German financing landscape in flux

Germany is experiencing a gradual but serious change in the financing landscape. Banks continue to be an important financing partner. For some years now, however, alternative models such as leasing, factoring and Co. on the rise. Medium-sized companies are increasingly relying on bank-independent Models.

Ten years ago, entrepreneurs were almost considered exotic if they used forms of financing such as leasing or factoring. Today, alternative models and financiers have a permanent place in many strategic financing portfolios. This change will continue - the rules of the game are changing. In the future, banks will have even less room for maneuver in many financing situations due to the regulations.

One example: With the introduction of IFRS 9, each individual exposure must be recognized in the balance sheet at its current fair value, which will result in a higher deposit of equity. There is increasing pressure, for example, to sell on restructuring exposures with the associated need for write-downs. It can also be assumed that banks are unlikely to accompany new credit exposures that are risky from their point of view. As a result, the gap in creditworthiness will widen even further. Other financing partners will increasingly fill this gap: Creditworthiness and bank-independent providers, fintechs, and various players on the capital market.