In the last year, financing for SMEs and especially for micro-SMEs has fallen significantly.
SMEs face a set of financial challenges, overcoming which does not guarantee access to credit, but does greatly facilitate it.
Post content
Dependence on certain sectors
Improving project planning and presentation
Risk analysis
Internationalization
Digitalization
The technological component of the goods and services offered
Access to specialized training and advice
Proper treasury management
Improving the quality of accounting and financial information
Investments that serve to update the business
The Financial Stability Report of the Bank of Spain of November 2018 indicates that the financing granted to SMEs has fallen by 7.2% in one year. In the case of micro-SMEs, the fall exceeds 14%. In addition, micro-SMEs are increasingly concentrating a greater proportion of the financing granted to SMEs.
Although the volume of financing for SMEs depends on many factors, such as the economic situation or the state of the financial system, part of the responsibility for turning the figures around lies with the actions of the SMEs themselves that facilitate their access to financing.
1.Dependence on certain sectors
A significant proportion of entrepreneurship in Spain is concentrated in sectors such as construction and real estate, which are more vulnerable to the decline in credit . Part of SMEs' access to credit depends on the development of more entrepreneurship in other sectors in addition to these.
The real estate and construction sectors are particularly life insurance email list vulnerable, firstly because they are businesses that often require long-term investments, often with few projects in the portfolio on which they are excessively dependent and a significant need for liquidity , since they have to make payments regularly and their collections tend to be concentrated.
Moreover, these are sectors that depend not only on their own credit but also on that of their clients. Therefore, vulnerability increases sharply in times of crisis or when there is simply a certain probability of a slowdown in the sector.
2.Improving project planning and presentation
Unfortunately, many good ideas are lost due to a lack of planning . In order for someone to grant credit to an SME, they must believe in the viability of their project. But trust is not usually free; good planning must be demonstrated .
In fact, a good business plan covers several very important missions . On the one hand, in order to prepare it, many activities are carried out that contribute to giving solidity to the project , such as, for example, the analysis of the internal and external environment, the assessment of expectations and risks, the setting of objectives, their quantification, the preparation of forecasts and schedules, etc.
