For Dutch medium-sized businesses with investment projects ranging from seven to ten years, obtaining finance is often difficult. The relatively expensive road to the bond market is not open to these mid-cap companies. In many cases, bank finance does not extend beyond five years, and banks have become more cautious since the crisis. Growth in long-term lending has been falling for quarters (see Figure 1).
Figure 1: Banks have become more cautious about corporate lending
% change in corporate bank lending with maturities exceeding five years