The process of going digital and navigating generational change stand out as two major challenges on the horizon for many companies. To address them with solid guarantees, both traditional bank funding and alternative financing options play critical roles. This viewpoint was echoed by three participants at a Monday roundtable organized by INFORMACIÓN, alongside partners including the Valencian Financial Institute (IVF), Gesem Consultoría, and executives from the business sector. The session was moderated by the Economics editor of INFORMACIÓN, David Navarro.
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The discussion underscored that digital transformation and workforce generational shifts, together with rising raw material and energy costs driven by current economic conditions, inflation, and squeezed commercial margins, directly influence financing needs. Financing for technology adoption and process automation emerged as a pivotal topic. One participant noted that technological progress forces companies to digitize and streamline operations, making future financing a crucial consideration. The Alicante region’s business fabric relies heavily on bank financing, and the emphasis on balancing traditional lending with alternative sources was highlighted. While there is apprehension about public listings, they remain a legitimate option for growth, as illustrated by a case from Facephi.
entrepreneurial spirit
The roundtable stressed that an entrepreneurial mindset in Alicante province reinforces the essential role of financing, particularly for startups. Sector-specific insights showed that real estate tends to be less dependent on financing, while industry and services carry higher financing needs. The Gesem Consultoría director pointed out that real estate has performed strongly and remains relatively resilient, whereas industrial and service sectors may face more exposure but should not fear an economic slowdown, as the impact may be mitigated by prudent financial planning.
The balance between conventional financing and alternative methods was another key theme. Facephi’s CEO described the company’s evolution from a startup to a listed firm, emphasizing the combination of bank debt and market capital. The journey began with a small team and grew to hundreds of employees, a growth trajectory made possible by supportive financing and the willingness of investors to participate in the company’s expansion.
Coincidence
Both the CEO and the finance executive agreed that companies showing growth and value generally find it easier to secure financing. Rising interest rates influence financial costs, yet major obstacles were not seen as insurmountable. The Facephi leadership recalled that 2022 proved to be a strong year, with the first quarter of 2023 maintaining momentum. Although growth has slowed into the latter part of this year, expectations point to a stable trend in the near term, with early indicators suggesting continued gradual expansion.
Looking ahead to 2024, the Valencian region’s financial outlook remains cautious. Institutions are exercising greater prudence, particularly regarding employment trends and household consumption. The IVF’s contributions were acknowledged again, especially in supporting SMEs and fostering collaboration to expand the technology sector and drive regional economic growth. Three speakers called for clearer communication about these efforts to ensure their impact is understood and appreciated by broader audiences.