more expensive financing for businesses

more expensive financing for businesses


The European Central Bank (ECB) has scheduled a further rate hike. This could have a significant impact on businesses. 429453652/4kclips - stock.adobe.com

DECRYPTION – While the rise in rates had not slowed down corporate projects, the situation could change somewhat.

Companies have changed paradigm. Since the end of February and the beginning of the war in Ukraine, their financing costs have risen sharply. For the time being, the rise in bank loan rates (from around 1% at the start of the year to 2% or 3% for SMEs) has not slowed down their projects. Outstanding loans to (non-financial) companies thus increased by 7% in July over one year, according to the Bank of France (after already +6.5% in June and +5.9% in May).

The trend is mainly driven by the increase in investment loans. “Despite their strong increase, the rates remain quite low. The cost of credit remains affordable for small businessesexplains Germain Simoneau, Chairman of the CPME Business Financing Commission.

But the situation could change somewhat. “The increase, even slight, of the monthly payments will be added to the outbreak of inflation and the cost of raw materials. The whole will weigh on the operating accounts "adds Germain Simoneau…

This article is for subscribers only. You have 66% left to discover.

Cultivating your freedom is cultivating your curiosity.

Keep reading your article for €0.99 for the first month

Already subscribed?
Login



Source link