Special report: Italian SME- Capital Structure Analysis

CRIF Ratings (‘CRIF’) has analyzed the evolution of the financial structure of more than 15,000 Italian Small and Medium Enterprises (SMEs), with a turnover between EUR10m and EUR500m over the last decade. The main finding of the study is the lack of financial flexibility that in CRIF’s view is a major factor  constraining the companies’ growth.

Limited banks disintermediation, large recourse to short term debt and a relatively little amount of cash on balance sheet compared to short term debt are the most common features of SMEs’ financial structures. As a consequence, the financial profile of Italian SMEs remains generally weak and too much reliant upon the banking system to support the short and long term financial needs.

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