Banks and other lenders are now tightening their credit assessments for SMEs
Krea's latest SME finance approval index demonstrates an evident drop from the peak point of 85% in Q4 2021 to 70% in Q3 2022. Expressed differently, 3 out of 10 companies requesting finance through Krea are not presented with any offers for a business loan, factoring and real estate loans.Companies performing low on credit scores are seemingly the most affected, with an average approval rate of only 37.5% during the last quarter, compared to 67.5% in Q4 2021. However, although banks are more careful in their credit assessments, the overall lending situation is still comparably better than