Financing businesses through their lifecycle
Financing business refers to the funding that enables companies to start, operate, invest and grow throughout their lifecycle. As businesses evolve, so do their financing needs, moving from working capital and short term credit to support day to day operations, to term loans and other debt financing for investment and expansion, to the broader range of debt and equity solutions needed to sustain long term development and innovation.
Businesses are at the heart of the EU economy, driving innovation, employment, competitiveness and sustainable growth. Their financing needs are increasing as they adapt to the green and digital transitions, technological change and an evolving geopolitical environment. Ensuring access to appropriate financing is therefore essential to support business development and Europe’s long-term competitiveness.
The role of banks in financing European businesses
Banks are one of the main sources of external finance for European businesses, particularly SMEs. Through long term relationships, they support companies throughout their lifecycle and across economic cycles, providing credit lines and overdrafts for working capital, term loans for investment, factoring and invoice discounting to manage cash flow, and guarantees and leasing to support specific transactions and assets. Before extending credit, banks assess a company's financial health, cash flow and collateral, tailoring financing solutions to each stage of a business's development and its capacity to repay.
By combining lending with payment, advisory and risk management services, banks provide integrated financial support that helps businesses manage their day-to-day operations, invest and pursue new growth opportunities.
The Business Lending Export Group
The EBF's Business Lending Experts Group brings together experts from member national banking associations and banks to monitor developments in the European economy and business lending, assess how economic and policy developments affect the financing of businesses, and exchange views on emerging trends and challenges affecting business finance across Europe.
Drawing on the banking sector's practical experience, the Group contributes to a structured dialogue with European institutions and bodies, helping to inform policy discussions on strategic issues affecting access to finance and the competitiveness of European businesses. Its work focuses primarily on SME Access to Finance and Commercial Finance.
Chair and Vice-chair
Hendrik Hartenstein
Head of Corporate Finance at the German Banking Association (BdB)
João Tomaz
Head of Prudential, Financial Markets and Sustainability at the Portuguese Banking Association (APB)