More and more S

According to a report on the "Le Monde" website, a research report of Alvarez & Marsal stated that although the German economy is in a prosperous stage, more and more small and medium-sized enterprises have experienced complications. Of the 124 listed SMEs and family companies surveyed, more than one-quarter of the companies have fallen into the "growth trap", that is, they hope to make full use of the opportunities brought by the economic prosperity to make the company bigger and stronger and carry out the economy. Expansion, but lack of self-owned capital or ** predicament, can not raise funds for equipment and production investment. 16% of the companies surveyed have more debt than their own capital. The survey report believes that companies with high debt ratios have two disadvantages. One is that a considerable part of the proceeds must be used to pay interest, and the other is that there is little room for manoeuvre to increase investment. Banks are generally more rigorous when it comes to refinancing and extending lending deadlines, and interest risk premiums are higher.

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