FRANKFURT (dpa-AFX) - Small and medium-sized enterprises (SMEs) in Germany are finding it increasingly difficult to access loans due to the ongoing economic crisis. In a survey conducted by the development bank KfW, 37.8 percent of SMEs reported tougher lending conditions in the final quarter of 2025. This marks an increase of 3.9 percentage points compared to the previous quarter and sets a new record high. Among large corporations, the proportion stood at 29.4 percent, which, while below the previous peak, is still nine percentage points higher than the prior quarter.
For the past three years, SMEs have been reporting strict standards from banks during loan negotiations. "Given the diverse economic challenges, banks appear to be assuming a deterioration in companies' fundamentals and are therefore acting cautiously," said KfW Chief Economist Dirk Schumacher.
Retail Sector Especially Affected
Each quarter, the development bank analyzes data from the Ifo Institute's economic surveys. According to the findings, lending hurdles have reached record levels across all sectors. Within the SME segment, the retail sector (45.2 percent) and the service sector (41.4 percent) were particularly affected. Among large corporations, record highs were observed in the retail sector (49.7 percent) and wholesale trade (41.7 percent).
According to KfW, only about one in five SMEs entered into loan negotiations in the fourth quarter—significantly fewer than the long-term average. The economic downturn is dampening companies' interest in loans, Schumacher noted. In contrast, the proportion among large corporations rose sharply by 4.3 percentage points to nearly one-third, almost reaching the long-term average./als/DP/mis
