We share the interview conducted by esRadio with our collaborator Roberto Alonso, Interim Manager, in which he presents his vision on alternative financing with Inversa Invoice Market.
You can listen to the full interview here:
(It's in Spanish, sorry for the inconvenience)
In addition, we have transcribed the part of the conversation regarding alternative financing:
Interviewer (Dr. Ignacio L. Balboa): You mentioned a keyword that many people are very afraid of, especially in small and medium-sized companies - and what about companies where there are freelancers -, which is the financing chapter. Everyone thinks that when you need money you go to a bank and… well, if you put up certain guarantees, maybe they'll give you a loan. But there are alternative financing formulas, right?
Roberto: Yes, we are implementing alternative financing formulas in the companies with which we have contact. In fact, we work a lot with a Galician company called Inversa Invoice Market, which works in advance of invoices and in something that is super interesting. Very large companies are doing it but it is not reaching the medium-sized ones yet: it is supply chain financing, let's call it confirming. It is a system by which the company can make advances to its suppliers. In other words, the ideal in a company is to charge as soon as possible and pay as late as possible. Fine, but within that, if I can offer the suppliers in exchange for a ...
Interviewer: A discount, of course. About the early payment of a lifetime, right?
Roberto: Exactly. If the supplier can collect early, that supplier does not have to resort to bank financing to collect its invoices. So if you have bank financing, great. But we all know that before banks tried to take 100% of the business, and now overnight they can reduce our risks, or they can ask us for additional guarantees that we cannot or should always give. So it is highly advisable to first inquire about the alternative financing options available. I can also anticipate that very soon we will organize with the new Nordés club, Business Club of La Coruña, a conference on this topic: on alternative financing. Thus, entrepreneurs, companies or agents can approach and see first-hand some of the alternatives that may be available to them to diversify in financial risk. And also to get cheaper financing. Logically, when we have no more financial options, competition is stimulated and costs are optimized. And one more small reflection: I, who am very in contact with the Galician business fabric, see that we are, in general, making great progress in all aspects related to marketing. Many companies are starting to work in the right direction in digitization. But we are left with a pending issue, which is the financial optimization of cost control, margin control and optimization of financial resources. I believe that there is still a long way to go, it seems that entrepreneurs are not excessively sensitive to these issues, and it is very important to have a cushion of financing capacity to expand the business or if there is an unforeseen circumstance that may happen to us, such as a default or a sudden drop in sales as happened last year with Covid.
Interviewer: For example, they close your business, and now what do you do?
Roberto: Sure, we have a drop in sales, suddenly we lose income and what financial cushion do we have to endure? Well, that's where a good financial forecast is very important.
Interviewer: Hey, by the way, is it November 18 when you are going to organize this seminar at the Nordés Club, right?
Roberto: Yes, yes, the date has already been confirmed. They will open their doors at the end of this month and it is one of the first events that we will organize there. On November 18, which is Thursday, in the afternoon to be able to make it compatible with the workday.
Interviewer: Good. After such a long time without being able to meet the business fabric of A Coruña, come on, let's go.
Roberto: Well, I hope people come from all over Galicia (laughs).
Interviewer: For sure, man!
To end the article, we recall the event mentioned in the interview.
On Thursday, November 28th you have an appointment at Nordés Club Empresarial in A Coruña, which will start at 6:00 p.m. Two hours are planned for the exhibitions, and one more hour for the discussion with questions. The format will be round table.
The following topics will be covered:
- Public support for business financing.
- FinTech proposals for business financing.
- Investment funds.
- A real example. A company that regularly uses alternative financing.
See you there!