The European Banking Federation is a proud partner of the high level principles regarding the communication between SMEs and banks with regards loan applications together with four other European banking associations and endorsed by the Commission. The principles, developed in discussions with European SME organisations, aim at promoting high quality feedback on credit applications, enabling SME clients to better understand the reasons behind the bank’s decision.
The majority of SME applications for credit are successful. In fact, close to 80 percent of all requests are approved. However, higher rates of growth can be achieved by helping those SMEs which have not been successful understand better what they can do to obtain financing.
This shows a close connection with regards to the satisfaction with the financing received, only a small amount of EU firms (no more than 10% on average) are dissatisfied with it, be it in regards to quantity, duration, cost and collateral.