Law 5\/2015 of 27 April on the Promotion of Business Financing included two important initiatives to improve the SME financing environment: first, to make bank financing more accessible and flexible; second, to strengthen alternative sources of financing. Without going into the reasons why SME financing declined so substantially during the crisis, the fact is that any measures taken to prevent it from happening again are welcome and desired by all parties. Financial institutions are the first to be interested in being able to provide more financing to their SME clients. <\/p>\n
It is their retail business, on which their results largely depend. They are demonstrating this at pres-
\nent, as new lending to small businesses is growing at rates above 5% per year. Returning to the aforementioned law, it establishes certain obligations for banks. On the one hand, the preparation of extensive information on the financial situation and payment history, which will be set out in a document called SME Financial Information, using the corresponding templates designed by the Bank of Spain. This information must be provided to the SME. In turn, it entrusts the institution with both specifying the content and format of the aforementioned document and developing a standardised methodology to assess the credit quality of SMEs and self-employed individuals, through which a risk rating can be obtained. The development of all of the above is set out in Bank of Spain Circular 6\/2016, which will enter into force next 11 October. <\/p>\n