Influence of relationship financing on credit availability: Proposal of a conceptual Model

Abstract

Nowadays, the major challenge for SMEs remains access to bank credit. Due to their opacity in terms of information, these companies are confronted with a reluctance on the part of banks to allocate credit. The financing problem is exacerbated by opportunistic behavior on both sides. In the literature, relationship financing has been put forward as a solution to the difficulty of accessing bank credit. In this article, we present a synthetic review of the influence of relationship banking on companies' access to financial resources. First, we will outline the reality of the problematic relationship between the SME and the bank, then we will outline the theoretical contributions of relationship financing, in particular its role in alleviating the phenomenon of credit rationing. After exploring the conceptual literature, we propose a research model examining the influence of the relationship approach on credit availability.

JEL Classification: G21
Paper type: Theoretical Research