KfW Research sees an increase in problems of almost four per cent compared to the fourth quarter

According to a new analysis by KfW Research (https://www.kfw.de/%C3%9Cber-die-KfW/KfW-Research/), more and more SMEs in Germany with financing needs are finding it difficult to access credit. In the fourth quarter of 2025, 37.8 per cent of companies reported more difficult lending conditions – an increase of 3.9 percentage points on the previous quarter and a new record high.

Situation remains tense

Although the proportion of large companies was below the previous peak at 29.4 per cent, it rose by a significant nine percentage points compared to the previous quarter, according to the KfW economists in their survey. The situation remains tense. For three years now, SMEs have been reporting above-average strict standards on the part of banks in credit negotiations.

‘Due to the manifold economic challenges, banks seem to be assuming a deterioration in companies’ fundamentals and are therefore acting cautiously,’ says KfW Chief Economist Dirk Schumacher, who evaluates the data from the ifo Institute’s economic surveys (https://www.ifo.de) every quarter – by size and economic sector.

The economy as a stumbling block

Across all sectors, the hurdles for lending reached new highs. In the SME sector, the retail trade (45.2 per cent) and the service sector (41.4 per cent) were particularly affected. According to the data analysis (https://www.kfw.de/% C3%9Cber-die-KfW/Service/Download-Center/Konzernthemen/Research/Indikatoren/KfW-ifo-Kredith%C3%BCrde/index.html).

Companies’ interest in financing also remains low. Only around one in five SMEs negotiated loans in the fourth quarter – significantly less than the long-term average. In contrast, the proportion of large companies rose significantly by 4.3 percentage points to 31.5 per cent, almost reaching its long-term average.

“The lack of economic acceleration to date is acting as a stumbling block (https://www.kfw.de/%C3%9Cber-die-KfW/Newsroom/Aktuelles/Mittelstand-st%C3%A4rken.html) to companies’ interest in borrowing. The expiring easing of lending rates has had only a limited effect,” said Schumacher. An economic recovery and the overcoming of structural challenges to facilitate lending are essential.