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IfM-Materialien | 2016
Financing structures and strategies for SMEs

The financing environment SMEs is changing. The changes in the economic environment and the associated low interest rate policy as well as the Basel regulations show a clear influence on the financing structures of SMEs. For example, SMEs have been able to increase their equity ratios to a much greater extent than large companies and have thus completely made up for their shortfall. This development extends across all regions and sectors. The analysis of different financing sources shows that although bank loans continue to be the central debt financing instrument for SMEs, they are clearly losing importance compared to internal financing through retained corporate profits.

Pahnke, A.; Schröder, C.; Leonhardt, F.; Wiedemann, A. (2015): Finanzierungsstrukturen und -strategien kleiner und mittlerer Unternehmen: Eine Bestandsaufnahme, IfM Bonn: IfM Materialien Nr. 242, Bonn.