The results of the second Fintech and Alternative Financing Business Barometer, presented by the Institute of Financial Studies (IEF) and the financial consultancy Altria Corpo, indicate that alternative financing will gain ground over banking in the next two years . 47% of the companies consulted for this study affirm that they have already gone to it on some occasion. Factoring , renting and leasing are the formulas that have been used the most .
Advantages of alternative financing compared to traditional bank financing
The general director of the IEF, Josep Soler, affirms that the importance of alternative financing will grow due to the potential increase in interest rates. “This situation will occur if the European Central Bank (ECB) bets on the rise in the cost of money, which would cause a rise and a reduction in bank credit,” he clarifies.
The benefits of alternative financing compared to traditional financing are clear: flexibility of terms and conditions and, sometimes, the requirement of fewer guarantees for its granting. The report also highlights that above all these advantages, there is “the diversification that companies achieve in their sources of financing, beyond banks.”
Another factor that must be taken into account is that, between the months of March and July, the expiration of the lack of ICO credits will come and many companies will not be able to assume their return. “This, together with the renewal of the ICO lines of credit that will expire in 2023, opens a window of opportunity for both alternative financing and fintech to gain ground on bank financing in the next two years”, it is pointed out. on the barometer.
47% of the companies surveyed have used alternative financing
Almost half of the companies that have participated in the elaboration of the barometer acknowledge that they have resorted to alternative financing on some occasion. 39% of them have resorted to factoring, renting or leasing to solve their liquidity problems. “On the other hand, only 23% of companies have used fintech providers, with invoice advances being the most used, with 11% of all companies surveyed,” according to the report.
Regarding the knowledge they have about the fintech sector, the number of companies that do have information about it is increasing. Still, only 38% of companies surveyed have been able to name a fintech provider.
Access to bank financing is complicated
The perception of access to bank loans is very different between companies and banks. While the latter consider that it has remained at the same levels during 2020 and 2021, the companies affirm that this has not been the case and that they have encountered more difficulties in obtaining financing.
Compared to this year, 70% of the companies that will have to seek financing believe that it will be more difficult to access the products offered by traditional banks. More than half of these companies, 57%, do not rule out the possibility of resorting to new sources of financing (23% more than in 2021).
For the director of Altria Corpo, Eloi Noya, he believes that the tightening of the conditions to access traditional financing will benefit alternative sources. “ Companies seem to be more aware and knowledgeable about these alternative options and the risk diversification they provide .”
Although the results are positive for the sector, the report acknowledges that alternative financing is not growing in Spain at the same level as in the rest of Europe. According to those surveyed, the key lies in the lack of knowledge about it and in the strong competition that exists in the banking system