April 25, 2018
What are SGRs and how can they help SMEs to obtain financing?
Los Grobo SGR among the 3 main Reciprocal Guarantee Companies, according to the Ranking of the PyME department of the Bolsa de Comercio from Argentina

The search for guarantees from non-traditional sectors and new financing instruments for SMEs boost the activity of mutual guarantee societies. How much can they grow this year?

If the economy consolidates this year on the ascending route that, although irregular, began to draw in 2017 - a scenario that some see with more optimism than others -, SMEs will be a fundamental piece in growth. And the credit for them, the link that can not be missing. In this context, the Reciprocal Guarantee Societies (SGR), those communicating nexuses between small and medium entrepreneurs, and the owners of capital, are called in 2018 to play a key role.

There is optimism and good projections in the sector. The SGR system as a whole currently assists approximately 13,000 SMEs, of which 4000 were incorporated into the modality during the last year. Thus, the total volume of guarantees at stake exceeds $ 30,000 million. The five main players in the sector, according to the ranking prepared by the SME department of the Stock Exchange, are Garantizar (linked to Banco Nación and Banco Ciudad), Acindar Pymes, Los Grobo SGR, Federal Guarantee and Inter-Guarantees.

"While we note that all sectors of the economy had growth in relation to the SME investment index, which measures, from total investments, the percentage destined to productive investment goods as opposed to investments destined to working capital, the sectors that had the highest growth rates were construction, industry and sectors related to agribusiness ", describes the scenario Sabina Ozomek, General Manager of Garantizar SGR. Garantizar owns 70 percent of the market, assists some 9000 SMEs and during 2017 it grew 68 percent with respect to 2016. Regarding guarantees issued, it reached $ 10,000 million, with an 80 percent growth.

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Published by: Revista Apertura (Argentina)
Automatic translation from spanish.

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