Non-performing loans granted by financial institutions operating in Spain to families and companies closed the month of March at 8,83%. In any case, it is one of the lowest levels of the last five years. Even reducing it by 0,32% compared to the previous month. To the point that it indicates that delinquency is under greater control if we stick to these movements in the monetary flow. Corresponding to a Spanish expansive phase.
This is evidenced by the latest data provided by the Bank of Spain. In which it is found that unpaid credits to banks, savings banks and cooperatives were reduced during the past month of March up to 111.764 million euros. In practice, it assumes that this delinquency rate was 3.320 million euros less in relation to the previous month. With a noticeable improvement with respect to the data published since 2011. Reflecting is that unpaid debts are not as important as in previous years.
These data on solvency levels of Spanish families and companies it is of such relevance that it constitutes a very reliable indication of the arrival of corrective processes in the country's economy. To the point that it was one of the main warnings that occurred in the mid-2000s about the outbreak of a deep economic crisis. Where the delinquency rates reflected in unpaid loans to banks, savings banks and cooperatives reached levels of maximum intensity. In contrast to the annual movements that show much more relaxed margins. Because the greater the delinquency, the greater the risk of entering into a corrective process of the economy, as has happened historically.
Hardening of the delinquency law
Despite the good data reflected from the Spanish issuing bank, it is not an obstacle to the fact that the regulations have been tightened to prevent these movements in the monetary flow from being able to reach more companies or people. Because in effect, the Popular Party has proposed an initiative in Congress whose main objective is to fight against "the intentional delay of payments" with respect to creditors and suppliers, fundamentally. With the consensus of various political groups that see an opportunity in the development of this measure.
Not surprisingly, this is one of the most relevant causes for dissolution of companies. As a result of the increase in the financing costs of companies and that lead them to incorporate greater losses in their income statement. To the point that many of them have no other solution than to close their line of business. With the corresponding defaults between suppliers or customers.
Fight prevention
To avoid these scenarios so little desired by businessmen, the national executive hopes that this non-law proposal will help raise awareness among the population of this serious problem with regard to the formalization of payments. For this, the design of informative campaigns to combat delinquency, as an instrument of deterrence. Like the need to meet the deadlines signed in the contract. So that with its correct execution a more efficient functioning of the economy is generated and can benefit the productive fabric of the country.
These measures are complemented with a system that provides more and better information on which the actions of the users of this service can be based. And where all the systems that have recovery or fraud as a point of reference also have a special incidence. But also so that it influences in a very decisive way the valuation of a company. To carry out any type of corporate operations or simply to detect any anomaly regarding the status of its liquidity in the accounts.
Solutions for companies
In this sense, they can also benefit from a wide range of alternatives that are available to companies. So that they have all kinds of solutions to carry out their business or professional activities. Basically through information-based supports that will be of notable help to shape their decision-making at any time and in any situation. Equifax, a leading company in credit information solutions for companies and consumers, currently has the ASNEF Empresas service.
It is a highly professional service that is fundamentally characterized by the prevention of these situations that small and medium-sized companies can go through. To the point that it incorporates an alert system that anticipates any change in the solvency of customers. Providing information of special relevance on the levels of liquidity and solvency that a company or self-employed workers may have at any time. Also with regard to other more common situations. For example, the debts contracted with public bodies or even any incident that could be presented in the companies in the Mercantile Registry.
Against your competitors
The dynamism of the sector has generated that other needs of companies are taken into account. Because in effect, there are also innovative marketing systems, such as the so-called Riskview. In which the delinquency situation is especially taken into account. But in this case, adding the overall behavior of the entity vis-à-vis its competitors in their respective sectors or lines of business.
To achieve greater effectiveness in the procedure, they employ as their main strategy taking into account the most important business indicators. So that in this way, the reliability is higher than through other measurement systems. One of the effects of this strategy is that the most necessary channels are created so that entrepreneurs can make the right decisions in every moment. Precisely through the use of information, with the most advanced technological means.