SMEs remain in dire need of finance

Five out of ten small and medium-sized enterprises have had financing needs in the last year, according to the 'XIV Report on SME Financing in Spain, prepared by SGR-CESGAR. In total, more than 1.6 million SMEs.

With regard to the use of financing, two-thirds of companies have required it for working capital, which is losing weight compared with the increase in those that use it for investment. On the other hand, the financial situation of these companies has improved over the last 12 months, marked by lower levels of debt and a reduction in financial costs, which means that 21% of SMEs are in a situation of growth and financial improvement, while 43% claim to be in a stable position. In terms of short-term growth prospects, 44% of SMEs expect their turnover to increase in the coming year.

Small and medium-sized enterprises point out that the main obstacles to accessing external financing are the cost of financing, followed by the lack of guarantees requested. In this respect, from DEXTERits Senior Risk Analyst, Rubén Miñarro, points out that "Companies like ours do everything possible to enable medium-sized companies to access credit and liquidity, although it is true that, depending on the sector in which they operate, they cannot always offer liquid, mortgage guarantees..

A large part of the alternative financing to which DEXTER provides access is for real estate projects (bridge loans, developer loans, asset purchase loans and land purchase loans), although it is true that, in addition to providing liquidity for projects under development, a high percentage of companies are looking for working capital to enable them to grow or overcome a certain cyclical downturn, to clean up their accounts and cash flow. In the vast majority of cases, the presence of real estate as a hedge against the capital provided is sought.