Issuu

magazin Nยบ07 | December 2019

We design SME financing. Easy. Fast. Innovative.

Page 19

FROM REAL LIFE Kuhne Anlagenbau manufactures machines for the production of packaging - international, employee-friendly, intelligently financed Page 24

STIMULI Our review of 4,000 years of the credit system shows: Never before has it been so easy for entrepreneurs to obtain borrowed capital as it is today Ausgabe 3 / 2019 โ ข creditshelf

smart company quick chEck The future is digital. your company too?

Experts agree: Digitisation is the key to staying competitive! Therefore, no company should miss out on this trend. Instead, it should know where it stands in terms of digital change.

you with recommendations for action. This allows you to further advance topics such as Industry 4.0, Internet of Things or digital customer communication in your company.

TAKE THE TEST NoW!

Supported by partners from science and industry:

Answer twelve questions in just a few minutes and find out how smart and digital your company is.

The smart company quick check was developed in cooperation with the University of Paderborn, the East Bavarian Technical University of Regensburg, the management consultancy KPMG and the DUB UNTERNEHMER magazine.

The results are immediately available: You receive a wellfounded and professional evaluation, which not only shows the chances of your company, but also provides

The free smart company quick check can be found at: smartcompanytest.creditshelf.com 2

Editorial

Dear Readers, where do you stand on transformation? Are you implementing changes in a targeted manner? Or are you still hesitant and would like to wait and see what you are dealing with? The study “Industrial SMEs and Financing 4.0” has shown how divided entrepreneurs currently are: Topics such as big data in liquidity planning are no longer dreams of the future, but SMEs are often too late in tackling innovations. However, a wait-and-see mentality can be dangerous. Global developments can quickly catch up with you and then you are out of the race. Adaptation, growth, further development - change has many faces that never cease to amaze. It could be the introduction of a smart solution for personnel management, the realignment of products and business models, the purchase of another company or – as in our case – an IPO. As an entrepreneur, you certainly have your own story to tell. A glance at the history of the credit system also provides some insight. It is a good example of transformation: A constant sequence of changes and necessary adjustments. What we have learnt from working on the article: Never before has it been so easy to obtain capital as it is today. This is good news for SMEs, but also presents new challenges: Entrepreneurs need to know exactly what

Editorial

they want and how they can optimally finance their goals. Liquidity is increasingly becoming a matter of the right strategy and an individual financing mix. Whether it’s a start-up or a traditional SME, there is a suitable financing option for almost every situation and challenge - the articles on Kuhne Anlagenbau and deinSchrank.de clearly show this. This issue of our magazine is full of such stories of transformation. It covers challenges, opportunities and risks. We hope that you will be able to gain important impulses for your work and get to know new ideas, perspectives and solutions. You’re in the midst of a change? And require concrete assistance? Then we will be happy to assist you together with our network. After all, for us transformation always includes cooperation. Let us achieve more together!

Dr. Tim Thabe Co-Founder and Chairman of the Board of creditshelf

ovErviEw 3

EDIToRIAl

TABlE oF CoNTENTS AND MASTHEAD

3 QuESTIoNS FoR ...

Dr. Matthias Holzamer explains how the global economy is shifting and the challenges it presents to SMEs

FRoM REAl lIFE

MAST HEAD

FoCuS oN gRoWTH

By acquiring other companies, SMEs can boost their growth

10 13

FRoM REAl lIFE

From extruders to forfaiting: The traditional company Kuhne Anlagenbau introduces itself

What SMEs must bear in mind when going public

19 22

CooPERATIoN PRoJECTS

In an interview, Maturus Finance explains how object-based models support SME financing

CooPERATIoN PRoJECTS

Interview with the developer of the first digital “credit card” for SMEs

FRoM REAl lIFE

TRENDS

creditshelf was able to secure important know-how and expand its portfolio through the acquisition of Valendo

STIMulI

From trade caravans to Fintech trends - a journey through the history of the credit system!

CooPERATIoN PRoJECTS

Many HR departments use outdated IT systems. Find out where changes should be made

Custom-made furniture that is industrially manufactured - no contradiction for DeinSchrank.de

Publishers: creditshelf Aktiengesellschaft Mainzer Landstraße 33a 60329 Frankfurt/Main, Germany Telephone: +49 69 348 772 40 E-mail: info@creditshelf.com www.creditshelf.com Board of Management: Dr. Tim Thabe (Chairman), Dr. Daniel Bartsch, Dr. Mark Währisch Chairman of the Supervisory Board: Rolf Elgeti Entered at the Frankfurt/Main District Court – Comm. Reg. no. 112087 VAT ID: DE298667279 Responsible under the german press law: Birgit Hass (Head of Marketing and Communication, creditshelf AG) Head of Advertising: Birgit Hass (Head of Marketing and Communication, creditshelf AG) Head of Subscription Service: Laura Gabriel (Marketing and Communication, creditshelf AG) Internal project team of creditshelf: Birgit Hass, Fabian Brügmann, Dr. Gregor Heinrich, Laura Gabriel, Marie-Kristin Winter, Jan Stechele, Florian Bruse, Linus Sluyter, Shima Nagdhali, Anna Schönfeld, Sebastian Seibold Conceptual design and implementation: ABG Marketing GmbH & Co. KG www.abg-partner.de

26 13 16

STIMulI

How advanced are SMEs in terms of digitisation? A study provides insights

DATES AND EvENTS

From the Morning Meetup to the Mittelstandstag: We are there when people cooperate to find solutions

STIMulI

Experts provide simple and concise answers to questions that concern SMEs today

Nº07 | December 2019 • creditshelf

Editorial office: Ilka Stiegler, Dominik Schilling, Tony Wachtel, Ina Jahn ABG Marketing GmbH & Co. KG layout and design: Alin Hanisch ABG Marketing GmbH & Co. KG Print: RheinMail GmbH, Boppard Photo credits: • creditshelf AG • Jan Bürgermeister (www.fotostate.com) • Laura Gabriel, Birgit Hass, Shima Nagdhali (creditshelf AG)

• Unternehmens-PR Editorial deadline: 04 October 2019 Print run: 100,000 copies (1st quarter of 2019, IVW verified)

3 questions for ...

Economic upheaval in a global economy

Trade conflicts and climate change challenge SMEs

The questions were asked by: Prof. Dr. Dirk Schiereck Member of the Supervisory Board of creditshelf AG, Head of Corporate Finance at the TU Darmstadt

Markets never sleep, but are in a state of constant change. For this reason, companies must continuously work on positioning themselves successfully. In doing so, the market and geopolitical framework conditions can either positively or negatively influence one’s own economic development. In addition to the classic issues of the future such as “digitisation” and “shortage of skilled workers”, additional changes have emerged in recent months which pose major challenges for SMEs. Together with Dr. Matthias Holzamer, SME expert and Partner at the consulting firm Roland Berger, we will take a closer look at these current trends. Are there any striking trends that threaten the economic development of SMEs? Dr. Holzamer: There are two major issues that have dominated the economic situation in recent months: Deglobalisation and climate policy. Deglobalisation is the term used to describe the fact that some economic powers are increasingly concentrating on their own domestic market and acting in a protectionist manner. This development is largely driven by global economic and geopolitical conflicts: We have a trade dispute between China and the United States as well as a looming unregulated Brexit - to name just two flashpoints. Naturally, this fuels uncertainty and ultimately has a negative impact on the export sales of German companies, especially SMEs. The second striking trend is the energy revolution, which has gained new momentum due to the Fridays for Future movement. The abandonment of fossil fuels will certainly entail higher costs. For innovative companies, the energy revolution will certainly bring opportunities, but many companies will

Dr. Matthias Holzamer Dr. Matthias Holzamer is a partner in the “Restructuring, Performance, Transformation & Transaction” competence centre at Roland Berger in Frankfurt. He advises SMEs in the fields of corporate transformation, restructuring and corporate financing.

3 questions for ...

also have to make major and sometimes cost-intensive changes to their processes or products. How must companies adapt in order to remain competitive? Dr. Holzamer: World trade and thus also foreign trade are currently losing their importance and the outcome is unclear. The German economy must counter the threat of a decline in exports. Companies should therefore focus on their roots - both in terms of their core business and their core region. Backed by a strong domestic market, it is easier to survive international crises. As far as climate policy is concerned, companies should keep a very close eye on which climate laws are passed and what changes this will entail for them. The companies should adjust their value chain in such a way that, for example, CO2 pricing does not knock them off course. Generally speaking, SMEs need to be much more prepared for global economic changes and prove their ability to adapt quickly even in times of crisis. Which industries are particularly affected? Dr. Holzamer: All industries are constantly changing - after all, every company needs to adapt to market developments. However, the respective trends influence the individual sectors to varying degrees. The automotive industry, for example, is currently right in the epicentre. The energy revolution and the trend towards deglobalisation are having an extremely strong impact on these companies. The manufacturing industry is also becoming increasingly important, since topics such as CO2 pricing and a decline in exports also entail major risks for this sector.

Dr. Matthias Holzamer Roland Berger GmbH OpernTurm, Bockenheimer Landstraße 2-8 60306 Frankfurt am Main Germany

Contact

E-mail: Matthias.Holzamer@rolandberger.com Telephone: +49 69 29924-6401 Fax: +49-69-29924-6502

going public: hErE’s how it works If an SME or a young and growing company decides to go public, it is faced with a complex procedure. In this context, structured planning is the be-all and end-all. However, for those who are well informed about the processes, meet the requirements and can count on experienced partners, the procedure is a solvable task. Prerequisites for being listed on the stock exchange Deutsche Börse offers companies different ways to access the capital market. Depending on the chosen stock market segment, issuers must meet different inclusion requirements for being listed on the Frankfurt Stock Exchange. In Europe, companies wishing to raise funds 6

on the capital market have two options to choose from: the EU-regulated market and the exchange-regulated market, also known as the open market. The EU regulated market contains the General Standard and the Prime Standard - a subsegment with increased transparency requirements. The open market contains the Scale segment. Choosing the stock market segment depends on the company’s objectives when going public, the preferred investors it wants to reach and the degree of transparency it wants to ensure. The Prime Standard is the segment with the highest requirements on the Frankfurt Stock Exchange and even throughout Europe. Enterprises in the Prime Standard must, for example, prepare consolidated financial Nº07 | December 2019 • creditshelf

statements in accordance with International Reporting Standards (IFRS) or an accounting standard recognised as being equivalent by the EU. They must also have a reporting history of at least three years. Only companies admitted to the Prime Standard can be included in the DAX®, MDAX®, SDAX® or TecDAX® indices. Issuers of General Standard equities meet the minimum legal requirements of the EU-regulated market. For a listing in the Scale segment, which is particularly suitable for SMEs, financial reporting in accordance with the German Commercial Code (HGB) is sufficient. Companies intending to be listed in the Scale segment must also meet three out of five additional admission criteria (more on this in the info box, page 8). In order to fulfil the post-admission obligations,

From real life

many companies have to adapt their organisational structure. This includes efficient controlling instruments, the conversion to international accounting standards (in the Prime Standard), effective risk management and the qualification of specialists and managers. The three phases leading up to the start of trading Preparing for an IPO entails structural and regulatory requirements. However, good planning and early scheduling can usually help manage the complexity and effort involved within a year. The Initial Public Offering (IPO) normally comprises several phases: Planning and preparation, structuring, realisation and ultimately pricing on the day of the IPO.

Planning and preparation phase First, the basic conditions for the IPO are created. In an initial discussion with Deutsche Börse, the future issuer is given the opportunity to ask questions. In the process, companies learn how Deutsche Börse and its Capital Market Partners can support them on their way to the stock exchange - for example, in legal aspects relating to stock exchanges or with bank roadshows and IPO workshops. This is followed by the beauty contest, at which the banks wishing to support the company’s IPO present themselves. This facilitates the selection of the so-called syndicate bank, which especially supports the placement of the securities.

Realisation and pricing phase After the BaFin has approved the securities prospectus, the issuer publishes it and promotes its IPO at analyst meetings and an investor roadshow. The shares are placed with institutional investors and via the DirectPlace subscription functionality of Deutsche Börse AG with private investors. DirectPlace reaches investor groups such as family offices, asset managers and private investors. During the subscription phase, investors decide whether and at what price they wish to invest. The issuer and the bank determine the issue price on the basis of the offers. The shares are allocated to investors. Now the IPO is right around the corner: The initial price is determined at the IPO Ceremony on the trading floor of the Frankfurt Stock Exchange. This marks the start of ongoing trading on the Xetra® and/or the Frankfurt Stock Exchange trading venues.

Structuring phase Depending on the desired listing segment, the company now establishes structures that meet the legal requirements for fields such as accounting and controlling. During the structuring phase, a detailed project plan is also drawn up which combines corporate and financing strategies. The project plan contains the development of an equity story and an issuance concept which summarises the success factors and further information about the company. The due diligence process is also carried out. This represents a means of determining the value of the enterprise. It provides information which is then incorporated into the central offer document, the securities prospectus.

External partners offer support An IPO is usually a one-off event that is highly complex. It therefore requires an optimal preparation. Before and after the IPO, companies need competent experts to support them. These include external partners such as banks and communications agencies, but also lawyers, auditors and tax consultants. Deutsche Börse’s Capital Market Partner Network offers From real life

a pool of capital market experts to accompany companies on their way to the capital market and to provide advice in the aftermath. How else does Deutsche Börse provide support? “We keep noticing that it is especially important for us to offer close support to small and young companies. This is why it is particularly important for us to come into contact with nonlisted companies at an early stage,” says Nicole Maares, Head of Issuer Services at Deutsche Börse. With the Deutsche Börse Venture Network®, Deutsche Börse aims to bring about a noticeable improvement in the financing situation of young, up-and-coming companies in Germany, both for founders and investors. In doing so, Deutsche Börse applies its expertise to a pre-IPO area in order to facilitate access to capital for companies and to support innovations that can shape growth in Germany and Europe in the long term. The Deutsche Börse Venture Network® supports growing companies, for example in financing rounds and in expanding their network. “Executive trainings are also very important to us. Entrepreneurs who are still inexperienced on the capital market can use them to prepare themselves for effective and sustainable corporate management. In our experience, this significantly improves the chances of long-term success on the capital market,” says Maares.

Criteria for SMEs aiming for the Scale segment Companies must meet at least three of these criteria: yy Turnover of at least EUR 10 million yy Annual profit (positive) yy Balance sheet equity (positive) yy Issuer has at least 20 employees yy Accumulated collected equity of at least EUR 5 million

Nicole Maares Head of Issuer Services Deutsche Börse AG

Contact

E-Mail: issuerservices@deutsche-boerse.com Telephone: +49 69-21118-888 www.deutsche-boerse-cash-market.com

From real life

WORKING TOGETHER FOR A STRONG MITTElSTANd. BVMW

Stimuli

900,000 voices united for the SME sector. 32 strong partners in the SME alliance. 300 offices nationwide. 40 agencies in countries all over the world. Over 2,000 events for entrepreneurs every year.

BECOME A MEMBER NOW! Stimuli Ad

www.bvmw.de 9

acquisitions as part of thE growth stratEgy The advantage of acquisitions is evident: companies can grow quickly and purposefully. In recent years, the market for corporate or share transfers has grown significantly. This trend is boosted, among other things, by the stable low level of interest rates on the capital markets. growth: it all depends on the strategy Larger companies often rely on the buy-and-build strategy for growth. Several companies in one sector are 10

NÂş07 | December 2019 â€˘ creditshelf

purchased in order to establish a group of companies. In addition to expanding market power, synergies can also be exploited in this way. Another approach to acquisitions is the diversification strategy, which involves the acquisition of companies that differ from the buyer in terms of products and markets. Here, goals can be: opening up new markets, expanding the product portfolio or avoiding and minimising risks. Diversification makes sense if, for example, your own company is in a declining market environment.

Focus on growth

How our partners finance their growth Höver-Group from Kürten

The right approach As soon as the basic objectives have been established and the possibilities are known, a rough timetable and essential search criteria for the target companies are developed and weighted. From these premises it is usually also possible to derive statements on the feasible purchase price or financing requirements. The first transaction documents, such as a company profile, are then created and the search on the market is launched. If SMEs carry out the search themselves, they should examine and evaluate easily obtainable information themselves before contacting potential candidates. This allows one to quickly and inexpensively get a first impression. If external consultants are involved, they usually check various sources of information and first create a so-called longlist of possible companies to be taken over. They then also address the target companies, support the conclusion of a confidentiality agreement in the case of initial interest and accompany discussions. If both business parties seriously consider a possible involvement, they confirm this with a non-binding declaration of intent. At this point at the latest, competent experts should moderate the process in order to avoid any time-consuming and costly misunderstandings. What next? The next step is the due diligence investigation. This is a detailed assessment of the economic, fiscal and legal circumstances of the target company. As a result, the interested party receives an indicator for the value of the business, learns about the strengths and weaknesses as well as the risks of a possible investment. Finally, the contract and purchase price negotiations take place, ideally resulting in both parties signing the contract and subsequently executing the transaction. Transaction process takes at least half a year The acquisition of a “healthy” company usually takes place over a period of six to twelve months. The situation is different when acquiring companies in crisis, for example in the context of insolvency: Fast action is required here, usually within a few weeks or months. Such cases offer an interesting opportunity: If the operative core is fundamentally healthy, entrepreneurs can step in for a good purchase price and boost their own growth.

Under the motto “all from one source”, the Höver Group offers its customers full service from design through to development, production and repair. The group’s growth rate is 25 percent per year - since 2010 a new company has been added practically every year. Many companies are bought out of insolvency. In order to finance acquisitions, the group always requests an alternative offer from creditshelf in order to compare the strengths and weaknesses, opportunities and risks of the various financing arrangements.

VELOfactur from Hüllhorst The company has been renting out electric bicycles since 2011 and offers the appropriate infrastructure such as parking facilities, software and service. In 2017, VELOfactur reached its limits as a result of a number of major orders: The company had to rely on pre-financing to purchase goods in order to be able to meet the increased demand. After it was not possible to find a bank for orderrelated financing, the market leader for pedelecs turned to creditshelf and was successful. Since then, VELOfactur has repeatedly used this option to pre-finance purchases for projects ranging from EUR 100,000 to several million.

tegos from Ostrach In the case of the motorhome and caravan outfitter tegos, a major order also led to a significant surge in growth. The company already had a long and trusting relationship with its principal bank, but was still looking for another partner for a multi-year bridging loan. With creditshelf, tegos finally found an additional provider who, via a network of accredited professional investors, arranged a loan conveniently, quickly and flexibly and thus supported the growth in partnership.

elektron Systeme from WeiSSenohe The manufacturing service provider for electronic components is also experiencing a growing demand for its services due to the increased proportion of electronic components in products. This is accompanied by an increasing need for capital, for example to pre-finance the purchase of materials or machinery. The Franconian company uses a combination of a house bank and a digital financial services provider to ensure liquidity for continuous growth.

Focus on growth

Cooperation projects

digital “crEdit card” from fintEch 2.0 In autumn 2018, A.B.S. global Factoring launched quickpaid. CEo Thorsten Klindworth explains what this is all about in an interview. Mr Klindworth, in one sentence: What is quickpaid? Klindworth: quickpaid is the new digital payment option for SMEs - similar to a credit card. This enables purchases to be financed in a fast and flexible manner. How does quickpaid work? Supplier delivers goods and/or services to the client, and transmits the invoice

Customer

Supplier

Customer uploads the invoice to the quickpaid-portal and requests financing from A.B.S.

A.B.S. assumes the responsibility of the customer’s debt to the supplier

A.B.S. offers the customer extendend payment terms of up to 120 days

7 After the agreed-upon extension, the Customer pays the original amount of the invoice plus any additional financing costs to A.B.S.

Supplier accepts the change in responsibility and requests immediate payment from A.B.S.

developed a sales financing concept for suppliers. Now companies can offer their customers quickpaid as a virtual credit card and thus secure market advantages. quickpaid is a product of A.B.S. global Factoring. What are the strengths of your company? Klindworth: As a private, owner-managed financial services company that is independent of banks, we analyse every financing situation individually. That means: We adapt to the particular characteristics of each company and are prepared to take difficult and unusual paths. This is why SMEs have relied on our factoring services and other financing tools for years. With around 150 employees, we move an annual volume of around EUR 2.7 billion for our customers. We are active wherever our customers do business - practically all over the world. What does your organisation have in common with creditshelf? Klindworth: For some time now we have been cultivating a close partnership and are jointly active in networks and sales. creditshelf is a pleasant and innovative market partner for us. Like us, creditshelf also has banking knowhow and risk experience, which many Fintechs lack. That is why we both consider ourselves a part of Fintech 2.0.

5 A.B.S. settles the supplier’s invoice by the due date

Is there a difference between quickpaid and purchase factoring? Klindworth: Classic purchase factoring is a proven method that is aimed at companies with key suppliers who are in constant supplier relationships and require large volumes. While purchase factoring is relatively complex, quickpaid is much faster, less complicated and more flexible. It is therefore ideally suited to cover seasonal peaks and to settle various supplier invoices immediately. What advantages does quickpaid offer? Klindworth: Suppliers receive their money immediately and do not have to bear any risk of default. At the same time, we enable our SME customers to plan their liquidity securely by scheduling payment terms of 60 to 120 days. By paying the supplier invoice immediately, they can also claim a discount, which in many cases even overcompensates for the quickpaid costs. How do companies perceive your product? Klindworth: Our customers are currently small businesses, tradesmen, pharmacists, freelancers or craftsmen as well as the classic SMEs with whom we already cooperate in factoring on the sales side. They all appreciate the use of quickpaid as a flexible financing instrument to cushion seasonal peaks and growth peaks and to take advantage of favourable purchasing opportunities. We have also 12

Cooperation projects

Thorsten Klindworth Born in 1970, married, studied business administration in Regensburg and graduated with a degree in business administration focusing on the topic “Is factoring worthwhile for the user?”. In 1996 he founded A.B.S. Global Factoring AG in Wiesbaden. Since then, he has been the sole representative of the Executive Board and Chairman of the Executive Board since 2011. He is an honorary member of the A.S.U. Association of Family Entrepreneurs, is Senator h.c. and a member of the European Council of the Economic Committee for Germany, as well as a member of the overall board of the Federation of German Wholesale, Foreign Trade and Services. His hobbies include swimming, sports, music, photography, electronics and cars.

From real life

optimally tailorEd solutions It’s a smart business idea: The e-commerce company deinSchrank.de produces furniture made to measure - using automated manufacturing processes. The idea is well received and brings strong growth to the supplier from Frechen near Cologne. But growth is always a challenge and needs to be skilfully managed, as the company’s authorised signatory, Philipp Koecke, knows. However, thanks to a strong team culture, digitised processes and clever financing, deinSchrank. de can steer its growth in the right direction. Made to measure production 4.0 You love your attic apartment, but unfortunately you just can’t find a suitable wardrobe because of the complicated

Philipp Koecke (left), authorised signatory of deinSchrank.de, in a conversation with a colleague from the production department

sloping roof? Then simply configure your furniture yourself, have it made to measure and delivered to your home! This short situation describes the principle of DeinSchrank.de. The company was founded in 2009 and has been steadily growing ever since. Today, around 110 employees work for deinSchrank.de - from carpenters to IT specialists. Initially, deinSchrank.de was a pure trading company, but in 2015 it decided to start production with its own factory in Rheinbach. “Since there is a very high demand for our product and we are constantly growing, we have tripled the production area in 2017 and 2018 to 10,000 square meters,” says Philipp Koecke, authorised signatory. But size is not the distinguishing feature of the production. Instead, it is the technology used. Knoecke continues: “We offer automated production of custom-made furniture. From real life

Also as a video on our YouTube channel 14

Each piece is individual and each wardrobe is unique. Thanks to modern industry 4.0 technologies, we are able to produce one-off items at a high frequency and for the benefit of our customers. We already had experienced managers from the furniture industry as guests here, who were completely amazed during the tour,” Koecke remembers with a smile. creditshelf’s Corporate Account Manager Stefan Hnida was also very impressed during his visit at the production site: “Robots move through the hall along independent routes. Every groove, every hole, every edge is automatically and precisely implemented by one machine.” The product range of deinSchrank.de includes everything that homeowners like to use to decorate their homes, from armchairs to bathroom furniture and hanging shelves. And everything is always available in individual dimensions, designs and fittings - literally “your wardrobe”.

“creditshelf itself embodies a digital approach, so the team has a very good sense of contemporary business models like ours.”

Collectively giving growth a structure

also maintains a down-to-earth and friendly relationship with its customers. The “dein” in the company’s name already brings the customer closer and shows him that he is important and that he can create his own personal piece of furniture with DeinSchrank.de. “It is both a major technical challenge and one of our greatest strengths to convert individual customer data from the 3D configurator into components that precisely fit,” says Koecke. This unique product can only be made available through a special combination of carpentry, modern CNC machines, internally developed control software and fully digitised processes.

“Our product offers customers a practical solution and is therefore very successful. The challenge for us is to accompany the resulting growth at every corporate level and to steer it in the right direction. This means that we must constantly work on an appropriate human resources system, advance our purchasing activities and sit down with the right multipliers and the right financing partners,” says Koecke. The authorised signatory, however, has a lot of experience with company growth: During his career, the business graduate with an emphasis on technology supported start-ups in the venture capital sector for many years. According to Koecke, part of the recipe for success at deinSchrank.de lies in the company’s strong team culture: “We always try to take everyone with us and distribute the tasks over as many shoulders as possible. We have well-trained people at all levels who can rely on each other. Another part of our team culture: From the trainee to the Managing Director, we cultivate using the friendly “du” form among ourselves without losing mutual respect,” says Koecke. During his visit Stefan Hnida was immediately impressed by the special atmosphere, the humorous manner, the joie de vivre and the enthusiasm of the team for their own product. The company Nº07 | December 2019 • creditshelf

Philipp Koecke, Authorised Signatory at deinSchrank.de

This is where the future is configured In addition to the private customer sector, deinSchrank.de also wants to become more active in the B2B sector in the future. “We would like to support small carpenters who are on the road and offer the assembly of furniture. These “assembly service carpenters” buy a wardrobe from us, sell it to their customers and finally assemble it at their homes. With our commitment we would also like to respond to the shortage of skilled workers in the trade. After all, we relieve the carpenter of the time-consuming manufacturing of the furniture and allow him to concentrate

From real life contacted Dr. Daniel Bartsch, whom I know from my network. That’s how what belonged together came together,” says the authorised signatory. After the first contact was established, the creditshelf Corporate Account Manager took the helm and worked closely with deinSchrank.de. “As a financier, the challenge with such a young company is to carefully examine its potential. You can’t just work with the usual key financial figures. You have to look at the product and customer opinions online and check whether the first profits are being generated,” explains Hnida. creditshelf looked into the future of the company, so to speak. This approach was well received by deinSchrank. de. “creditshelf itself embodies a digital approach, so the team has a very good sense of contemporary business models like ours. They ask exactly the right questions about conversions and growth rates,” Koecke sums up. The agility, speed and short decision paths at creditshelf also impressed the team from Frechen. The entire financing took place in only six weeks during the start of summer 2019. Flexible addition of bank partners “The creditshelf approach is a great by-product that perfectly matched our development phase and complemented the financing provided by our banking partners,” says Koecke. However, the authorised signatory does not see this as a replacement for these reliable and long-standing partners. In his opinion, the young Fintech is supporting the banks: “Bank advisors are often constrained by their structures, standards and strict regulations and are therefore not always able to react as quickly as they wish. If a Fintech like creditshelf can step in and help out, then the consultants are delighted that a long-standing customer was able to find help,” Koecke is convinced. “We definitely have creditshelf in the back of our minds as an option, and we will certainly continue to work together on issues in the future,” the authorised signatory confidently states. entirely on his assembly work,” Koecke describes the principle. deinSchrank.de not only maintains four locations in Germany, the company also supplies consumers in seven neighbouring countries. Additional markets in other European countries are expected to follow. “We have attractive markets around us that we want to expand into. In essence, all that is needed is a website in the local language and a local logistics network,” explains Koecke and clarifies: “The production will of course remain in Germany.” The company from Frechen has just launched its new product lines. Under the Basic, Premium and Exclusive labels, customers can now adapt their furniture to their specific needs even better. If, for example, the customer requires a solid and practical but straightforward cellar cupboard, he can now opt for the Basic line. Financing for the right moment As the authorised signatory of a young digital company, Philipp Koecke must also constantly optimise the financing structure and look for suitable solutions. In the process, he eventually became aware of the Fintech approach. “I had looked at practically all the alternative models. creditshelf was of particular interest to me for quite some time. When the situation was convenient, I

“You can’t just work with the usual key financial figures. You have to look at the product and customer opinions online and check whether the first profits are being generated.” Stefan Hnida, Corporate Account Manager at creditshelf

From real life

Positive impact of Industry 4.0 on creditworthiness SMEs are increasingly making use of the Internet of Things SMEs are becoming more and more open to the topics of Industry 4.0 and digitisation: This is shown by a survey of around 250 financial decision-makers from SMEs. In 2019, for example, 86 percent of the companies surveyed recorded real-time data in order to use it in the spirit of Industry 4.0. This represents an increase of nine percentage points within two years. 53 percent of the SMEs surveyed (previous year: 44 percent) equip their products that are delivered to customers in such a way that - at least to a certain extent - they have access to the most important operating data (e.g. runtimes or consumption values). This data is then used as part of service and maintenance contracts. Three quarters of those surveyed for the study also use systems, machines or equipment that supply data to the manufacturer for this purpose. Planning reliability leads to advantages in financing The continuous usage data enables the machine builder to identify possible problems or downtimes the customer is experiencing at an early stage. He can take countermeasures even before a crisis or a production outage occurs. A smooth production process and planning reliability during ongoing operations can have a positive effect on a companyâ€™s credit rating. This would also provide the companies with a potential advantage in financing future investment projects.

Stimuli

91 percent of the industrial enterprises surveyed would even make their data available to lenders in order to convince them of a planned investment. More than half of the participants in the study hope that this will lead to lower interest rates, faster credit decisions, more flexible terms or less bureaucracy. One third of the companies surveyed are currently working on using a model for financing decisions that puts industrial data such as consumption values, throughput times, reject rates or complaints in relation to their key financial figures. More than half of them are already using such a model. Of these, 97 percent confirm that the quality of financing decisions has improved as a result.

The study, titled â€œIndustrial SMEs and Financing 4.0â€?, was carried out by creditshelf for the third time. Once again, Prof. Dr. Dirk Schiereck, Head of Corporate Finance at the TU Darmstadt, provided academic support. If you are interested in the full study, please send an e-mail to: birgit.hass@creditshelf.com

Stimuli

Employee qualifications lag behind

Fear of change slows down investments

However, companies see a need to catch up when it comes to the qualifications of their employees: in the evaluation of digital data from their own machines or external devices at the customer’s site. Only around half of the SMEs surveyed gave their employees the grade “good” or “very good”. This figure has hardly changed since 2017. A similar mood can be observed in the evaluation of the house banks: Only 44 percent of those surveyed believe that their bank is capable of evaluating industry 4.0 data as part of the financing process.

Around 70 percent of the participating SMEs fear that their company will not survive the changes unscathed. They see globalisation, international trade conflicts, a shortage of skilled workers and artificial intelligence as risks. This uncertainty has a negative impact on the investment and financing activities of half of the companies.

“For a large number of companies, Industry 4.0 is no longer a buzzword, but part of their daily reality. The Internet of Things has reached the industrial SME sector.” Dr. Daniel Bartsch, Co-founder and Member of the Board of Management, creditshelf Aktiengesellschaft

MADE FOR GERMANY THE SEAL OF QUALITY FOR GERMANY Germany is one of the most competitive industrial locations in the world, but maintaining this position in the future will require enormous effor ts. Wo r d h a s g o t a r o u n d t h a t t h e “ G e r m a n” S M E s e c t o r i s o n e o f t h e p i l l a r s o f o u r m a r k e t e c o n o m y and will continue to gain in impor tance in the future. Wi t h t h e “M a d e fo r G e r m a ny ” s e a l, D e u t s c h e s B u s i n e s s T V h o n o u r s co m p a n i e s t h at h ave s t re n g t h e n e d G e r m a ny a s a b u s i n e s s l o c at i o n a n d h ave re n d e re d o u t s t a n d i n g s e r v i ce s w i t h t h e i r a c t i v i t i e s. A P R O D U C T I O N O F:

Fo r m o re i n fo r m at i o n s e e : Stimuli Ad w w w. d e u t s c h e s - b u s i n e s s. t v

CO N TAC T: M i c h a e l A s s e n M A I L: m a @ d e u t s c h e s - b u s i n e s s .17t v P H O N E: 0 2 2 1 - 9 7 0 1 6 1 - 6

Cooperation projects

can smEs optimisE thEir financing bEhaviour? Carl-Jan von der goltz, Managing Partner of Maturus Finance, explains how the current financing landscape presents itself for german SMEs. The expert for property-based financing also explains why alternative models such as sale & lease back can be viable options in the future. What is the current financing situation for SMEs? Von der Goltz: It is becoming increasingly difficult for companies in special situations to obtain loans. The banks are confronted with a new, strict regulatory regime: They must deposit more equity capital for their risk positions. In addition, a strict ceiling on their long-term debt ratio will apply in the future. As a result, creditworthiness will become a central factor and the banks will become increasingly reluctant to lend. How can entrepreneurs react to this? Von der Goltz: I would advise SMEs to reflect on their financing strategy and complementary capital models. In the beginning it is certainly a bit complicated to deal with the various possibilities and financing partners. However, an individual and broad-based financing structure also means more independence and flexibility.

How does your financing approach work and when does it take effect? Von der Goltz: Manufacturing SMEs often have a lot of capital in the form of used machinery and equipment on the factory floor. These are exactly the objects that sale & lease back targets. If these are valuable, mobile and common machines, liquidity can be generated from them as part of sheer internal financing. The entrepreneur sells his machines to us and then leases them back immediately. The items never leave the factory floor and can be used without interruption. Sale & lease back is often used in special situations: Restructuring and reorganisation, postcrisis growth, acquisition of other companies, succession or transformation processes. Who benefits from sale & lease back and how? Von der Goltz: Sale & lease back is mainly used by companies in mechanical engineering, metal processing, plastics and wood processing, the food industry, the textile or printing industry, building construction and civil engineering, agriculture and forestry or transport logistics. The financing volume is usually between EUR 400,000 and EUR 15 million, and in some cases even more. The sale of the machines also increases the equity ratio. This can have an impact on the creditworthiness of the company and improve the chances of receiving a simultaneous bank loan: In my opinion, this shows how different types of financing can complement and strengthen each other in the mix.

So is your â€œsale & lease backâ€? model a substitute for the classic bank loan? Von der Goltz: No. Like other alternative models, sale & lease back is not in direct competition with banks and savings banks. Rather, alternative financing is a strategic supplement with the advantage that the creditworthiness of the SME often plays a less decisive role.

Cooperation projects

CARl-JAN voN DER golTZ Maturus Finance gmbH

Telephone: +49 40 300 39 36-250 E-mail: info@maturus.com Web: www.maturus.com

From real life

randomly achiEving optimal rEfinancing

Axel Werner (left), Managing Director of Kuhne Anlagenbau, shows Stefan Hnida, Corporate Account Manager at creditshelf, the company

Kuhne Anlagenbau from North RhineWestphalia manufactures machines for the production of films and packaging. The SME focuses on “made in germany”, good teamwork, individual products and costeffectiveness. Managing Director Axel Werner came across creditshelf somewhat by chance, but was quickly passionate about the financing model. Quality must be competitive Kuhne Anlagenbau and its sister companies Kuhne GmbH and K-Tool together form the KUHNE Group - a group of companies specialising in extruders. These are machines for the production of foils and plastic sheets. “In

principle, an extruder is like a hot meat grinder: In the back, plastic granulate is added that comes out from the front as an amorphous paste, which is then processed into the thinnest foils or stable sheets” - this is how Axel Werner likes to describe how his company’s machines work to the layman. Werner is the Managing Director of Kuhne Anlagenbau and responsible for Purchasing, Finances and Human Resources. Born in Lower Saxony, he studied business administration in Göttingen and can look back on an extensive mechanical engineering background. While working for a mechanical engineering company in the same customer industry, he was approached by owner Peter Kuhne and finally joined the From real life

KUHNE Group in 2010. Werner is a friendly, straightforward and consistent conversational partner. The necessary patience for his work and his ability to grit his teeth when faced with challenges is also acquired through his hobby - cycling. After all, there are plenty of challenges in the mechanical engineering sector. Werner must therefore constantly ensure that the competitiveness of his company is maintained and, if possible, improved. “We deliberately focus on manufacturing in Germany and on mostly local suppliers. While this is a quality advantage over other machine builders producing in Asia, it also means higher labour and manufacturing costs. It is not that easy to compete against international competitors,” 19

says the Managing Director. Another problem is the need for skilled workers. There is a high density of mechanical engineering companies in the region and, accordingly, strong competition in the search for well-trained personnel. Better machines due to a good working environment The KUHNE Group is able to benefit from its employee-friendly corporate philosophy. At the location of the three companies in Sankt Augustin, distances are short - people often know each other personally. In addition, people treat each other fairly and communicate openly. “We can’t just cosy up to each other, that’s obvious, but our personnel policy is honest and reliable. The financial and economic crisis from 2007 to 2009 is a good example: Even if there had been every reason to do so, there was no wave of layoffs during that period. Our management always tries to be fair and collegial. Because if you can’t set an example yourself in everyday life, you can’t expect it from your employees,” the Managing Director clarifies. Owner Peter Kuhne is also important for motivating the 250 employees and ensuring that they identify with the company. As an entrepreneur, he has known many of his colleagues personally for decades. Thus, the employees know for whom they give their best every day. As a result, the KUHNE Group had a low overall fluctuation rate and long periods of employment. Some colleagues have been with the company for 45 years. Convincing through uniqueness Further ingredients in Kuhne’s recipe for success are individual technical customer support and machines that are often tailor-made. “Solving the customer’s problems is our

“Project financing in cases such as that of the plant manufacturer usually poses some challenges.” Stefan Hnida, Corporate Account Manager at creditshelf

priority. We provide sustainable advice and find unique technical solutions,” says Werner. The term “unique selling proposition” is therefore to be taken almost literally at KUHNE-Group: “Films with up to 13 individual layers, for example, cannot be made by anyone else. We have patented the recipes for it. And the TripleBubble® technology is also only available from Kuhne. In our segment you can hardly find comparable suppliers anywhere in the world,” says Werner confidently. In the Triple-Bubble® process just mentioned, a film tube made of up to 13 different plastic layers is stretched out simultaneously in two directions. This can significantly improve the insulating properties of food packaging, for example. In addition, thinner films can be used, thus saving resources. The systems manufactured by Kuhne later produce a whole range of products: from the wafer-thin film packaging to the safe blood transfusion bag, the sturdy car roof box or the foil used for insulating buildings. Due to the unique global position of the KUHNE Group, customers are distributed throughout the world - from the USA to China, from Russia to Great Britain, from

Nº07 | December 2019 • creditshelf

South America to South Korea. Werner and his colleagues are, of course, also aware of the public debate about plastic as a material. That’s why the experts in Sankt Augustin give a lot of thought to resource conservation and composting when developing solutions. The KUHNE Group looks to the future with these topics and aims to educate, raise awareness and continue to develop together with its customers. From forfaiting to Fintech Even if the company often builds one-off products and is happy about worldwide customers: There is still no alternative to cost efficiency and the search for promising refinancing options for Managing Director Axel Werner. Via a small detour, so to speak, he also found his way to creditshelf. “We manufactured a TripleBubble® system for a customer and gave him a longer payment period for a portion of the price. We wanted to pre-finance these two million EUR through a sale of receivables. We usually use a process called ‘forfaiting’ for this, but unfortunately it did not look like it would

From real life

succeed in this case,” Werner recalls. Forfaiting is the sale of individual open receivables to a socalled forfaiter. The seller of the receivable - in this case Kuhne Anlagenbau - would therefore have received the EUR 2 million immediately from the buyer of the receivable and not at the later point in time when the customer would have paid. However, there was one problem: “It would have been indispensable for the forfaiter to receive information about the solvency of our customer. After all, he has to make sure he gets his money later. However, since our customer is located abroad, it would have been difficult for the forfaiter to determine his creditworthiness in a conclusive manner. That’s why, in this case, the sale of receivables was not an option,” Axel Werner describes. However, the consultant engaged by Kuhne Anlagenbau had an alternative proposal up his sleeve: He referred Axel Werner to creditshelf. So in May 2019, the Managing Director contacted the Fintech company, which was still unknown to him, and received an immediate reply. Convinced by service and flexibility “It really was absolutely amazing: Only two months passed between the first contact to the payment. creditshelf took only one month to get an idea of who we are. On the other hand, banks have known you for much longer, know about the entire history of the company and are not nearly as fast,” says Werner enthusiastically. At the beginning of May Stefan Hnida, the Corporate Account Manager at creditshelf, visited the company in Sankt Augustin himself and was given a tour of the company by the Managing Director. They immediately got along. “I liked Mr. Hnida’s open and engaging manner from the beginning. I always received a direct reaction to e-mails and inquiries,” Werner praises the creditshelf Corporate Account Manager. “Project financing in cases such as

“With creditshelf, we now have a practical option in place, should we wish to refinance something in a special case.” Axel Werner, Managing Director, Kuhne Anlagenbau

that of the plant manufacturer, usually poses some challenges. A financier must take a close look: How probable is it that the company will complete the project? Can delays occur? Has the financing been properly calculated and the supply chain been clearly established? But thanks to the Managing Director and his many years of experience, every detail was perfect,” says Hnida. In order to meet the customer’s desire for flexibility, the loan was eventually disbursed in two instalments: The first one million euros as a twelve-month bullet loan - the customer is given one year to repay. The second instalment of one million euros followed as an annuity loan with a term of 24 months. If the purchaser of the investment has settled the first part of the claim, Kuhne will repay the remainder of the loan in regular instalments. A model for the future As it turned out, the business economist was particularly impressed by the Fintech model itself: “The fact that creditshelf brokers funds From real life

from institutional investors within the framework of an auction and thereby sets the interest rate range is a great idea. In addition, we always knew what information would be made available to potential lenders - everything was transparent and well prepared.” Nevertheless, Axel Werner will not part with the two house banks that finance the company. “Our basic funding structure remains unchanged. But with creditshelf, we now have a practical option in place, should we wish to refinance something in a special case,” explains Werner. The Managing Director cannot yet predict when this will be necessary again. However, he is convinced of the concept: He would also recommend the Fintech approach to his customers or other machine manufacturers if they had special financing needs. But Kuhne Anlagenbau’s next projects are underway: The company would like to gain a stronger foothold in the USA. In addition, new solutions for medical technology and recycling are to be developed in Sankt Augustin. 21

creditshelf acquires financier Valendo The European financial services industry is having difficulty catching up with the digital transformation - not creditshelf though. With the acquisition of Valendo, the Fintech company expands its portfolio of digital financing solutions.

Nº07 | December 2019 • creditshelf

“Together, we can further expand both the technology and the financing product and make it available to a broader group of customers. In addition, we will develop additional offers in cooperation with the finleap ecosystem from our Berlin location.” John v. Berenberg-Consbruch, Managing Director of Valendo

Trends

In order to stay ahead in the future, the Frankfurtbased Fintech creditshelf has bought all of the shares of Valendo GmbH. The Berlin-based company also specialises in technology-based financing for SMEs, with a focus on risk management and credit servicing. creditshelf thus gains access to additional tools for risk analysis and monitoring. Expansion of financing solutions to include secured loans Until now, creditshelf’ services mainly focused on unsecured loans between EUR 100,000 and EUR 5 million with a term of up to five years. With the acquisition of Valendo, creditshelf customers can now access additional and, above all, secured SME financing instruments. The two digital financiers thus complement each other perfectly in their portfolios and offer customers an attractive range of financing options to choose from. Companies that require liquidity for their further growth can use Valendo to borrow on their securities and thus obtain loans of between EUR 500,000 and EUR 3 million. The range of services ranges from inventory financing and factoring to tailor-made liquidity solutions. International network of investors and financial service providers The acquisition of Valendo is also accompanied by a cooperation with the Fintech ecosystem finleap. finleap was founded in Berlin in 2014 and has become the leading Fintech ecosystem in Europe. The finleap Group employs more than 800 people from over 60 nations. The network currently comprises 16 financial services companies that support SMEs in various industries by providing innovative financial solutions. This provides access to investors and market leaders in the fields of digital insurance, digital debt collection and cyber security. The following companies have emerged from this network: Solarisbank, the first banking platform with a full banking license, ELEMENT, a fully digital insurance provider, and PAIR Finance, a provider of databased receivables management. In addition, the finleap ecosystem supports partner companies in recruiting the greatest talents.

“With the acquisition of Valendo, we are driving forward our growth strategy based on software development, cooperations and an expansion of the product portfolio. At the same time, we gain access to the leading Fintech location of Berlin and its talent pool.” Dr. Tim Thabe, Co-founder and Member of the Board of Management, creditshelf Aktiengesellschaft

Who is Valendo? yy Founded in Berlin in 2015 as part of the finleap Group yy Expert in technology-based secured financing of SMEs yy Service provider for refinancing partners yy Focus on rapidly growing e-commerce companies yy Extensive know-how in the areas of asset backed lending, corporate finance and IT

Advantages of the partnership at a glance yy Member of Europe’s leading Fintech ecosystem finleap yy Branches in the central Fintech locations Berlin and Frankfurt yy Digital financing solutions for unsecured and secured loans yy Attractive financing portfolio, including risk analysis and monitoring

Trends

SME financing milestones Additional capital for business growth? In the history of mankind, it has never been so easy for a company to obtain borrowed capital as it is today. We present the history of the credit system in a brief retrospective.

50 B.C.

2,000 B.C.

The banking centre of the Romans is located on the Forum Romanum. Due to the high capital requirement - particularly for investments in lucrative public offices - an upper interest rate limit of 12% is set by law, but is often significantly exceeded. For reconstruction loans after a severe earthquake, private donors sometimes charge an annual interest rate of 40%.

Merchants finance trade caravans with copper, silver and gold from Anatolia to Assur in what is now Iraq, more than 1,000 kilometres away. The promissory notes of the caravan operators are traded like securities: Those who want their money back before the return of the caravan can sell their promissory notes - albeit at a substantial risk discount.

12th century

15th century

In medieval Europe the ban on interest enacted by the Catholic Church is in force. However, people of Jewish faith are not subject to this prohibition - in 1179 Pope Alexander III even expressly permitted them to lend money commercially, making them the only possible lenders. With this money, for example, craftsmen can buy larger quantities of goods seasonally, process them and then sell them for a profit later. The ban on interest is officially lifted in 1830 by Pope Pius VIII.

Jakob Fugger from Augsburg borrows money from Salzburg’s silver mine owners and for the first time has a kind of shareholding issued. Furthermore, he trades throughout Europe and finances trade between the North Sea and the Mediterranean. In 1494 his company becomes the first trading company in Europe.

1850

18th century

The first credit banks emerge, but have little interest in SME financing. As a result, more and more solidarity-based credit associations are formed to finance craft businesses and SMEs. They quickly develop into cooperative banks. Industrialisation significantly simplifies access to debt capital for SMEs.

The emergence of land registers in German cities facilitates the granting of mortgage loans. It is now possible for both individuals and businessmen to borrow on real estate in order to finance liquidity bottlenecks and growth.

1950 1920 Hyperinflation and the global economic crisis shape the 1920s. It is practically impossible for SMEs to obtain loans - if they do, it is only with short maturities and additional collateral. After Hitler’s seizure of power there are SME loans again - to correct the leftward shift of the SMEs.

Nº07 | December 2019 • creditshelf

The economic miracle shapes western post-war Germany: Debt capital becomes the preferred means of corporate financing, and bank loans gain in importance. In the GDR, banks are nationalised and loans are dictated by the state. Banks now only have the function of monitoring and controlling loans.

Stimuli

2019 Industry 4.0, self-learning machines and the Internet of Things characterise innovations in German SMEs. Digital SME financing continues to gain momentum. Through the use of artificial intelligence and alternative working methods, creditshelf aligns processes and procedures even more closely to customer needs. The risk analysis tools are continuously developed and the terms of the arranged loans are extended. The market partners are grateful: creditshelf was able to more than double its lending volume in the first half of the year compared with the previous year.

2014

2018 The new generation of innovative entrepreneurs in SMEs needs fresh capital for innovative ideas. The demand for alternative financing solutions is increasing. More and more companies use the purely digital financing process of creditshelf and turn the Fintech into the market leader in digital SME financing. During summer creditshelf goes public.

Dr. Daniel Bartsch and Dr. Tim Thabe develop the idea for a new business model and found creditshelf in December as pioneers of digital SME financing. The innovative financing platform considerably expands the scope of action for borrowers and lenders. New methods for data gathering, open system interfaces and intelligent analysis models form the basis for this. Creditshelf thus provides all the players involved with a wealth of information to grant loans within the shortest possible time.

2008 Following the burst of the US real estate bubble in 2007, Lehman Brothers files for bankruptcy in September and the global financial crisis takes its course. Interbank trading comes to a virtual standstill, “bank bailouts” and the “Greek crisis” make headlines. As a result, the requirements for the equity ratio and collateralisation of loans increase under the banner of “Basel II”. In many cases, credit interest rates for SMEs increase - the “credit crunch” haunts Germany.

2009 In the wake of the recession, the European Central Bank lowers the key interest rate to 1.0 % in several increments. Since 2012 it has continued to fall and reaches the 0.0% mark in 2016. Corporate loans become cheaper as a result - but are still difficult to obtain for SMEs in some cases because additional bank regulations with new equity guidelines and increased requirements on the creditworthiness and rating of borrowers come into play.

2000

2001 After factoring had already been used by large German companies in the 1950s, this alternative form of financing becomes more and more widespread in the German SME sector with the sale of receivables to third parties towards the end of the 20th century. In 2001, factoring companies found the German Federal Factoring Association for Medium-Sized Businesses. As a result, more and more companies strengthen their liquidity by selling receivables.

After surviving the millennium bug, the dotcom bubble bursts in March: High profit expectations and steadily rising share prices of companies in the digital revolution has led to exorbitant prices - which are now collapsing. Healthy SMEs also suffer from the loss of confidence in the IT industry. For them, it is almost impossible to obtain loans.

1962

1990

The first leasing companies are founded in Germany. They are faced with a series of obstacles: On the one hand, the legal and fiscal framework of the new investment form has not yet been defined, and on the other, entrepreneurial thinking is still strongly influenced by the idea of ownership. But soon the SME sector also recognises the advantages of this financing alternative.

After reunification, the German economy experiences a boom. Loans are granted with relative ease for both private individuals and corporate customers. Completing the loan application, collecting all the necessary documents and making an appointment with the bank’s or savings bank's corporate customer advisor is a timeconsuming process. If things need to move quickly, a fax machine can occasionally be used to send forgotten documents.

Stimuli

innovativE pErsonnEl managEmEnt Many HR departments are using outdated and inefficient IT software. Prof. Walter gora explains where one should apply pressure and how the shortage of skilled workers can be cushioned. Professor gora, how professional are the HR departments in SMEs? I’m afraid I have to say: not very professional. IT systems from the 1990s, which were adapted to the modified legal regulations but have many shortcomings, are often used for personnel-related activities. These systems barely manage to handle payroll accounting, but modern requirements such as personnel development or controlling cannot be supported. In addition, according to my practical experience, around 60 percent of companies have problems with the software they use.

the older ladies who immediately responded to our critical questions with a burst of anger: He had to work with an antiquated system with green letters on a dark background. Which software do you recommend to your SME customers? They should invest in an HR system that permanently improves complex systems of modern personnel management: Employee self-service, personnel acquisition and development are just as much a part of this as data management or a correspondence management system.

Why is it that so much obsolete software is used?

Isn’t such software very expensive?

Many employees in the human resources department are simply in love with their software - which certainly often has something to do with the age of the employees. We encountered exactly this situation in the case of an automotive supplier. But there was also a 30-year-old among

Not really, because the potential for profitability in personnel activities is often not recognised. In many companies, for example, payroll accounting costs 35 € per month for each employee. With a modern and integrated HR software these costs can be reduced to between 5 and 10 €.

Cooperation projects

I recommend to our customers that they take a look at it from the outside and then install better performance at a lower cost. In addition, time management systems can consume massive amounts of human resources. The shortage of skilled workers is a hot topic right now. How can this be countered? By producing more children. (laughs) Seriously: In addition to recruiting skilled workers from abroad, many German companies need better loyalty and identification in order to counter fluctuation and use employees as credible corporate ambassadors. A little recession would also help our labour market to somewhat reduce the current overemphasis on the work-life balance and promote more efficient working. How can companies attract skilled specialists today? Use social media - but strategically and sustainably! Time and money must be invested for this. We speak of â€˜human resource management 2.0â€™ when, for example, we arouse interest for the company in the applicant market, build awareness and improve our image in the long term and create a bond that can develop into an employment relationship.

Prof. Dr.-Ing. Walter gora Born in 1960, studied computer science at the University of ErlangenNuremberg and received his doctorate in 1988. As a consultant and Managing Director, he was involved in management and technology consulting for various companies. In 2004 he founded Valora Management Group GmbH, Valora Consulting GmbH and Cisar - consulting and solutions GmbH. As their Managing Partner, he works in the fields of organisation, information and communication technology, innovation, controlling and project management. Gora is a visiting professor at the University of the Arts in Berlin and teaches at the ZfU International Business School in Switzerland.

Special path? We offer you the necessary support! Sale & Lease Back as alternative financing for SMEs: Liquidity inflow through the purchase of your machines while you continue to use them Internal financing independent of banks and credit ratings Improve balance sheet figures and thus your rating Realise extraordinary income by raising hidden reserve

T +49 40 3003936-250 info@maturus.com Cooperation projects

www.maturus.com

Success through network

Trade fairs Convent Mittelstandstage (Convent SME Days): nationwide series of events

We are a digital enterprise, but attach great importance to engaging in personal contact with you. In a direct exchange we can best present and explain our visions, innovations, products and services. During various event formats, we do not only demonstrate which alternative financing options we have in our portfolio. We also share our practical experience with you and provide a glimpse behind the scenes at creditshelf. Network with us at the following events:

The “Convent Mittelstandstage” are part of a nationwide series of events that has been implemented at German economic hubs for almost 20 years. At the event you get the chance to meet managing directors and board members as well as decision-makers in owner-managed SMEs with a turnover of between EUR 5 million and EUR 150 million. We look forward to your participation at the following events: 55 • 16. Norddeutscher Unternehmertag (16th North German Entrepreneur Congress), Hamburg, 19/05/2020 • 5. Mittelstandsforum NRW (5th SME Forum NRW), Düsseldorf, June 2020 • Mittelstandstag Rheinland-Pfalz (SME day Rhineland-Palantine), Mainz, 04/06/2020

Events with creditshelf as the (co-) organiser

• Mittelstandsforum Schleswig-Holstein (SME Forum Schleswig-Holstein), Kiel, 11/06/2020

Finanz-Talk: Digitale Mittelstandsfinanzierung (Finance Talk: Digital SME Financing) As a result of the stricter capital requirements for banks, they are increasingly concentrating on large to very large companies. SMEs with a turnover below a certain threshold therefore find it difficult to obtain loans. For them, new providers - FinTechs such as creditshelf - offer an ideal alternative. These financiers are not only a useful addition to the credit market. They are also popular with SMEs due to their fast decisions and lean processes. If you would like to take part in the qualified exchange between Fintechs, representatives of established banks and financial experts, please make a note of these dates in 2020: 55 • Hamburg: 04/03/, 27/05/, 23/09/2020 • Berlin: 05/03/, 28/05/, 24/09/2020

• 17. Mittelstandsforum BW (17th SME Forum Baden-Württemberg), Stuttgart, 16/07/2020 • 19. Mittelstandstag FrankfurtRheinMain (19th SME day FrankfurtRhineMain, Frankfurt/Main, 05/11/2019 • 17. Mitteldeutscher Unternehmertag (17th Central German Entrepreneur Congress), Leipzig, 30/11/2020 16th “Structured Finance” congress Structured Finance is the congress fair for modern corporate finance with the highest CFO presence in Germany. Financial decision-makers in SMEs and listed companies enter into an exchange with providers of modern financing models. We invite you to engage with us at the 16th “Structured Finance” congress on 25-26/11/2020.

• Stuttgart: 11/03/, 17/06/, 14/10/2020 • Munich: 12/03/, 18/06/, 15/10/2020

Where: ICS - International Congress Centre Stuttgart

• Düsseldorf: 01/04/, 24/06/, 04/11/2020

When: 25 -26/11/2020

• Frankfurt am Main: 02/04/, 25/06/, 05/11/2020 We will inform you about our partners and locations in good time.

External events

Morning Meetup SMEs currently have access to a wide range of forms of financing for their financing projects. They can choose between crowdfunding, direct lending, factoring or finetrading. Which model is most suitable? At our morning meetups, we offer you the opportunity of getting to talk to representatives of various financing areas. The lectures will be enhanced by exciting practical examples. The exact dates for 2020 will follow. 55 • Frankfurt/Main, tba • Munich, tba • Hamburg, tba Speakers: creditshelf AG, Dr. Wieselhuber & Partner GmbH, Patrimonium Asset Management AG Media partner: Entrepreneur edition from GOING PUBLIC! 28

creditshelf will participate in the following events as a speaker, exhibitor and participant. We look forward to meeting you there and invite you to join us at: 55 • Frühjahrsfachtagung KMU-Berater (Spring Symposium for SME Consultants), Frankfurt/Main, 20/03/2020 • AltFi London Summit, London, 18/05/2020 • Lendit Fintech Europe, London, 23/-24/09/2020 • AltFi Global Summit 2020, tba • Familienunternehmertag 2020 (Family Entrepreneur Day 2020), tba • Deutscher Steuerberatertag 2020 (German Tax Consultants Day 2020), tba • Nachfolgerforum 2020 (Successor forum 2020), tba

Nº07 | December 2019 • creditshelf

Dates

Looking back creditshelf looks back on some great informative and entertaining events. Maybe we even talked to you about the new trends in the financing industry at one of the events. Have a look at some impressions in the following overview.

Großer Preis des deutschen Mittelstands (Grand Prize for German SMEs) on 14/09/2019 in Würzburg: Birgit Hass (Head of Marketing and Communication, creditshelf AG)

Morning Meetup on 11/09/2019 in Munich: Florian Weinkauf (Corporate Account Manager, creditshelf AG), Knud Dippel (Investment Manager, Patrimonium Asset Management AG), Christian Groschupp (Member of the Executive Board, Dr. Wieselhuber & Partner GmbH) and Volker Riedel (Partner, Dr. Wieselhuber & Partner GmbH) (from left to right)

NKF Fintech Summit on 18/09/2019 in Frankfurt/Main: Laura Gabriel (Marketing Manager, creditshelf AG) “Steuerberater unter sich” (“Tax consultants among themselves”), event of the BVMW on 17/09/2019 in Hanau: Beatrice Brenner (Heaf of BVMW Lower Main Regional Office) and Dr. Daniel Bartsch (Member of the Board of Management, creditshelf AG)

Finanz-Talk (Finance Talk) on 25/09/2019 in Hamburg: Stock exchange breakfast in the trading room of the Frankfurt Stock Exchange on 12/09/2019 in Frankfurt/Main: Birgit Hass (Head of Marketing and Communication, creditshelf AG) and Michael B. Thiriot (Head of Designated Sponsoring, ODDO SEYDLER BANK AG)

Equity Lounge by Dr. Wieselhuber & Partner GmbH on 18/09/2019 in Frankfurt/Main: Alexander Biesalski (Owner, Biesalski & Company) and Anna Schönfeld (Marketing, creditshelf AG)

Dates

Martin Schemm (Head of Product Partner Management, iwoca GmbH), Dr. Cyros Kalateh (Vice President Partnerships, auxmoney GmbH), Dr. Daniel Bartsch (Member of the Board of Management, creditshelf AG), Eva Sartorius (Member of the Executive Board, quickpaid by A.B.S. Global Factoring AG) and Lars Hille (Senior Partner, Roland Berger GmbH) (from left to right)

having opinions, sharing opinions Experts talk about the latest topics from the world of finance Change is taking place everywhere, be it in marketing communication, human resources or financing. The scattergun approach, for example, has become obsolete for some time now. But how do you reach potential customers? How do start-ups navigate through traditional markets? Are HR departments also affected by digitisation? And how do SMEs obtain the capital to finance all the innovations? We have allowed influencers from the financial sector to speak on these current topics.

Edda vogt, Executive Channel Manager / Website Manager / Financial Editor, Deutsche Bรถrse

Timm leibfried, Head of News & Stories, STATIoN ug

Mrs. vogt, how has the acceleration of information dissemination - especially through social media - changed the capital markets? While communication has become faster and more exciting, expectations have risen. More fragmented: Investors and traders are spread across many platforms - some of them in selfcontained spaces, like Guidants. More immediate, less controllable: Commentators can quickly reach the masses. Tweets from finanz-szene.de are sometimes better received than articles in the Bรถrsen-Zeitung. As such, influencers are increasingly replacing consultants. More vulnerable: False information can affect investors' decisions. The deliberate communication of false information is a massive risk to online enterprises. More transparent: Access to information is quick and easy. This puts pressure on banks' margins, dealers, and intermediaries.

Mr leibfried, from the outside it sometimes looks as if many start-ups prefer to deal with other start-ups ... The tension between the old and the new economy still exists, but is gradually diluting. Slowly, but it is happening. Synergies between actors on both sides can arise when challengers and established companies demand and promote mutual exchange. In the long run, however, a start-up will only be able to survive in the old economy if it delivers real innovation and measurable added value. On the other hand, there must also be a clear vision of the future based on a progressive, open mindset. Read more at: www.station-frankfurt.de

creditshelf-Magazin NO 7-EN