Facing the supply crisis: Finding financial solutions for companies through a digital platform
About this good practice
The crisis in global supply chains was generated by different operational disruptions created by the COVID-19 pandemic, which initially implied the closure of main ports, borders and manufacturing sites. Many businesses were initially unable to cope with these impacts and the consequent shortages in supplies.
A short-term response to this crisis by the Government of Catalonia was the development of a platform that offered tailor-made financial solutions to companies affected by the supply and raw materials crisis. This platform was developed in the context of the Pacte Nacional per a la Indústria 2022-2025 and it was jointly designed by the Institut Català de Finances (Catalan Finance Institute) and the Ministry of Business and Labour.
The Catalan Finance Institute is the public financial institution owned by the Government of Catalonia. Its mission is to foster and improve access to funding for enterprises in Catalonia in order to contribute to the growth of the region's economy, complementing the private financial sector.
The digital platform allows companies to specify their needs regarding the supply and raw materials crisis. Then the ICF contact companies so as to offer them tailor-made financial solutions. In general terms, the repayment period is up to 5 years, including a grace period of up to 1 year.
Resources needed
Internal human resources from the Institut Català de Finances (ICF).
On the whole the Catalan Finance Institute will allocate100 million euros to this initiative through different financial solutions.
Evidence of success
This practice is considered as good because 56 financing opportunities have been generated. Among them, 11 opportunities have either been formalized or are still under study, which correspond to 5,6 M€.
No other similar platform has been created in Catalonia so far.
Potential for learning or transfer
This practice is considered to be highly transferable to other regions. According to the Institut Català de Finances (ICF), key success factors for these type of platforms are:
• To be able to meet the demands of companies quickly.
• To be able to identify the best solution that fits companies’ needs.