The publication of the annual financial statements has just begun. Over the next  weeks, depending on the financial report filing date, each company will be able to check its creditworthiness score on s-peek, updated to 2019. For many companies, this will be the trump card for access to finance.

Credit score: in 2020 will be higher

The crisis caused by Covid-19 led the Italian Government to launch several measures to support businesses. All actions are based on a common principle: to provide liquidity to those companies that, before the Coronavirus emergency, could prove to be in good economic and financial health. One of the main markers of a company's health is the credit score, the grade that assesses its economic-financial balance.

The credit score is calculated on the last annual financial statement. Which, however, refers to the previous year. The credit score for 2020 will therefore be calculated on the 2019 balance sheet data, when the economic fallout caused by the Coronavirus was still barely visible.

Financing facilities in 2020

The way a credit score is calculated makes 2020 the best year to apply for financing. From 2021 onwards, the economic impact of the lockdown will also be visible from the balance sheet data and many companies will encounter more difficulties in proving their creditworthiness.

The Liquidity Decree has also introduced several facilities for the current year, starting with access to the public guarantee. Until 31 December 2020, SMEs with less than 499 employees and natural persons engaged in commercial, artistic, or professional activities can obtain 100% coverage on loans of up to € 30.000 without any creditworthiness assessment. For  loans up to € 5 million, the guarantee covers up to 90% of the financing  and the creditworthiness assessment is calculated only on the last two financial statements (2018-2019)

The public guarantee also extended to most financial transactions. For example, it can also be requested for:

• financing already covered by a credit consortia (counter-guarantee);
• insured trade receivables (reinsurance) and factoring operations with recourse;
• funding provided by alternative channels (such as direct lending platforms) and minibond issues.

Companies are only left to assess the most appropriate solution according to their economic and financial situation.