How far can alternative finance grow in Spain?

From a global point of view, there are several factors that will favour the rise of non-bank financing in Spain. This is despite the fact that the market share is still lower than in other neighbouring countries, such as Germany and the United Kingdom.

            There are several reasons for this and some of them are quite obvious. On the one hand, despite the fact that traditional banks have undeniably lowered their lending ratios and contributions to small and medium-sized enterprises, the tap still has some flow, although it is true that at certain times entrepreneurs perceive it as dry or closed.

            On the other hand, it is true that the Spanish business structure is full of family-owned SMEs and micro-SMEs that are quite conservative in the role that debt can play in growth and value creation processes, and that sometimes focus excessively on the sole parameter of financial costs, without calibrating other tactical and operational advantages.

            As pointed out by the Risk Department at DEXTERRubén Miñarro, "Not all small entrepreneurs are able to see the potential of private capital, the speed that it can bring to any structure in the production processes... Spain is still a step behind in this respect"..

            To this, Miñarro adds that, within the pace of progress of private capital in Spain, "The positive thing is that we very often find the case of companies that, due to their growth milestones, still lack the foundations, the muscle, the weight on the balance sheet for traditional banks to come in and consider it an attractive bet... we look for this profile of entrepreneurs with whom we work not only in the role of financier but, beyond that, as a partner, as a travelling companion; the difference is not exactly minor".concludes Miñarro.