Access to finance is not only a strategic issue shaping the future of industrialists but also of the Turkish economy. Steps taken in this area directly determine production power, employment, and global competitiveness.
Mehmet Hakan ATALAY
Başkent Plastic Industrialists and Business People (BAPSİD)
Chairman of the Board
The growth, transformation, and increase in global competitiveness of industry largely depend on access to finance. From raw material procurement to increasing production capacity, from technology investments to export activities, industrialists need sufficient and cost-effective resources at every step. This need is critical not only at the enterprise level but also for the overall health of the country's economy.
In recent years, industrialists in Turkey have faced significant obstacles in accessing finance. Rising interest rates due to economic fluctuations have increased credit costs. Especially small and medium-sized industrial enterprises struggle to borrow under the burden of high interest rates and are forced to postpone investment decisions.
COLLATERAL INSUFFICIENCY…
Another significant problem is the inadequacy of collateral. Banks demand strong collateral when granting loans; however, many businesses, especially newly established ones, struggle to provide this collateral. In addition, complex bureaucratic processes and extensive document demands encountered in loan applications consume businesses' time, slowing down and complicating the process.
Credit scores also stand out as a determining factor in this process. Negative financial situations experienced in the past can become a serious obstacle to accessing credit today. Exporting industrialists, on the other hand, face difficulties in accessing long-term and foreign currency-based credit sources. Currency fluctuations and uncertainties in international markets make this process even more fragile.
Finally, the insufficient widespread adoption of alternative financing methods in Turkey is also a significant shortcoming. Alternative models such as leasing, factoring, venture capital, and crowdfunding are still used by a limited number of businesses. However, these tools can offer more flexible solutions compared to the traditional banking system.
OPPORTUNITIES AND AREAS FOR DEVELOPMENT
Despite all these challenges, there are some opportunities and solutions available to facilitate industrialists' access to finance. Firstly, publicly supported incentive mechanisms play a significant role in this area. Grants, interest-subsidized loans, and investment incentives provided by KOSGEB, TÜBİTAK, and the Ministry of Industry and Technology act as a lifeline, especially for projects focused on technology, digitalization, and green transformation.
The Credit Guarantee Fund (KGF) stands out as a solution to the collateral problem. KGF facilitates access to credit by acting as a guarantor to banks. This model plays an important role in helping SMEs overcome financial barriers.
EFFECTIVE ACCESS TO FINANCE FOR A STRONGER INDUSTRY
Access to finance for industrialists is a strategic issue not only for individual businesses but for the future of the entire economy. An industrialist who cannot access financing resources fairly, quickly, and sustainably is destined to fall behind in production, exports, and employment... Therefore, strengthening public policies, making the financial sector more flexible, and guiding industrialists towards alternative resources are of great importance.
Eliminating blockages in access to finance not only boosts industrial production but also paves the way for sustainable growth that will solidify Turkey's position in the global economy.
This content has been translated using artificial intelligence technology.