Empowering businesses to invest drives growth. Despite this truism, small and medium enterprises (SMEs) are finding it more and more difficult to obtain credit.
According to a survey conducted by KPMG and the General Confederation of Small and Medium sized Enterprises (CGPME), 43% of SMEs consider the main factors blocking access to credit to be high financing fees and the practice of granting loans for a lesser amount than originally requested. Moreover, supplementary guarantees required by banking establishments serve to disqualify 42% of SMEs. By the end of 2012, 71% of businesses reported that their banks had tightened credit standards.
Are tax credits the solution?
In an effort to enhance competitiveness, the French government has proposed 20 billion euros worth of tax credits. However, 74% of the businesses surveyed do not believe that these credits would lead to better financing solutions for SMEs because they are not tied to a reduction in the cost of labor.