Taking, as starting point, a sample of small and medium-sized (SME)
Portuguese companies customers of credit of a given bank branch, we examine
empirically the role of both banking relationships and the economic and
financial situation of the firms in the determination of the funding
conditions obtained. Based on multiple regression analysis, it was found
that, for the explanatory model of the level of the risk premium, the
variables that showed significance for such explanation were the firm
reputation, the amount of credit granted and also the overall liquidity of
the customer. Regarding the explanatory model of the amount of credit
granted, the variable duration has a significant impact, indicating that
relationships are valuable in such issue. In both models, the variables that
have shown to have a greater impact on the amount and price of the granted
credit available were variables related to the economic and financial
performance of the firms