Most SMEs need access to external financing at some point in their life , whether to start the business, cover working capital needs, undertake an internationalization process or invest in productive equipment and innovation. Access to bank loans, the main source of financing chosen by Spanish SMEs, has improved compared to the crisis, but it is not always possible to obtain the necessary funds. bizautomotive
What factors
influence the granting of a bank loan?
In addition to the country's economic situation and
structural factors such as the legal framework, the granting of loans and other
forms of bank financing are influenced by more specific variables, such as
productivity, profitability and the risk profile of SMEs .
Banks usually request that SMEs be several months or years
old and that they are capable of generating a minimum of profits . They must
also be up-to-date in paying taxes and with Social Security.
Depending on the amount requested by the company, it is
likely that the bank will ask for guarantees, either in the form of guarantees
or assets of the company itself . The bank will carry out a risk profile of the
SME to assess whether it grants the financing and under what conditions.
Access to finance is
not the same in all sectors
The financing needs of SMEs are not the same in all sectors
of the economy. Companies that operate in Transport and Postal Services,
Construction, Business Services, Manufacturing Industry, Energy and Water, and
Commerce and Personal Services tend to need more financing than the average ,
according to the VIII report "The financing of SMEs in Spain"
alt hough that does not mean that they can easily access bank loans and credits.
According to this report, in 2018, 84.6% of SMEs that needed
bank financing obtained it, a figure higher than the previous year, but the
percentage of small companies that have been denied their application stands at
fairly similar values compared to a year ago, 5.3% compared to 5.6% in 2017. In
fact, the recent Survey on Bank Loans in
Spain revealed that, during the fourth quarter of 2019, there was a slight
tightening of the criteria concession in all types of financing , both for
large companies and SMEs.
According to this survey, difficulties in accessing
financing are mainly due to higher costs related to the level of capital and
the increased perception of risks . Due to this trend, the number of companies
requesting guarantees or endorsements to access bank financing has increased.
However, the demand for guarantees is not homogeneous. SMEs
operating in these sectors will need to present more guarantees than the
average:
Telecommunications and information society - 21.1%
Hotels and restaurants - 19%
Business services - 18.8%
Construction - 16.5%
The tightening of the criteria to access financing in these
sectors is due, at least in part, to the decrease in expectations about them,
which increases the perception of risk and makes banks look closely at SMEs who
work in those areas. The increase in the
non-performing loan ratio that has occurred during the second half of 2019 also
influences.
Access financing in
2020: What does this year hold?
The Bank of Spain stated that “ expectations for the first
half of 2020 point to a prolongation, generalization and intensification of
these effects ”, which means that SMEs are likely to have more difficulties in
accessing financing.
In any case, remember that with the help of the SGR you will
be able to access the financing you need. With its endorsement you will be able
to access bank financing in a more agile and simple way, obtaining better
conditions in terms of terms and interest rates.