Our colleague Kang Lin Chen, Manager in our Madrid office and specialized in Debt Advisory and Restructuring operations, participates in the latest issue of Estrategia Empresarial with a column in which he explains and reflects on the rise of Alternative Financing as a possible solution for companies.
We highly recommend to read Kang’s article to learn why this phenomenon is particularly relevant as a result of the restructuring of the banking system, the tightening of the regulatory framework applied to traditional institutions and the growing need to diversify sources of business financing.
In recent years, alternative finance funds have established themselves as key players in the Spanish financial landscape. This phenomenon has become particularly relevant as a result of the restructuring of the banking system, the tightening of the regulatory framework applied to traditional institutions and the growing need to diversify sources of business financing.
In this new context, direct lending funds have emerged as an agile and flexible solution to meet the financing needs of solvent companies that, however, do not fit within the criteria of traditional banking. These vehicles, managed by specialised professionals, offer tailor-made financial solutions, with adapted structures, personalised deadlines and faster decision-making. This ability to adapt makes direct lending a strategic partner for companies in their growth and consolidation plans.
In addition, these funds usually have a wide range of diversified products designed to meet different business needs: from capital investments (CAPEX), working capital financing, organic and inorganic growth, to debt refinancing processes, among other particular situations.
In the case of Spain, where small and medium-sized enterprises represent more than 99% of the productive fabric, access to financing is crucial for their development. Direct lending funds not only fill this gap, but also act as a driver of economic dynamism by promoting investment, boosting innovation and favouring job creation. They also contribute to reducing the historical dependence on bank credit, expanding and diversifying the financing options available.
In conclusion, direct lending funds have ceased to be a marginal option and have become an essential complement to the Spanish financial ecosystem. Its consolidation represents an opportunity to strengthen the business fabric and provide it with greater resilience in the face of future economic challenges.