Medium-sized companies are entities with certain characteristics and with limits in terms of their size, volume of business and personnel set by the States in which said companies are established.
They are independent entities with great entrepreneurial spirit that predominate mainly in the commercial sector, since the limitations set and the lack of investment do not allow them to access the industrial sector.
The business network of medium-sized companies in Spain
As many of you will already know, more than 99% of the country’s business fabric (99.8% according to data from the last report on SMEs produced in 2015) is made up of small and medium-sized companies. These represent nothing more and nothing less than 65% of GDP and 75% of total jobs for the State. These data place small and medium-sized companies in the first place in terms of the percentage of SMEs, even in Germany and the United Kingdom, which, in the same way as in the Spanish case, show a percentage of SMEs close to 100%.
Before continuing to delve into the different economic factors of small and medium enterprises, we will differentiate between them. The number of workers is the determining factor to know what type of company it is, so we will talk about:
- micro companies , companies that have a number equal to or less than 9 workers.
- Small businesses when the number of workers is between 10 and 49 workers
- medium enterprises when it exceeds or equals 50 workers and does not exceed 249.
Once this fundamental differentiation is made, we can see that our SMEs have great export potential and that there are already many companies that are expanding their market in different countries.
Another of the fundamental factors and in which Spain seems to be at the tail compared to other countries, is the innovation of its processes and the implementation of technology in its companies. This directly affects the financing since, as we know, thanks to the evolution of the Internet, online investment and financing platforms have appeared that make it possible to request loans for medium-sized companies and say goodbye to the financing problems they face as these types of companies very dependent on the banks and banks (with very high interest rates)
Loans for medium businesses
Derived from the above and referring to the data released in recent years regarding the financing of medium-sized companies, we find that despite the fact that financial institutions grant a larger amount of loans for medium-sized companies every day – in comparison With those approved during the financial crisis – there are many problems to access it.
What is this about? In the first place we find the distrust derived from the financial crisis itself by banks and savings banks, which have tightened the conditions for granting this type of financing for medium-sized companies.
Another point that we have already briefly referred to in the previous point is the lack of adequate technology for the evaluation of this type of companies.
And finally, one of the most important reasons for the approval or not of this type of private financing is the belief by banks that medium-sized companies are at greater risk.
The conclusion that we can obtain with this is the following one: the increase of the restrictions to determine the approval of a loan for medium-sized companies, has caused that the conditions harden much and that the interest rates were raised still more generating a dependency of the medium businesses to these financial entities.
Crowdlending as an alternative to banks for medium-sized loans
Although the financial system is not up to date in terms of technology, there are many companies that are. Companies like Good Finance who have seen on the Internet the perfect ally to put into operation investment platforms that allow the financing of SMEs with credit needs.
Now, medium-sized companies should look for more agile financing alternatives with less difficulties that allow them to continue with their projects and that is where crowdlending platforms operate.
Good Finance is a Crowdlending company that acts as an intermediary between companies that seek financing to carry out their projects and private investors who want to lend their money.