Loan costs rise for French companies

The Bank of France reported a significant increase in the cost of loans for small and medium-sized enterprises (SMEs) and medium-sized companies (ETIs) during the third quarter of 2026. According to a survey published on October 20, 2026, 41% of SMEs and 58% of ETIs said their loan costs had gone up during the quarter.

Rise in loan costs continues

These percentages increased by 16 and 31 points, respectively, compared to the previous three months. The survey is based on companies' perceptions and does not reflect average interest rates or the proportion of loan applications that were rejected.

Credit remains accessible for most

Despite the higher costs, companies that applied for new investment loans generally found it easy to get financing. Ninety-six percent of SMEs and 99% of ETIs that requested such loans received the full amount or at least three-quarters of what they asked for.

New investment loans remain limited

However, the number of companies seeking new investment loans is still low. Only 19% of SMEs and 26% of ETIs requested such loans during the third quarter.

Focus on cash flow financing

The survey also showed that cash flow financing is important for many companies. About 7% of SMEs and 7% of ETIs reported needing new cash flow loans, and most of them received at least three-quarters of the amount they requested.

Existing credit lines are used

Many companies also relied on existing credit lines for financing. Fifty-six percent of SMEs and 64% of ETIs with such lines used them during the quarter. Using an existing line does not mean they requested a new loan.

Financing costs continue to rise

The movement in loan costs aligns with a measurable increase in financing costs. In its July 2026 report, the Bank of France noted that the average cost for new bank loans to non-financial companies was 3.75%, up from 3.69% in June.

Managers advised to be cautious

The survey highlights that the availability of credit does not mean its cost is stable. For company managers, comparing offers over the same period and considering repayment scenarios becomes especially important when profit margins are tight. The survey includes companies that make their own financing decisions and separates SMEs with 10 to 249 employees from ETIs with 250 to 4,999 employees. It does not directly describe the situation of all micro-enterprises or the financing obtained on bond markets.