The Levante newspaper published an article by our managing partner, José Roca Barrachina, in its Sunday, January 17 edition, analyzing the liquidity and financing problems many companies face amid the current health crisis. «What Will Happen After the ICOs?» is the title of this reflection, advocating for the professionalization of financial management in SMEs as the best recipe to combat uncertainties: «In unpredictable scenarios like the pandemic, professional planning is necessary because many SMEs have succumbed to this crisis due to the absence of a financial plan that anticipated difficulties and could have saved them. Today, there are 80,000 fewer companies in Spain than a year ago, and 99% have fewer than 50 employees.»
This opinion piece, published in the Economy section of Levante, highlights the situation of Spanish SMEs, which «are the ones that have requested the most bank credit in the eurozone: 48% have resorted to loans, bringing us to levels seen during the 2009 crisis. Most have increased the amounts and maturity periods of their credits. This provides short-term relief for cash flow and has guaranteed the survival of many companies, but it comes at the cost of indebtedness and does not guarantee their future viability.»
José Roca believes that ICO credits, «as well as the new regulation allowing the postponement of bankruptcy filings, gloss over a very difficult business reality: half of the companies recorded losses last year and 40% have financing difficulties.» In light of this, he suggests that the support of third parties «to professionalize the financial management of SMEs is an urgent necessity to face the current situation. Forecasting in this field is key to being able to deal with the current situation and unforeseen crises. Additionally, it is vital to understand how to maximize financing options in a banking concentration environment like the current one, and there are many options both in traditional banking and the increasingly less unknown alternative banking.» The managing partner of Kaizen Consulting advocates for the professionalization of financial management in companies as the best tool to help entrepreneurs overcome the current crisis. Do not hesitate to contact us for any financing inquiries.
You can read the full article in the digital edition of the Levante newspaper via this link.
