This study investigates the impact of firms’ operational and financial performance alongside banking/financial/economic conditions on SME bank loan terms and conditions during a period of economic uncertainty. We observe that since 2010, more firms have experienced an increase in loan price. Firms’ size, age, profit/cost and capital position are important determinants of the terms and conditions of bank loans. Female-headed enterprises pay relatively higher interest rates. Public guarantees play a positive role in loan terms setting. Better capitalized and higher funding cost banks charge higher interest rates. The time it takes to settle insolvencies affects the loan maturity period. GDP per capita and growth significantly influence the terms and conditions of SME bank loans.
|Journal||The Empirical Economics Letters|
|Publication status||Accepted for publication - 11 Jul 2017|
- Bank loans
- Loan price
- Loan maturity
- Small and medium-sized enterprises