In the second commentary article in a series for Financer Worldwide, Emma Clark, head of business development, UK and Europe at Falcon Group, discusses that as oil revenues continue suffer and bank liquidity dries throughout the GCC region, corporates will continue to seek alternative means of financing than traditional bank lending.
Unhampered by the same regulatory restraints that regional and global banks face, alternative finance firms have been able to fund corporates’ day to day operations and growth through innovative solutions and by tailoring financing solutions to clients’ needs. In fact, the Cambridge Centre for Alternative Finance reported that total African and Middle East alternative finance markets grew by 59 percent in 2015.
With the global reach and adaptability these firms provide, corporates often find that specialist financers can accommodate their individual goals to a greater extent than traditional house banks. However, specialist financers should not be considered competitors to the banks, rather partners. Specialist financing can be combined with bank lending to achieve the best of both worlds: the resources of a global bank and the flexibility of a specialist.
The full article can be read here.