Banque de France reports rising credit costs for SMEs

Data from the Banque de France regarding business financing through July 2026 shows a rise in total bank credit to non-financial corporations, reaching 1,443.6 billion euros, a 3.5% annual increase. Investment credit grew by 4.6% to 1,058.6 billion euros.

In contrast, cash flow credit declined by 1.4% to 302.5 billion euros, with a more significant drop observed among very small enterprises (TPE), whose cash flow credit fell 17.3% year-on-year.

The cost of new financing is also rising. For small and medium-sized enterprises (PME), the cost increased from 3.64% in June to 3.72% in July. Large companies saw costs rise from 3.50% to 3.62%, while costs for intermediate-sized enterprises (ETI) remained stable at 3.87%.

According to a quarterly survey of business leaders, 24% of SMEs reported an increase in credit costs in the second quarter, up from 12% in the second quarter of 2025. Among ETIs, 27% reported rising costs, a 5-point increase over the previous quarter.