Survey: Small companies mostly rely on self-financing for investments
In the past five years, 85% of small Hungarian companies used their own funds for investments and 39% of them borrowed from banks, a survey commissioned by guarantor Garantiqa Hitelgarancia shows. Microbusinesses relied on self-funding in 84% of the cases and 26% took out loans from banks.
Banks offered credit at market conditions to 43% of small companies and recommended the National Bank of Hungaryʼs (MNB) Funding for Growth Scheme (FGS) to 34% of them. The ratios for microbusinesses was 29% and 25%, respectively for the two funding sources. Banks provided surety services for 28% of small companies and for 8% of micro companies.
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