The bank once again gives credit to SMEs and the alternative channels begin to be taken into account.
- In three years it would be possible to create more than 450,000 jobs if companies receive more loans.
- View or download the PDF of ‘MiBolsillo’ for the month of May.
Access to financing continues to be one of the biggest problems for small and medium-sized Spanish companies. Although it is true that in recent years has improved.
In the report of KPMG Perspectives in Spain 2016 appears as the fourth biggest concern of entrepreneurs. There is more fear due to political uncertainty, the regulatory burden, and flexibility in labor relations.
This decrease in the ranking of difficulties, since it reached number one in the crisis years, is due to several factors. In the first place, the banks, still very demanding, have turned on the credit tap.
The latest data from the Bank of Spain indicate that the loans granted or refinanced to small companies (for a maximum amount of one million euros, which are the most common) increased close to 10% in 2015, registering the largest volume since 2011, with a total of 165,471 million euros.
In Europe, 76% of the financing obtained by companies is granted by banks, in the United States only 20%
Of this amount, 79% of SMEs benefited, while the remaining 21% was denied, according to the VII Financial diagnosis of the Spanish company prepared by Cepyme and the EADA business school. If a retrospective comparison is made, a significant advance is observed, since in 2012 the loans were denied to 42% of the companies that requested it.
There are more elements that have caused this reversal of the situation. For example, there is the progress towards the Banking Union, which among other things will allow the differences in financial costs between countries to be reduced; the support measures of the European Central Bank; the restructuring of the Spanish banking sector, which makes it possible to lend more and in better conditions; the economic recovery, which benefits the solvent demand for financing; the decline to historic lows of interest rates; the deleveraging of the companies themselves and the appearance of new financing channels such as crowdfunding or the alternative markets MAB and MARF.
The appearance of alternative sources of financing has acquired special intensity in recent years due to the need to look for complementary formulas to the traditional one – that of banks. It is one of the priorities that emerged after the crisis and that has led to our country in a Law for the Promotion of Business Financing approved a year ago.
Little by little, the new scenario for obtaining credit and Purple Payday loans become aware, but the differences continue to be overwhelming with respect to other countries. In the United States, the first country that has managed to emerge from recession, banks only account for 20% of its financial system. On the contrary, in Europe, 76% of the financing obtained by companies is granted by banks (the percentage is very similar in Spain). Mainly, it has been cultural and regulatory factors that have marked these differences.
The VII Financial Diagnosis of the Spanish company indicates that at present companies choose to finance bank loans in the first place, and then, following this order: own resources in the form of capital and / or self-financing; the concessions by public institutions (ENISA, ICO, ICF …); financial leasing ; the business angel and crowdfunding . And this situation has few signs of being different in the short or medium term, according to the opinion expressed by the executives.
The change in funding
But there is an example that illustrates the transformation process that is happening. A study by Funcas with data from the Bank of Spain shows that bank loans represented 3.59% of the capitalization of the Spanish stock market in 2009. In the first part of 2015, this percentage was 1.58%.
The market has financed more than 242,000 million companies between new additions and capital increases since 2008, and 41,600 million last year accounted for 45% more than in 2012.
In the last two years, banks have increased efforts to help SMEs. The majority grants special loans and offers different products and services with advantages. For example, Banco Santander has created a specific account 1,2,3; has vehicle renting and gives the creation of the web fulfilling some conditions. BBVA helps to export and has created a specific virtual office. For its part, Sabadell also boosts international business and has a commission-free and remunerated account.
Bankia eliminates all commissions in exchange for domiciliary social insurance or taxes, Popular offers insurance for business and leasing, among other things, and La Caixa provides sectorial solutions for leasing and renting.
That company can obtain resources is essential for recovery. The II Report on the financing of SMEs in Spain of the Spanish Confederation of Guarantee Companies concludes that SMEs could create 450,000 jobs in 3 years if access to financing improves.