Market Gaps on Access to Finance - Bank of Valletta

Malta Business Bureau – <strong>Market</strong> gaps in access to finance
April 2013
Figure 11: Interest in applying for sources of finance
A: National Grants/Public aid
The following table shows the distribution of respondents and their take up for the various sources
of finance, analysed by firm lifecycle:
Table 5: Respondents that were interested in types of finance, distributed by lifecycle
Start- Emerging Domestic Expansion- Total
Source of finance / Lifecycle stage
up growth growth growth
A: National Grants/Public aid 80% (8) 75% (3) 84% (63) 85% (11) 83%
B: EU funds 80% (8) 75% (3) 81% (61) 85% (11) 81%
C: Bank overdraft, credit line or credit
cards overdraft
40% (4) 75% (3) 65% (49) 38% (5) 60%
D: Bank Loans 50% (5) 50% (2) 63% (47) 54% (7) 60%
E: Trade Credit 50% (5) 25% (1) 63% (47) 62% (8) 60%
F: Other loan 30% (3) 50% (2) 32% (24) 15% (2) 30%
G: Leasing/ hire-purchase/ factoring 60% (6) 0% (0) 47% (35) 54% (7) 47%
H: Equity from other Sources 50% (5) 0% (0) 21% (16) 23% (3) 24%
I: Public issue of own shares or own
bonds
B: EU funds
C: Bank overdraft, credit line or credit cards overdraft
D: Bank Loans
E: Trade Credit
F: Other loan (e.g. related company/ shareholders, …
G: Leasing/ hire-purchase/ factoring
H: Equity from other Sources
I: Public issue of own shares or own bonds
Base: percentages based on total responses in each lifecycle
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
40% (4) 0% (0) 11% (8) 8% (1) 13%
Firms at the two extremes of the firm lifecycle (start ups and expansion growth firms) were less
interested in bank overdrafts (40% and 38% respectively, average of 60%), while start-ups were
more likely to favour equity (50%, average 24%). In terms of sectors, the Life Sciences and ICT
industry showed the highest interest in equity financing from other sources and through a public
issue (64% and 36% respectively, compared to averages of 24% and 13%).
5.2.7 Q5: What is the size of the last loan, of any kind, that your firm has
obtained in the last two years?
13%
This question asked respondents to provide an indication of whether they have taken a loan in the
last two years and, if yes, the size of such a loan. Given the confidential / sensitive nature of this
question, 3% of respondents chose not to provide an answer to this question and the subsequent
24%
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30%
9%
47%
60%
60%
60%
12%
Yes Don't Know No
%age of Respondents
10%
83%
81%
4%
5%
3%
78%
9%
60%
65%
49%
5%
6%
35%
31%
37%
12%
13%