Four in ten SMEs report difficulty accessing credit

Access to credit for small and medium-sized enterprises (SMEs) in Germany has deteriorated, with 40.5% of credit-seeking SMEs reporting that their banks acted restrictively in the second quarter of 2026. This figure represents a 6.5 percentage point increase from the previous quarter and marks a new record high since the survey began in 2017.

Among large companies that had credit discussions in the preceding three months, 32.9% cited strict banking standards, the second-highest rate documented since data collection started. KfW Chief Economist Dr. Dirk Schumacher stated that the weak economic climate is impacting companies' balance sheets and ratings, prompting banks to impose higher risk premiums and tougher financing conditions.

The retail sector experienced a particularly sharp rise in credit obstacles, with over half of businesses in both size categories facing restrictions. Dr. Schumacher attributed this to the decline in consumer spending caused by inflation, which is heavily impacting retailers.

Simultaneously, the demand for credit from businesses also decreased noticeably. The proportion of SMEs engaged in financing negotiations with banks fell to 19.3%, the lowest level since late 2023. Large companies also showed subdued credit interest. Dr. Schumacher suggested that dampened business sentiment, influenced by geopolitical events such as the Iran conflict and its effects on energy prices and supply chains, is contributing to reduced credit demand.