The fintech Arex Markets has reached a strategic alliance with Sage, an expert company in business management technology. It is a commercial agreement in Spain of the organization, which is dedicated to offering alternative financing solutions for SMEs based on technological innovation and data integration.
As of now, more than 10 thousand Spanish SMEs currently served by Sage may, if they wish, access this service through the Sage ISV Champion software. Once in the system, SMEs will be able to choose, in a totally flexible way, which invoices they want to finance with Arex to receive the money in their account in less than 48 hours and protect themselves from the risk of non-payment.
In the words of Perttu Jalkanen, Co-founder of Arex: «For us it is essential to count on the Spanish market with the support of an international benchmark in the industry like Sage. The important thing is not only its consolidated user base, but the innovative mindset it has and the joint vision that we share. Their experience and powerful results in other countries supported by the good data obtained, make them a good partner to be able to offer our network a financing alternative that has not yet existed in the country ».
On the other hand, Javier Quintana Ríos, ISV and channel business development manager at Sage in Spain, adds: “For Sage, having Arex offers an advantage for our clients who want to access these types of services in a much easier way. It is a service that offers quick liquidity to SMEs and is closely aligned with our vision. Therefore, this agreement allows us to continue completing our service offering for companies and represents an important technological alliance that helps finance and grow Spanish SMEs ».
Access to finance
The alliance between both entities occurs in a context marked by the concentration in the banking sector, where the capital and solvency requirements of banks are increasing. These conditions represent an important obstacle when it comes to being able to offer financing to small and medium-sized companies, especially in the current critical moment marked by Covid-19. According to data from the employers’ association of small and medium-sized companies, Cepyme, the crisis has taken over 44,639 SMEs and, as of July 2021, only 60% of the business fabric prior to the pandemic has recovered.
Liquidity and long payment terms are two of the biggest barriers to growth for most small and medium-sized businesses. Typically, payment terms are between 90 and 120 days for a private company, but the situation is even more complicated for a public sector customer, who has payment periods that extend up to 350 days in some cases. “Until now, the only possible solution was to ask the bank for financing services, but sometimes it became a long and complicated process and at too high a cost for a less innovative, flexible service adapted to your needs”, Jalkanen explains.