Publication . Duarte, Filipe A. P.; Rodrigues, Luís Fernandes; Madeira, Maria Jose
The aim of this work is to show the relevance of guarantees provided by the Mutual
Credit Guarantee System (MCGS - the Portuguese Society of Credit Guarantee SPGM) as an
instrument used in the financing of SMEs, especially in restructuring long-term debt (LTD)
and bank loans. The study provides empirical evidence and puts forward an explanatory model
of the influence of the mutual credit guarantees on the financing of SMEs. The results
obtained show that long-term debt (LTD) financing is positively influenced by the guarantees
provided by the MCGS to SMEs as it allows greater debt capacity, especially in the medium
and long term, for firms that usually cannot obtain this type of financing. The results also
suggest that this type of guarantees creates an environment of confidence among all
stakeholders involved.
