Warning about hidden erosion of Spaintrend companies: the value of the supporting companies is not only the amount of the loan, but the time of payment is important.
Sadaj Spandrand, a lecturer at the University of Tehran and the General Manager of Retail Banking and Small Business of the National Bank, in an interview with Ektazad News:
The most important threat to the survival of companies is the lengthening of the gap between today's expenses and future revenues. This gap is sometimes caused by the lack of currency and delays in providing inputs, sometimes by energy restrictions and sometimes by a decrease in the purchasing power of the customers; Therefore, a single threat cannot be defined for all companies.
SMEs are more vulnerable because they have limited cash reserves and lower bargaining power. A small supplier that buys the input in cash but receives the sale funds late, even with a profitable order, may go to the stop line, and the debt structure and liquidity management will change the fate of the units.
Erosion of production capacity does not always begin with a clear shutdown; Sometimes the company postpones repairs and renovations and loses experienced personnel. Inflation not only increases the price of the input, but also increases the financial need to repeat the same production, and working capital requires a deeper investigation.
The value of the support depends not only on the amount of the loan, but also on the date of its arrival; A company that has been around for a few weeks is not in the same situation after a few months. The log of each batch should show the path of the request to the result, and tools on the chain should not hide the cost of credit in the weakest link.
Credit for consumer purchases does not increase the real income of the household and if the payments do not match the ability to pay, the pressure will be transferred to the following months. With the departure of skilled workers, the company loses part of its production memory, and the units produce inputs, energy and orders as credit arrives.
Read the full text of this conversation on Akhtaznews.