Qonto recently published a study on the financing habits and attitudes of freelancers and microbusinesses in Europe. The report is based on a survey conducted in April 2026 among 1,659 small-business owners in France, Germany, Italy, and Spain to analyze their financing habits, cash management, and the barriers they face in accessing the capital they need.
Cash flow problems hit the personal pockets of SMEs
The study reveals a continental-scale disconnect, as nearly half (46%) of Europe’s smallest businesses have reduced or stopped paying themselves a salary in the past year, resorting to sacrificing their own pay as financial support. This figure rises to 71% among businesses in their first 6 to 12 months of activity. The same 46% state that managing cash flow is one of their biggest challenges; yet 45% have decided not to seek financing, and 57% of them say they don’t need it. Even more worrying is that more than a third (36%) consider borrowing a sign of failure.
The result is a vicious financial circle. And the cost is clear: more than a quarter (28%) have missed business opportunities due to a lack of financing, and more than a third (37%) say they want to grow but lack capital.
Spanish SMEs show figures above the European average in several indicators. Half (50%) of their managers have reduced or stopped paying themselves their own salary at least once in the last year, compared with 46% average across the EU. Sixty-one percent—wait, to maintain accuracy: 57% say that managing cash is one of their biggest challenges, the highest percentage in the EU, versus 46% on average. Finally, half of Spanish SMEs have never turned to external financing, the highest rate in Europe, tied with Germany, compared with 45% average in the EU.
The debt-stigma barrier
The financing gap isn’t just a product or access problem; it’s also a psychological one, because there’s a sense of shame attached to taking out loans. The 36% of small-business owners in the four markets who do not use financing are not comfortable with the idea of incurring debt. In addition, fear of losing control also plays a role. In this regard, 33% fear that financing could compromise their ability to make business decisions.
El 35% of owners who do not use financing are not comfortable with the idea of taking on debt, a figure that peaks at 41% in France, while 57% say they don’t need financing despite the financial concerns noted above.
Declining financing is also a matter of personal principles. The 77% of respondents who say they are proud to run their business on their own, without external support, reflects a cultural stance. For many, turning to external capital is perceived as a failure, even when cash flow is uncertain.
In Spain, 37% of SMEs think that asking for loans signals poor financial management, slightly above the EU average of 36%. This figure matches Italy (37%) and contrasts with the peak in France (41%) and the trough in Germany (27%). Among Spanish firms that do not use financing, 49% say they refrained because they do not need it, and 36% say they simply dislike the idea of incurring debt. Moreover, 39% of Spanish SMEs say they fear that turning to financing could cause them to lose control over their business decisions, the highest share in the EU, versus the EU average of 33%.
Four countries, four distinct financing cultures
Financing product choices and provider selection vary notably by market, underscoring clear differences in how financing is approached in each country.
Bank loans remain the most common financing option in all surveyed countries: 64% of European SMEs that access finance have at least one bank loan. French companies are the most dependent on this product, at 73%. The use of bank overdrafts, however, varies widely: Italy leads the markets with 34% of its SMEs using this form of financing, compared to 20% in France, 19% in Germany, and 12% in Spain.
When choosing providers, familiarity helps get the first step done, but does not necessarily guarantee retention. 58% prefer to stay with providers they know, reaching a EU-high 64% in France. Similarly, 59% of EU SMEs chose their current lender simply because they were a client. However, 49% would switch providers mid-loan if they found better rates. In addition, priorities when selecting a financing provider vary by country.
In the case of Spain, simplicity is highly valued. 25% of SMEs choose a provider for the ease of the application process, the highest share in the EU versus 20% average. Spain also shows the lowest reliance on bank loans, tied with Germany: 55% of financing users have at least one bank loan, versus 64% EU average. Yet it remains the most common financing option. On the other hand, 37% of Spanish SMEs that access financing have a line of credit, versus 27% EU average; this is the highest rate, shared with Italy.
Despite a reluctance to pursue external financing, 28% of EU SMEs acknowledge they will likely need financial support in the next 12 months. The share is lower in Germany (24%) and Italy (26%), and highest in Spain and France, both at 31%. It remains to be seen whether this group will overcome deep-seated cultural reticence and the stigma associated with debt to access the financing they need. Ten percent of those expecting financing in the coming year say they do not plan to apply.
“A third of SMEs believe that taking on debt signals poor financial management when, in fact, it is a lever that businesses can use to reach their objectives when needed,” says Alexandre Prot, cofounder and CEO of Qonto. “In Qonto, our work is to remove unnecessary frictions in financing from the daily operations of entrepreneurs so that cash-flow management becomes as routine as approving an invoice. We’ve built business banking tailored for the SME market with tools that understand their cash cycles, growth patterns, and operational realities, not just generic solutions borrowed from large corporations. Europe’s prosperity hinges on its economic backbone: strong and dynamic small businesses. Real financial collaboration means giving them access to capital on their own terms.”
