Euro area businesses faced higher borrowing costs and tighter access to bank loans in the third quarter of 2026, while concerns about the economic outlook continued to limit their ability to secure external financing. The findings come from the European Central Bank’s (ECB) latest Survey on the Access to Finance of Enterprises.

Companies reported rising interest rates, stricter collateral requirements and expectations that external financing would become less available over the following three months. However, reported demand for bank loans declined, leaving the financing gap indicator slightly lower than in the previous survey round.

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Borrowing Costs And Collateral Requirements Rise

A net 46% of firms reported higher bank loan interest rates, up from 42% in the second quarter. Large companies were particularly affected, with the net share rising to 55% from 41%.

Among small and medium-sized enterprises (SMEs), the share reporting higher interest rates fell to 38% from 43%.

Other financing costs, including bank charges, fees and commissions, also increased, although less widely than in the previous quarter. A net 27% of firms reported higher costs, down from 31%.

Collateral requirements tightened as well, with a net 14% of businesses saying banks had demanded more security, compared with 10% in the previous survey round.

Bank Loan Availability Deteriorates

A net 5% of firms reported that bank loan availability had declined, compared with 1% in the previous quarter. Both SMEs and large companies experienced tighter conditions.

Among SMEs, a net 5% reported reduced availability, up from 4% in the second quarter. For large firms, the balance shifted to 6%, reversing the previous quarter’s net 4% that had reported improved access to loans.

At the same time, demand for bank loans weakened. A net 2% of firms reported a decrease in financing needs, compared with a net 2% increase in the previous quarter. Among SMEs, the balance stood at -1%, while large companies recorded a net 6% decline, reversing the previous quarter’s net 3% increase.

The bank loan financing gap indicator stood at a net 2%, down from 3% in the previous survey round. It measures changes in loan demand relative to availability, with a positive reading indicating that access to credit is deteriorating compared with firms’ financing needs.

Economic Uncertainty Limits Access To Finance

The general economic outlook remained the main factor restricting businesses’ access to external finance. A net 31% of firms said it had a negative impact, up from 29% in the previous survey round.

Large companies were more pessimistic than SMEs: net shares of 35% and 29%, respectively, reported that economic conditions were limiting their access to finance.

Companies’ own business prospects, measured through sales and profits, also continued to weigh on financing conditions. However, the net share reporting a negative impact eased slightly to 9% from 10%.

By contrast, firms’ capital positions and creditworthiness continued to support their access to external financing.

Sample Changes Affect Inflation Expectations

The ECB cautioned that substantial changes to the survey sample make some results harder to compare with earlier rounds, particularly those concerning expected selling prices, input costs and inflation. First-time respondents accounted for the majority of businesses surveyed.

Among firms that participated in both the latest and previous rounds, expectations for selling prices increased only modestly. The rise was more pronounced across the full sample.

Inflation expectations showed a similar pattern. Median expectations remained broadly unchanged among repeat respondents but increased significantly when all respondents were included. Firms’ assessment of risks surrounding their five-year inflation outlook remained broadly stable.

Survey Findings And Business Implications

The 40th round of the ECB’s Survey on the Access to Finance of Enterprises was conducted from 26 August to 2 October 2026 and covered 12,822 businesses. Of these, 11,917, or 93%, had fewer than 250 employees.

Around half of respondents assessed financing conditions and other developments between July and September, while the remainder considered the longer period from April to September. The survey also examined businesses’ expectations for euro area inflation, selling prices and other costs.

The results point to continued pressure on companies seeking bank finance, driven by higher borrowing costs, stricter lending conditions and uncertainty about the economic outlook. Although reported demand for loans declined, the availability of credit weakened relative to firms’ needs, highlighting the challenges businesses face in financing their activities.