2013年-世界发展银行全球_Survey_on_Lending_Practices_to_SMEs_in_Austria_23页_1mb

Summary of the Survey on Lending Practices to SMEs in Austria (May 2013)

Core Content

This report presents the findings of a survey conducted by the World Bank Centre for Financial Reporting Reform (CFRR) in September-October 2012, focusing on the lending practices of Austrian banks towards small and medium enterprises (SMEs). The survey aimed to understand the role of financial information and audits in credit decisions and to inform the accounting and auditing profession, policy makers, and SMEs about banks' requirements and expectations.

Main Findings

1. Loan Application Process

• Average Processing Time:

  • 5–15 days for loan application processing.
  • 1–5 days for decision-making, approval, and authorization.
  • 1–5 days for actual loan disbursement.

• Most Frequently Required Documents:

  • Audited financial statements (9 out of 10 banks).
  • Independent verification or valuation of assets to be financed (9 out of 10 banks).

• Other Commonly Required Documents:

  • Owners’ personal financial information (8 out of 10 banks).
  • Reviewed unaudited financial statements (8 out of 10 banks).
  • Business plan including cash flow projection (7 out of 10 banks).
  • Standard questionnaire for financing (6 out of 10 banks).

• Less Commonly Required Documents:

  • Tax returns (5 out of 10 banks).
  • Bank account deposit information (5 out of 10 banks).

• Risk-Rising Conditions:

  • For new customers or risky business proposals, banks tend to require more documents such as business plans, tax returns, and personal financial information.
  • Audited financial statements are least dependent on the risk level, while business plans and cash flow projections gain importance when risks are higher.

2. Banks' Assessment and Decision Making

• Approval Rate:

  • 50–75% of all credit applications are approved.

• Main Motives for Loan Applications:

  • Micro enterprises: Working capital.
  • Small, medium, and large enterprises: Investment in physical capital (property, plant, equipment).

• Loan Types by Size Class:

  • Micro and small enterprises: Medium-term loans.
  • Medium-sized enterprises: Long-term loans.
  • Larger companies: Long-term loans are more common.

• Key Factors in Credit Decisions:

  • Reputation of the applicant (most important).
  • Nature of the business.
  • Physical observation of the business.
  • Collateral.
  • Audited financial statements (especially for larger SMEs).
  • Accounting standards (especially for small enterprises).

• Evaluation of Financial Information:

  • 70% of banks consider financial statements sufficient for liquidity and cash flow information.
  • 60% of banks find financial statements insufficient for assessing business risk.
  • Banks compare financial information in loan applications with financial statements and, in some cases, tax returns.

3. Evaluation of Financial Information

• Certified Public Accountants (CPAs):

  • 50% of banks require SMEs to provide financial statements prepared by a CPA.
  • The other 50% do not require this but note that 18% of financial statements are still prepared by CPAs on average.

• Tax Returns:

  • 45% of SME borrowers provide filed business tax returns during the loan process.

4. Improvement Opportunities for SMEs

• Recommendations from Banks:
  • SMEs should provide complete and up-to-date financial information.
  • Clear documentation of stock and unfinished products is recommended.
  • A structured presentation of receivables and payables by maturity is helpful.
  • Scenario-based liquidity plans should be included in loan applications.

Key Points

• Audited Financial Statements:

  • Considered the most important document in credit decisions.
  • Banks do not place significant importance on the reputation of the audit firm.

• Financial Information Quality:

  • Financial statements are generally seen as sufficient for assessing gearing and profitability.
  • They are less sufficient for evaluating business risk and future cash flows.

• SME Importance:

  • SMEs are vital to the economy, contributing significantly to employment and value added.
  • Access to finance is crucial for SMEs, especially in the Western Balkans where credit conditions have tightened.

• Bank Segmentation:

  • Banks classify SMEs based on different criteria, which can affect the interpretation of the data.
  • The category "SME" in the report reflects banks' individual perceptions rather than a homogenous group.

Methodology and Limitations

• The survey was conducted using a 22-question questionnaire, with 13 multiple choice, 5 open-ended, and 4 rating questions.
• The questionnaire was sent to 10 Austrian banks, representing approximately one third of the sector based on total assets.
• Data was analyzed using Microsoft Excel and compared with the Austrian National Bank's database and annual reports.
• The survey does not reflect statutory definitions of SMEs but rather banks' internal classifications.

Conclusion

The survey highlights the importance of audited financial statements and the role of various factors in the credit decision-making process for SMEs. It also identifies areas where SMEs can improve their financial documentation to better meet the expectations of Austrian banks. The findings will be used to support the development of corporate financial reporting reform in Austria as part of the REPARIS program.