The newsletter from Felac, the Spanish Federation of Associations of Hospitality Machinery Manufacturers, Collectives, and Related Industries, has published an interview with José Roca,founding partner of Kaizen Consulting, addressing the financing needs of companies in this sector. Under the headline “In addition to traditional banking, there are multiple financing option,” José Roca responds to entrepreneurs’ concerns at a time when “SMEs have access to a quarter less bank financing than before the pandemic” and “the average cost of new bank loans is the highest in the last 10 years.”
Collaboration Agreement with Felac
They explain, “given this scenario of credit restriction and rising costs, the Spanish Federation of Associations of Hospitality Machinery Manufacturers, Collectives, and Related Industries has reached a collaboration agreement with the consultancy Kaizen Consulting to offer financing acquisition services to the companies integrated into this collective.” In the interview, our managing partner explains that relying solely on traditional banking today, a company “will not be maximizing its financing options and, consequently, will not be ensuring sufficient liquidity to fulfill its business plan… The financing world is vast, and we encounter a wide range of options that go beyond not only foreign traditional banking but also alternative banking. These financiers offer the same as traditional banks and, moreover, many other tailored options that companies need, both in terms of terms, amounts, and guarantees as well as conditions.”
José Roca details how “today, financing for each company can be tailored almost precisely. The key lies in knowing the market very well, what each financier offers, and what their requirements are. With that market knowledge, at Kaizen Consulting, we advise each company and find customized solutions to their approaches and needs… Today, a company can find financing for everything it needs, but it must know how to reach the right financier and present its project well. This is the basis of our advice.”
Innovative Financing Solutions for the Sector
In the interview, he also emphasizes the innovative and flexible solutions offered by the financial market, such as rentback and leaseback: “They allow monetizing the balance sheet by selling virtually any asset of the company and subsequently leasing it back to the buyer: two ways to generate liquidity for any purpose that is not listed in the CIRBE nor considered indebtedness: these are operations that are specifically designed and have a very wide range of amounts.”
For the hospitality equipment manufacturing industry, which is an exporting sector, José Roca explains that “any type of equipment always has value, and consequently, using that value to obtain financing is a safe option that is used in Spain, but especially abroad, and we take advantage of it by carrying out financing operations on new or even second-hand assets. Again, there is a lot of flexibility here to play with amounts, residual values, terms, and much more. Additionally, it is also very interesting to offer manufacturers options to provide financing solutions to their customers. It can be a differential advantage, which always helps them to have a higher percentage of success in their sales.”
The founding partner of Kaizen Consulting emphasizes that the new financing options are open to all companies, regardless of their size: “Hence the importance not only of becoming aware and getting down to work but also of knowing the options well and being able to take advantage of as many as possible in Spain and internationally. At Kaizen Consulting, we are fully aware of the needs of the hospitality equipment sector. That’s why we closely monitor all the financing possibilities offered by the market for a sector like this, which requires a lot of attention to remain competitive and must seize all available opportunities.”
Read the full interview from this link.
