Finance Monthly December 2019 Edition

ECONOMIC DOWNTURN IN EUROPE: WHAT ARE THE AVAILABLE FINANCING OPTIONS? EU economic growth is stalling. The IMF has already halved its 2019 growth forecast to 1.2% compared to last year. 1 Such sluggish growth is likely to have a very negative impact on the region’s SMEs - not just because sales and revenue growth will falter, but because payment cycles are likely to lengthen, putting an additional squeeze on SMEs, which play an important role in European economies. Given this backdrop, one of the core factors that could help them cope with this gathering storm is improved access to finance. SMEs have already suffered as a result of banks restraining their lending to small businesses after the Great Financial Crash. However, alternative financing options have emerged - the factoring and broad asset-based finance (ABF) market, for example, is one option which could offer SMEs the prospect of staying buoyant and help the region through these challenging economic times. Edwige Lemercier White Regional Director for Northern Europe of HPD LendScape 18 www.finance-monthly.com FINANCE & BUSINESS - ECONOMIC DOWNTURN IN EUROPE