Over 86% of PYMES (small and medium-sized businesses) found it hard to get bank loans in the last quarter and 11.2% failed altogether to get the finance they were looking for according to a report published today by the National Council of Chambers of Commerce.

1,660,000 companies, each with under 250 workers, took part in the study and 78.1% of them said that they had tried to get outside financing between March and May this year.

43.5% said they had managed to borrow less than in previous years and 58% confirmed that the cost of borrowing had increased.
 
88.3% believed that the banks were demanding much more in the way of guarantees.

The vast majority (87.3%) of PYMES trying to borrow money over the past three months have done so because they have not been paid on time by their clients, in particular by government offices, that wait an average of 6.5 months before paying.