Insee Analyses · January 2025 · n° 102

At the beginning of 2024, the bank account situation of small and medium businesses was more fragile than before the health crisis

In March 2024, Crédit Mutuel Alliance Fédérale (CMAF) business customers classified as very small enterprises (VSE) and small and medium-sized enterprises (SME) exceeded their bank overdraft authorization on average for 1.9 days, which is more than before the health crisis (1.6 days). Although the massive use of cash credit during the health crisis, facilitated by the state guaranteed loan scheme, enabled a temporary decrease, the indicator then rose gradually and exceeded its pre-crisis level during the summer of 2022. The situation of VSEs, initially more favourable, has aligned closer to that of SMEs.

The construction sector has been the most affected sector since mid-2022, with an average of 2.6 days of overruns in March 2024. Moreover, at this date, the median current account balance was 26% below its pre-crisis level, and the drop was even more pronounced in real terms, when accounting for inflation. The decline was particularly severe for businesses in distress, with twice as many VSEs and SMEs being overdrawn at the beginning of 2024 compared to the start of 2020.