The digitalization process and generational change appear as two of the biggest challenges on the horizon of companies. In order to cover these with guarantees, financing from both traditional and alternative sources provided by banks must play a very important role. Three participants at the roundtable meeting held during the day on Monday agreed on this conclusion. «Financial support for business success»Organized by INFORMACIÓN together with Laura Vicente, director of the Valencian Financial Institute (IVF), Gesem Consultoría; José Julián Farrell, Farrell Industrial Materials Manager; and Javier Mira, CEO of Facephi. The roundtable was moderated by INFORMACIÓN Economics editor David Navarro.
The challenges brought by digitalization and generation change in companies, as well as the increase in raw material and energy costs arising from the current economic situation, inflation or decrease in commercial margins, directly affect financing needs, an area in which IVF treatment plays a very important role. «Technological progress challenges you digitize and automate processes. Future financing is a key consideration,” Farrell said. Touching on the importance of capital contribution to the productive fabric of Alicante, Vicente added, “The majority of companies in the province are SMEs that need bank financing.” «We have struck a balance between traditional bank financing and the alternative. There is a lot of fear about going public, but it is a very valid option,” Mira said, discussing Facephi’s specific case.
entrepreneurial spirit
entrepreneurial spirit Alicante province This, emphasized by the roundtable participants, reinforces the importance of financing, especially when it comes to startups. When looked at on a sector basis, it was stated that real estate is less dependent on financing, while industry and services are less dependent. «The real estate has done very well and has no dependencies. The industrial and service sectors are, but they should not be afraid of an economic slowdown, its impact will not be so negative,” said the director of Gesem Consultoría.
The balance between traditional financing and alternative methods was also among the issues discussed. For example, the CEO of Facephi, who announced that his company was no longer a company, did this. emerging startup to a listed company. «We had many conversations to improve our knowledge. We have bank debt combined with market capital. We started with five people, now we are 300 people. “All of this would not be possible without financial support,” he said.
Coincidence
Both Mira and Farrell agree, stating that companies with growth and value are easier to access financing sources. «Financial cost is higher change in interest rates But we don’t have big problems. “When things were going pretty well, we learned that we needed to access financing,” said the Facephi CEO. «2022 was a good year and the first quarter of 2023 continued with this dynamic. Now growth has slowed in the second half and I think it will continue that way in the first half of next year,” added the Farrell executive.
Continuing with his 2024 economic outlook, Vicente noted that financial institutions are more conservative now and there are concerns about how they will react. employment and household consumption. Finally, the contribution made by IVF was once again recognized, especially in terms of the support of SMEs and the cooperation it offers for the expansion of the technology sector and the economic growth of the Valencian Community. Three speakers signed the statement, “More pedagogy is needed to make their contributions known.”