SMEs’ Perceptions of Availability of External Finance

Abstract

The formation of perceptions and expectations regarding the availability of external financing is a critical area of research for monetary policy, particularly in light of the Covid-19 pandemic and the ongoing energy crisis. This study utilizes data from the semi-annually conducted Survey on the Access to Finance of Enterprises (SAFE). The data covers the time period from April 2014 to September 2022. Our aim is to investigate how SMEs perceive and expect the availability of bank loans, credit lines, and trade credits. Our findings highlight that past experiences and changing demands for financing are significant drivers in shaping
both past perceptions and future expectations. Behavioral factors such as loss aversion and rational inattention play a crucial role in influencing managerial decisions. These insights help explain the persistent low credit dynamics observed since the financial crisis and suggest similar trends may follow the current economic disruptions. Our results underscore the importance of considering behavioral elements and past experiences in designing effective monetary policies to support SMEs’ access to finance.