Businesses across the eurozone are facing greater difficulty obtaining bank financing, adding pressure to companies already dealing with rising operating expenses and weaker profitability.

The European Central Bank’s third-quarter 2026 survey on access to finance found that lending rates increased while the availability of bank loans declined.

The findings highlight a challenging environment for companies that depend on external funding to manage daily operations, pay suppliers and invest in expansion. More expensive borrowing and stricter lending conditions could make financial planning increasingly difficult.

Bank Loans Become More Expensive

The net share of eurozone businesses reporting higher bank-loan interest rates reached 46% in the third quarter, compared with 42% in the previous quarter. Large companies experienced a particularly noticeable increase, with the figure rising to 55% from 41%. Among small and medium-sized enterprises (SMEs), it eased slightly from 43% to 38%, although more firms still reported increases than decreases.

Other financing expenses also rose. A net 27% of businesses reported higher bank charges, fees and commissions. Meanwhile, 14% reported increased collateral requirements, compared with 10% previously. Higher interest payments can reduce available cash, while additional fees and collateral requirements create further financial pressure. Companies may respond by postponing investment, reducing borrowing or relying more heavily on internal funds.

Loan Availability Declines

Access to credit became more difficult during the quarter. The net balance for bank-loan availability declined to minus 5%, compared with minus 1% in the previous survey. Both SMEs and larger companies experienced weaker conditions. SMEs recorded a balance of minus 5%, while large businesses moved from a positive 4% to minus 6%.

The proportion of firms reporting obstacles to obtaining bank loans also increased from 5% to 7%. This measure includes businesses receiving less financing than requested, facing unfavourable offers or deciding not to apply because rejection was expected. It should not be confused with the actual loan rejection rate.

Working-Capital Pressures Increase

Working capital covers the everyday expenses needed to keep a company operating, including inventory purchases, employee payments and supplier invoices. Businesses often use credit lines and trade credit to manage temporary gaps between expenses and incoming customer payments.

The ECB survey recorded increased demand for both forms of financing, suggesting that some companies were experiencing greater pressure on their short-term cash flow. Profitability also weakened. The net share of businesses reporting lower profits increased to 21% from 16%, while the balance reporting higher turnover declined from 9% to 4%.

When revenue growth slows while operating expenses remain elevated, companies have less room to absorb unexpected costs. This can make affordable financing especially important for maintaining normal operations.

Economic Uncertainty Complicates Business Planning

The general economic outlook remained the main concern affecting access to external financing. A net 31% of companies said economic conditions were negatively influencing financing availability, compared with 29% in the previous survey. More businesses also expected access to external funding to deteriorate over the following three months. Such expectations can influence decisions about recruitment, equipment purchases and expansion.

Expert Insight

Philip R. Lane, Chief Economist and Member of the Executive Board of the European Central Bank, discussed the effect of higher market interest rates on financial conditions. In an October 5, 2026 speech, he stated: “the increase in long-term interest rates constitutes a material tightening of financial conditions for the euro area.”

Eurozone companies faced tighter financing conditions in the third quarter of 2026. Higher loan interest rates, declining credit availability and increased financing obstacles added pressure to businesses already managing weaker profitability and rising operating expenses.

Although conditions differ according to company size and financial strength, the overall trend highlights the importance of accessible business financing. More favourable lending conditions could help companies maintain cash flow, continue investment and support longer-term growth.