The coronavirus pandemic broke out by surprise in all countries and, in addition to causing a major health crisis, also led to a complex economic crisis. Business closures, layoffs, redundancies... Confinements and health measures caused the economy to suffer, but thanks to financial measures initiated by governments and good management by companies of their working capital financing , such as the increased use of confirming, many companies were able to stay afloat.
Confirming grew 4.46% in 2020
Data from the Spanish Factoring Association (AEF) indicate that confirming activity grew by 4.46% in 2020 to €93.54 billion, and also grew by 1.89% in the first half of 2021 compared to the first half of the previous year.
It seems that this growing trend confirms the usefulness that companies find in this product as a means of financing and strengthening the relationship with suppliers.
The data on the growth of the use of confirming in the Spanish economy during the year 2020 are a reflection of the importance of the existence of entities such as Finalbion for the future of the business fabric.
The importance of the existence of non-banking entities
2020 and 2021 are very turbulent years and the panorama has changed for everyone, and in the context of corporate financing there have also been changes of particular relevance that will have an impact in the coming years, and alternative financing or complementary financing entities have been and will be a fundamental pillar to support the viability and new growth of many companies. As in the case of Finalbion, granting confirming factoring lines and treasury loans with no impact on CIRBE to European companies for more than 2,100 million in the last 5 years.
