KfW Business Survey 2020: Lending climate – Businesses are well-equipped for the crisis

In cooperation with 19 trade associations, KfW Group has conducted a business survey on banking behaviour and financing for the 19th time.

The survey was carried out between mid-December 2019 and the end of March 2020, overlapping with the outbreak of the coronavirus pandemic and the containment measures introduced in the second half of March. The survey revealed that the financing situation of enterprises in Germany was good until the outbreak of the coronavirus crisis. Enterprises’ robust self-financing capacity, low interest rates and German banks’ relaxed lending criteria were major contributors.

The most important results are:

  • The financing situation remained good until the outbreak of the coronavirus crisis.
  • The proportion of enterprises reporting difficulties in accessing credit was 13.4%.
  • As before, however, small businesses are still much more likely to face difficulties in accessing credit.
  • The positive development of businesses’ equity ratio and credit rating continued up until the beginning of 2020.
  • Bank loans remain an important source of funding for businesses. Internal funding, however, continues to play by far the most important role in business financing.

Please find a summary at: KfW Business Survey 2020: Access to finance


Text: KfW

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