Elkargi consolidates 4 years of growth of over 20% and makes its commitment to financial solutions with companies in mind a reality

In 2022, Elkargi has financed almost 3,700 operations for a value of 455 million euros, a growth of 23% compared to the previous financial year

Consolidates its growth, through the diversification of solutions for medium-sized and large companies in growth, with close to 100 million in financing

It promotes, with particular success in Gipuzkoa, financing for start-ups, with up to 7 million through the Basque Government’s ‘Aurrera’ programme

Almost 55% of the amount corresponding to more than 3,700 financing operations, has been earmarked for investment projects

During the past 2022, Elkargi has financed operations for more than 455 million euros, which means a growth of 23% compared to the previous financial year with almost 3,700 operations registered. A figure never before reached by this entity, if it were not in response to a crisis, such as the recent pandemic of 2020 or the financial crisis of 2009.

This figure is the image of a renewed entity that works on improving its competitiveness and that, as in any company, must continue. Elkargi consolidates its sustained growth and develops new products, through the different financial solutions that it has put on the market, tailored to companies of all sizes and sectors.

Elkargi has collaborated in the financing of close to 100 million euros for large and medium-sized companies in growth, putting the company at the centre of the decision. In recent years, Elkargi has developed collaboration agreements with entities of the stature of the European Investment Bank, ICO, Cofides (for internationalisation projects), Sepides or through FINdustria, a product through which financial support is given to companies through the ‘sale & lease-back’.

In the words of its president, Josu Sánchez, “this requires a special effort on the part of all the professionals at Elkargi, because the future involves incorporating and offering our partners innovative and complementary financial products and services that allow us to contribute even more value to the business fabric and to reach all sizes of companies with customised solutions”.

In addition, the general manager, Zenón Vázquez Irizar, added that “we want to be a financial hub that companies approach to find solutions to their financial concerns, we have a lot to contribute and we owe it to our companies”. The constant commitment to diversification in products and services with added financial value “helps to strengthen the financial structure of our members and to incorporate tools that allow them to improve their economic-financial management, one of the great challenges facing companies in the country”, concluded Vázquez Irizar.

Investment aimed at all sectors and all types of companies, beyond SMEs

Elkargi has also made progress in its commitment to financing self-employed professionals, entrepreneurs, and start-ups. During 2022, around 7 million euros have been channelled to new creation and technology-based companies, with average tickets of around €140,000. In the words of Zenón Vázquez Irizar, “we support them in the financial sphere and also in identifying their needs, helping them to professionalise their financial function, as well as in the search for the necessary financing; if necessary, by participating in financing rounds”.

This proximity to innovation is aligned with the firm commitment to programmes such as the industrial entrepreneurship support programme (PAEI), with Next EU funds, through which Elkargi has financed close to 80 million euros, or its innovation fund, alternative financing and fixed-rate financing, both aimed at SMEs. As a result, and during the past year, Elkargi has supported 100 projects with a completely innovative base for an amount of almost 30 million euros. In addition, and within the framework of the strategic projects for the recovery and transformation of the economy (PERTE), 45 operations have been financed for an amount close to 15 million euros, aimed exclusively at financing the electric and connected vehicle (EV).

It is worth mentioning Elkargi’s openness to reinforcing its financing to sectors such as culture, thanks to its collaboration with the association of Basque production companies Ibaia to boost the film and audiovisual industry, which is experiencing times of growth and a “record” amount destined to artistic, recreational and entertainment activities.

Of the total 455 million euros financed for 3,700 operations in 2022, 53% has been earmarked for investment, with a growth of 12 points compared to the 2021 financial year. This percentage is above the average relative weight that investment has in the more than 1.7 billion euros of financing that Elkargi maintains in force. A figure that confirms the strength of the country’s business fabric in spite of the difficult situation of energy costs, rate rises, or the war in Ukraine, which directly impact the macroeconomic evolution.

The rest of the financing went to meet working capital needs with almost EUR 100 million and a clear reduction of its relative weight in the year, after the two previous years with a large injection of liquidity, as well as to the granting of technical guarantees for the fulfilment of contracts with third parties.

Financial solutions with value

After two years of intense activity with the covid loans, the companies that have taken advantage of the possibility of novation of their loans during this year have been 527 for an amount slightly higher than 52 million euros. All in all, Elkargi has experienced a decrease in its delinquency rate, below the average of the financial system.

The new Elkargi wants to promote a cultural change in the economic-financial management of the business fabric as a whole. A change aimed at a better preparation of its 22,700 member companies so that they can face, whatever their size, and with greater guarantees, a future that looks uncertain.