Harder to get access to external credit for companies according to Krea's latest financing report
Krea's new financing report shows that companies increasingly have problems securing external credit. In the past two years, the approval rate for creditworthy companies has dropped from 89% in Q4 2021 to 70% in Q3 2023. Although the approval rate stopped falling in Q3 2023, the future is still uncertain for Swedish entrepreneurs.
The financing report for companies is made with the aim of providing a picture of the credit market for small and medium-sized companies in Sweden. The insights in the report, which are based on data from applications on Krea's platform between 2019-2023, show, among other things, the credit approval rate (the proportion of credit applications that receive at least one offer) and the interest rate trend.
When it comes to the approval rate, it is currently at a significantly low level. In class with how it looked during Covid-19. In Q3 2023, it was at 70%, which is only 1 percentage point above the lowest figure during the pandemic.
Peter Thörn, Chairman of Småföretagarnas Riksförbund: "We see in these statistics that the government has a clear basis for making decisions that reduce the cost burden for small businesses. A reduced employer contribution and the removal of sick pay liability for all small businesses are two concrete changes that would lead to a higher credit rating, which means fewer bankruptcies, more future investments and more job opportunities in the coming years."
Economically sensitive industries hit hard
The data on which the report is based suggests that the impact of the Ukraine war and rising inflation has resulted in increased costs for many businesses. Banks' reduced risk appetite and rising interest rates have created a tougher situation for companies, especially those in cyclical sectors. For example, e-commerce, construction, car dealers and trade have been most pressured with lower approval rates in Q3 2023.
Gabriella Göransson, CEO of UC AB: "That the more cyclically sensitive industries have a harder time with financing today is consistent with our statistics, where bankruptcies in both construction and retail are at very high levels, even if they are starting to level out for retail."
The interest rate index on Krea's platform for credit-worthy companies shows that the interest rate has trended upwards since Q4 2021. Industry-specific data shows that the manufacturing, IT and transport sectors also tend to have lower interest rates compared to more cyclically sensitive sectors such as car trade, restaurants and e-commerce.
The conclusion from the report is that companies, especially those with lower credit ratings and those in cyclical sectors, face challenges in accessing external credit.
For more information, please contact:
Carsten Leth, Chief Commercial Officer at Krea
Mail: carsten.leth@krea.se
Phone: +46 72 719 66 59
About Krea:
Krea is the specialized procurement platform for corporate credit with current business in Sweden and Finland. Since the launch in 2019 Krea has helped companies secure over SEK 1,7 billion in credit through a proprietary credit procurement platform. Through its platform, Krea provides easy access to business loans, factoring, property loans and business leasing with the best possible terms.