Levante newspaper has published an article by José Roca, Managing Partner at Kaizen Consulting, titled “The Last Train of ICOs.” This opinion piece analyzes the financing problems currently faced by small and medium-sized enterprises (SMEs) as the final ICO loans, intended to support companies during the economic situation resulting from the pandemic, are being signed.
In the article, published on February 18, 2022, in the print edition of Levante, José Roca explains the main difficulties SMEs are facing in securing financial liquidity. In April, the grace periods for state credit operations will begin to expire, and many companies will have to start making their first payments. Access to traditional bank financing has tightened: “In the current landscape with fewer and fewer Spanish banks, which will further withdraw liquidity from companies, businesses have no choice but to turn to new financiers and new financing methods to meet their liquidity needs.”
José Roca points out in his article that “alternative financing is increasingly a broader and more accessible option for SMEs. Outside the traditional banking circuit, the options multiply, and tailored financial solutions can be found for any company, regardless of its size, sector, or situation. An added advantage is that in many cases, access to financing is achieved through more agile processes, fewer guarantees are required, and there is flexibility in terms. All that is needed is adequate advice to uncover the right solutions.”
The conclusion of the text is definitive: “Today, more than ever, not relying exclusively on banks and ICOs can be a decisive advantage for companies that need funds to move forward and fulfill their business plans. The last train of ICOs has just departed; June is the final stop to get on, coinciding with the insolvency law, which will bring a wave of bankruptcies. Fortunately, we can take measures now, anticipate what is coming, and diversify to have new financiers capable of taking companies to the next station.”
Click on this link to read the full article in the online edition of Levante-EMV.
