The Institute of Financial Studies (IEF) and Altria Corpo have recently presented the results of the 5th Business Barometer on Fintech and Alternative Financing. This annual study analyzes financial sector trends and expectations regarding credit granting policies and the adoption of fintech solutions by companies.

One of the main conclusions of the report is the perceived improvement in access to bank credit. While in 2024, 73% of companies anticipated a tightening of financing conditions, by 2025 this percentage has dropped to 40%. Additionally, 16% of companies foresee greater ease in obtaining credit, compared to just 4% the previous year. This shift in perspective is attributed to a decline in interest rates and an increased willingness of banks and alternative financing providers to extend credit.

However, alternative financing has not yet achieved widespread adoption among businesses. Although 77% of companies acknowledge being aware of alternative financing providers, only 42% used such services in 2024, a decrease from 48% in 2023. The most commonly used products remain factoring and leasing, while options such as private debt funds or fintech solutions continue to be underutilized by SMEs.

 

Regarding fintech solutions, business awareness and usage have also declined. Only 32% of companies can name fintech providers, and just 12% used these services in 2024, compared to 22% the previous year. Expectations for 2025 are not encouraging either, as only 43% of businesses plan to seek alternative financing, compared to 56% in 2024. All of this underscores the importance of financial consulting firms like Altria Corpo, which connect companies’ financial needs with available fintech and alternative financing solutions.

In summary, while there is a positive outlook for bank credit accessibility in 2025, the adoption of alternative financing and fintech solutions still faces significant barriers.

You can watch the presentation video of the results at this link or by clicking on the image above.

Financing for high-growth companies is a challenge that has not been easy to solve. An innovative solution that has emerged is revenue-based financing (RBF). Through this model, startups and high-growth companies can find funding to develop products or invest in marketing. It can be a much more feasible tool in the form of debt than a bank loan. It is also an alternative to a new round of capital that could dilute and distract the founding team too much.

Revenue-based financing allows companies, especially those with subscription-based models, to leverage their anticipated future cash flows to secure funding. It is a type of loan that is repaid over time; however, instead of fixed monthly installments like those of a typical bank loan, in this case, the payments are usually structured as a percentage of the monthly revenue, and therefore become variable payments that adjust to the business’s income streams.

Advantages of Revenue-Based Financing

Among the advantages of this financing for startups and high-growth companies are:

• The founding team can retain ownership of the company: since equity is not diluted, the founding team maximizes its gains in the event of a future sale of the company.
• It is a viable alternative to the nearly impossible bank loan: for companies still operating at a loss, bank financing is not an option, but this instrument can be.
• It is usually quick and does not require personal guarantees: the founding team saves time on valuations and negotiations with investors.
• There is no need to justify the use of the requested amount: additionally, in debt repayment, flexible payments based on revenue make cash flow management easier.

A growing financing option

This is undoubtedly a financing model that is on the rise. In 2023, its volume was $3.38 billion (according to the Revenue-Based Financing Global Market Report by The Business Research Company). It is projected that in 2024 it will increase by no less than 70% to reach $5.8 billion. Furthermore, this growth is expected to continue, with a CAGR of 64% through 2028, reaching a transaction volume of $42 billion in 2028.

In an economic situation of high uncertainty for companies, it is becoming increasingly clear how important it is to have adaptable and favorable financing solutions for businesses. Revenue-based financing offers the necessary flexibility and accessibility for many small businesses and startups to reduce their financial stress amid a scarcity of credit and capital. As we have seen, it is a very suitable financing option for high-growth companies. It not only provides the necessary capital for growth but does so in a way that is aligned with the financial reality of startups.

f you want to learn more, you can download this article from Harvard Deusto Business Review

In the alternative financing market, the dynamism of some private debt fund managers stands out, leading to increasingly well-adapted direct lending financial solutions for the needs of medium-sized Spanish companies. In this post, we present a couple of proposals that can cover a wide range of financial needs for medium-sized companies:

1. Loans with a term of up to 6 years to finance the development of company growth plans. The amounts range between 1 and 7.5 million euros. It is suitable for companies with more than 2 million euros in revenue, a minimum EBITDA of 500,000 euros, and more than 5 million euros in assets. The two main advantages are the flexibility in the amortization terms, depending on the company’s repayment capacity, and the absence of real guarantees.
2. Loans of up to 12 months to meet any specific liquidity needs, with amounts starting from 500,000 euros. It is designed for companies with revenues exceeding 5 million euros, and no real guarantees are required.

To learn more about the characteristics of each of these solutions, you can contact your Altria Corpo consultant, click on https://altriacorpo.com, or write to corporate@altriacorpo.net.

Do you want to know more about direct lending? In this document published by Altria in the well-renowned ODF  we explain it to you.

CFOs face increasing challenges in corporate financing, which require agile decision-making in an increasingly complex environment. In this context, generative artificial intelligence (GAI) emerges as a powerful tool, revolutionizing how CFOs approach the financing and financial management of their companies.

Generative AI, which specializes in creating new content from existing data, can offer effective solutions for a wide range of financial needs. One of its most notable applications is the automation and optimization of financial planning. By analyzing large volumes of historical and real-time data, generative AI can identify patterns and trends that are not evident at first glance. This allows CFOs to develop more accurate financial forecasts and make informed strategic decisions.

Additionally, generative AI facilitates financial risk management. Traditionally, CFOs devoted a significant amount of time and resources to assessing the risks associated with different investment decisions. Now, with AI’s ability to analyze complex datasets and generate predictive models, CFOs can identify potential risks more accurately and quickly, and formulate more effective mitigation strategies.

In summary, generative AI is transforming the role of the CFO, enabling more informed and efficient decision-making, and redefining corporate financing. At Altria Corpo, we understand that adopting advanced technologies like generative AI is essential to remain competitive, and we are implementing it both in internal processes and in improving service to our corporate clients and financial suppliers.

If you found this topic interesting, you can find more information by reading this article from La Vanguardia: Los directores financieros ganan protagonismo con la IA generativa.