// NEWS //
Half of small businesses skip paying themselves to stay afloat rather than seek financing
and the barriers holding them back from accessing the capital they need.
The research reveals a continent-wide disconnect: nearly half( 46 %) of Europe’ s small businesses have reduced or skipped paying themselves a salary in the past year, using their own salary sacrifice as a financial crutch. This rises to 71 % of businesses in their first 6-12 months after creation. The same number( 46 %) say managing cash flow is one of their biggest challenges; yet 45 % have chosen not to seek financing, with 57 % of those claiming they see no need for it. Even more worryingly, over a third( 36 %) believe borrowing money to be a sign of failure.
Qonto, a leading business finance solution for SMEs and freelancers, has published new research into the financing habits and attitudes of Europe’ s small businesses. The quantitative study surveyed 1,659 solo and micro businesses across France, Germany, Italy and Spain in April 2026 to understand their financing habits, cash management practices
It paints a picture of a financial race to the bottom. And the cost is visible: over a quarter( 28 %) have missed business opportunities due to lack of financing access and more than a third( 37 %) say they want to grow but lack capital.
France and Spain lead the charge in using their income as a financial lever, with half( 50 %) of French and Spanish small businesses having reduced or skipped paying themselves a salary at least once over the past 12 months.
Professional and scientific sector borrows the most to fund insurance premiums
New analysis from one of the UK’ s leading insurance premium finance company, Premium Credit, shows the Professional and Scientific sector borrows the most to fund insurance premiums but the Wholesale and Retail Trade delivered the most growth in terms of using credit for insurance costs.
Premium Credit’ s Insurance Index, which monitors insurance buying and how it is financed, shows 90 % of SMEs use some form of credit when they buy insurance compared with 54 % recorded in last year’ s index and 55 % two years ago.
The average amount borrowed has increased 65 % to nearly £ 1,945 compared with £ 1,180 last year. Two years ago the amount borrowed was £ 1,080.
Professional and Scientific firms were the most likely to use credit to fund insurance premiums – they accounted for 14 % of all loans from Premium Credit last year just ahead of Construction companies which accounted for 13 % of loans.
The Wholesale and Retail Trade saw the most growth with its share of total lending from Premium Credit rising to 10 % from 8 % in the previous year and accounted for the third highest share of lending.
The Manufacturing and Land Transport sectors recorded the fourth and fifth highest shares of total lending with Manufacturing’ s share slipping to 9 % from 10 % while Land Transport was unchanged at 8 %.
Premium Credit’ s Insurance Index shows 69 % of SMEs report that the cost of their business insurance has increased in the past 12 months with 11 % saying it has increased dramatically.
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