Liquidity Tops European Business Concerns as Credit Lines Tighten

Research from Siemens Financial Services has revealed that liquidity remains the top financial priority for European companies as they focus on obtaining working capital at a reasonable price. In a survey of Europe’s top 1000 company financial managers, Siemens found that gaining liquidity, in an economic atmosphere where lines of credit continue to tighten, was the top financial priority for European businesses through to the end of 2005. The report found that the second top concern for European business was to replace the financial stability of relationship bank lending with other sources of mid- to long-term finance, cushioning those companies from temporary market and economic volatility. Siemens Financial Services also predicts that almost 11 per cent of current relationship lending volumes are expected to have switched to alternative financing approaches (asset-backed finance, leasing, private equity, etc) by the end of 2005 in Europe.

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