The bank gave several turns of the nut to the credit destined to companies, with its increase and the request of greater guarantees. Bilaterals, which are the case of SMEs and syndicated loans, focused on large companies, fed all kinds of projects even in the first stages of the crisis, but it is increasingly difficult to close agreements. A report from the Superior Council of Chambers of Commerce maintains that half of the SMEs that end up accessing a loan must provide personal guarantees.
Credit policies, commercial paper discounts, invoice advances, confirming, factoring, among other things, as well as more complex financing structures to carry out corporate operations or project finance.
KPMG experts analyzed other alternative ways to raise funds when the relationship with banks ceases to be fluid and these are 4 detailed below:
1- Factoring without recourse: This consists of acquiring the client portfolio of a company for a financial entity. This allows to cover the circulante when receiving the funds before expiration. In a way, it’s like a discount . Its analysts point out that it is a usual tool when the aforementioned basket of clients has a good credit quality, given that the financial entities renounce the resource and if it is well articulated legally, the client’s departure can be removed from the company’s balance sheet .
2- Securitization: It is based on the transfer to an investor of financial assets that provide credit rights. These can range from invoices to loans from financial institutions. The fact is that these credit rights are transformed into financial securities and credit rights are usually written off the balance sheet . Securitization is a frequent route among financial institutions.
3- Alternative Stock Market (MAB): There is no shortage of registered advisors and liquidity providers that are directed to medium-sized companies in order to facilitate the jump to the capital market. In theory, there is a wide spectrum of companies that may be eligible to be listed on the MAB, but it is understood that there are certain characteristics that mark the real capacity to undertake a successful exit.
The candidate to enter the MAB must fulfill four maxims:
- have a clear destination for funding and present a project with growth potential;
- have a realistic business plan;
- the shareholders and, of course, the management, must be committed to the business, and the market prioritizes internationalization plans.
The Alternative Stock Market brings together 21 companies and the average financing obtained reaches 5.5 million . The minimum established to start trading is in the two million euros. This year there were six capital increases (AB Biotics, Eurena Wireless, Medom Tech, Carbures, Secuoya and Gowex) and five additions. The biggest operation was Gowex, with an increase of 18 million.
4- Bond market: Europe is light years ahead of the development of the United States, however there have been notable advances since 2009 and almost half of the debt issued in the Old Continent is already in bonds. KPMG argues that its recipients are specialized funds that seek more attractive returns than that offered by other traditional fixed income products . Insurance companies and pension funds are also common buyers.