles”. The extent of the obstacles, however, "varies from one country to another - underlines the ECB -, which shows how the financial position constitutes, for companies that have financing difficulties, a much more important factor of discrimination in Spain and Italy rather than in Germany”.
Moreover, the trend of some differentials "seems to indicate that between Italian and Spanish companies, not only was the absolute level of bank rates substantially higher than for French and German companies - concludes the Eurotower -, but also that the higher premiums paid by SMEs compared to large companies increased considerably in 2011 and 2012. Only in the second half of 2012, following the easing of tensions on the government bond markets, did these spreads begin to decrease, although they remained high throughout 2013, with the sole exception of Spain, where they decreased towards the end of 2013”.
