Argentina’s difficult economic context complicates the businesses of Small and medium businesses (SMEs). The lack of inputs, price controls and other obstacles make up a panorama that ends up affecting its main focus and growth.
However, on the other hand, we can mention some positive aspects, such as Vaca Muerta, lithium, the countryside, tourism, mining…endless opportunities so that the country can finally take off and leave behind a crisis that has taken a long time.
In this scenario, whoever takes office as President this Sunday must once again generate an adequate environment so that companies stop seeing every day how to overcome a thousand and one problems to focus on how to be more productive and generate value.
For this, financing will have a very relevant role, given the importance of entrepreneurs being able to access adequate lines to be able to grow again and precisely, it is in this sense that the State must seek mechanisms so that companies can access subsidized lines.
From the side of the SMEs, must be prepared to access these credits and opportunities. For this, it is key to have qualifications in different Reciprocal Guarantee Companies (SGR) that will facilitate the implementation of the credits.
One of the main advantages that SGRs have is that they can qualify based on a future flow and be more flexible when analyzing each case.
The objective of every SGR is to facilitate access to credit SMEs through the granting of liquid guarantees. That is, the SGR will not give the credit, but will be a guarantor against the creditor. Once the guarantee has been implemented, the best alternative will be sought to “monetize” it, with the capital market often surpassing banking alternatives.
There are more and more SMEs that discount their checks, Electronic Credit Invoices and Stock Promissory Notes through the capital market, achieving very competitive rates.
The premise is to compare rates, and at all times implement financing where it is most convenient, since the capital market is complementary to the banking system.
Opportunities arise from every crisis and I hope there will be many in the coming years for the SMEs Argentina.
Corporate Director of PPI.
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