Enhancing Long-term Finance for SMEs in Europe: Conclusions report from the High-Level Expert Group Deliberation

INBONIS Rating and the SME Finance Forum (managed by the International Finance Corporation/World Bank) have published the report Enhancing Long-Term Finance for SMEs in Europe, which presents the conclusions of the second session of the expert group, held in Paris on March 11^th.

The report focuses on the challenge of converting Europe’s considerable savings into long-term financing for SMEs and midcaps, noting that insufficient access to such financing remains a key structural issue impacting the European economy.

Although access to bank credit is not the main obstacle for most SMEs, the experts note that the European model remains overly dependent on bank financing and lacks sufficient channels for patient capital and long-term funding. However, the report clarifies that the issue is not so much access to bank loans –as only around 5% of SMEs report real obstacles in obtaining them– but rather the lack of long-term investment capacity and suitable instruments to strengthen their balance sheets.

In terms of the most immediate priorities, improving SME visibility is essential through more standardised data, greater transparency, and broader use of independent credit assessments. Making SME risk more understandable, comparable, and investable is a necessary condition for attracting institutional capital and narrowing the gap between savings and investment. The experts also highlight the catalytic role of public guarantees and blended finance in strengthening SME solvency without requiring entrepreneurs to dilute control of their companies.

The full conclusions of the expert group, as well as a detailed analysis of the proposals discussed, can be consulted in the full report Enhancing Long-Term Finance for SMEs in Europe, available here.