“SMEs are one of the most important engines for the development of the country, that is why BYMA is working hard to provide new and better tools to promote their development and financing through the Capital Market,” they said in a statement.
BYMA highlighted that “in recent times, the Capital Market has been consolidated as an efficient financing alternative for SMEs” in view of the historical difficulties in accessing it, in the context of high inflation that puts pressure on loan rates.
“Historically, Argentina is characterized by having high financing costs as a consequence of the difficulty of accessing it. And if it is obtained, inflation makes the reference rates also high, which translates to a significant percentage of the costs. For SMEs, the scenario tends to become a little more complex: many times they must resort directly to self-financing. In recent times, the Capital Market has been consolidated as an effective financing alternative for this sector, “they said.
According to data from the EPYME platform, more than 8,000 SMEs are registered throughout the country. Santa Fe, Buenos Aires, Córdoba and Mendoza are the places with the highest percentage of SMEs that choose financing instruments such as E-cheq, Digital promissory note, O Electronic credit invoice.
In addition to publicizing the available instruments, the Stock Exchange shared these key points to take into account when looking for financing:
- Define a objective concrete for which financing is needed and the associated variables: what is the dimension of the project, how much money is required, what is the purpose of the financing. For example: generation of working capital, expansion of a plant, obtaining inputs, among others.
- Establish the term financing: short, medium or long term; since there are instruments that allow obtaining funds with different terms.
- Find out about all alternatives of financing available, offered by the different entities, and the associated requirements: rates, times, documentation. And decide based on that knowledge.
- In the case of the Capital Market, the recommendation is to seek advice from an ALyC and / or SGR when defining which is the most appropriate alternative.
How are SMEs being financed through the Market?
According to data from the EPYME platform, since the beginning of 2020, when these instruments were launched, 184,000 E-checks were entered and more than 4,000 electronic promissory notes were issued.
Since June 2019, more than 6,000 invoices for a total of $ 9,000 million have been deposited in Caja de Valores SA for their discount.