Financing For Small And Medium Sized Enterprises
2021-02-13 | by CusiGO
In December 2019, Santander bank announced the launch of tresmares, a platform designed to provide enterprises with alternatives to traditional financing, from private or personal debt to equity arrangements. In order to launch the project, it reached an agreement with a management team specializing in small and medium-sized enterprises. The team is led by Borja P é rez arauna (Chairman) and Borja oyarz á BAL (Chief Executive), who have been in charge of the qualitas equity fund since 2003.
“In our careers, we’ve realized that in finance, people are talking about products. We hope to break this situation, establish long-term partnership with customers and provide you with the necessary funds at any time. Our model subverts tradition by providing entrepreneurs with tailor-made financing rather than physical products, “oyarz á BAL concluded.
Tresmares uses market intelligence models to identify the sectors with the greatest growth potential in the Spanish economy, as well as the leading companies in these sectors. The platform is mainly aimed at SMEs with operating gross profit margin (EBITDA) between 1 million and 7 million euros. Currently, the model has identified 105 high potential trends in different industries, such as genomics or organic fertilization, and tracked about 1200 companies. “When we find a small and medium-sized enterprise with leadership, we will sit with them instead of giving them a specific financing plan, but make a business plan to see what they may need, and then we will discuss specific solutions. Sometimes it takes us a year to get help. “It could be a simple support for its operations and other sometimes more complex capital structures,” oyarz á BAL said
The mission of tresmars, though it has access to customers’ capital, is mainly accompanied by the transfer of management power to small and medium-sized business owners. However, they do provide them with advice on trade strategy, procurement system or internationalization. They believe that the latter is one of the main obstacles for SMEs in Spain to expand their scale: “after the financial crisis, enterprises began to export, but more of it was out of business I believe it. We have to be more open. ”
According to ayalzabar, the arrival of the European economic reconstruction fund presents two challenges. “In the long run, we need to have a debate away from partisan political tensions about which country we want to leave our children in and what sector Spain has to be or not be. In the short and medium term, European currencies face the challenge of changing our financial system. We have a highly banking model, and it’s easy to intervene through debt, but the huge deficit of our business ecosystem is capital injection. We estimate that Spain needs between 30 billion and 40 billion euros in additional capital, “the executive said.
The outbreak of the earthquake coincided with a pandemic. However, by 2020, they have invested about $300 million, and their balance sheet is expected to be close to $600 million by 2021. The profitability of platforms is related to the different products they offer. “Among the products with bank profitability, the proportion is between 2% and 3%, while the profitability of long-term products increases between 200% and 300%, while the profitability of capital products is higher.”