Spanish firms perceive improved bank financing access, pace slows

Spanish companies reported a positive net percentage of increased sales (16 percent) between October and December 2025, a five-point rise from the previous quarter.

However, a significant net proportion of firms saw their costs, both labor and other, increase (47 percent and 52 percent respectively), considerably higher than the prior quarter's figures (35 percent and 36 percent).

Consequently, the net percentage of companies reporting increased profits was almost zero, slightly below the previous round's 1 percent.

The process of deleveraging continued at a slightly faster pace, with a net 9 percent of Spanish companies reporting a decrease in their debt-to-asset ratio, up from 4 percent previously.

This trend was consistent across both small and medium-sized enterprises (SMEs) and large companies.

Overall, the economic activity presented a mixed picture, with sales growth offset by rising costs and stagnant profits.

Bank financing needs increased slightly in Q4 2025, leading to a rise in loan applications to 25 percent.

While bank loan availability improved, the pace slowed, with a net 5 percent of companies reporting better access, down 5 percentage points from the prior survey.

Banks' increased willingness to lend (17 percent net) was a key positive factor.

However, difficulties in obtaining loans rose to 7.5 percent, largely due to 'discouraged demand' (5.2 percent of firms did not apply).

Interest rates saw a slight net reduction of 4 percent.

Notably, SMEs faced increased financing costs, contrasting with decreases for larger companies.

Loan amounts increased, but maturities shortened, and collateral requirements tightened slightly.

A net 10 percent of companies anticipated continued improvement in Q1 2026.