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The Benefits of Financing 4.0
The Benefits of Financing 4.0
Time icon14 December 2018, 11:12 am

Creditshelf, a Fintech in Germany, conducted the research titled 'Industrial SMEs ad Financing 4.0.' The research was done on 244 financial decision makers including board members and managing directors. The study was accompanied scientifically by Prof Dr Dirk Schiereck, Head of the Department of Corporate Finance at TU Darmstadt. The research established that small and medium enterprises (SMEs) are more willing to provide real-time data to access credit.

 

The Findings

As SMEs become more and more open, almost all businesses can now lend an investment in this way. Companies can now get fast laws without too many terms. According to the study, the openness to financing 4.0 has increased from 55 to 92 per cent.

In 2017, only 77 per cent of the companies that were involved in the study recorded real-time data. In 2018, the number has increased to 89 per cent. Industrial SMEs are developing towards Industry 4.0. According to Dr Med. Daniel Bartsch, a board member and founding partner of Creditshelf, SME are using real-time data from production because they have found it to be beneficial.

For 90 per cent of the businesses that were involved in the study, a financing model where credit terms come from past data and collateral (not entirely) is most attractive. They should, however, use data that they can verify whenever necessary.

 

The Finance Function in 4.0

The business environment continues to change as organisations continue to adopt new technologies. The finance function now addresses the following issues.

  • How can digital technologies affect the finance operating model?
  • Who is needed for future finance?
  • In what way does finance communicate eh value of the company's production to stakeholders?
  • How can this affect the size or shape of finance?
  • How can reporting change?

 

Conclusion

Creditshelf's COO suggests that SMEs expand their financing options. He advises against depending on traditional financing and the adoption of Industry 4.0 technologies.

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