Regarding subsidized finance, the possibility of getting your hands on funds, incentives and contributions can only act as an irresistible attraction. No entrepreneur does not appreciate restructuring or modernizing his own company by benefiting from important concessions or drawing, in part or entirely, on capital made available by third parties. And this, of course, mainly attracts micro-companies and SMEs (Small and Medium Enterprises ).
It is also true, however, that very few strive to have access to certain financing instruments for businesses, just as even fewer know that they can be exploited to make the long journey towards digitization more sustainable and “lighter “. Having established this, before analyzing the relationship between subsidized loans and digital innovation, let’s try to understand what subsidized finance consists of and what bonuses and advantages a company can enjoy, which, for example, wins a tender.
Subsidized Finance And Calls For Tenders: General Lines
Wanting to give a simple definition that is within everyone’s reach, the term subsidized finance is intended to identify that varied and full-bodied set of financial instruments (contributions, incentives, bonuses, zero-interest or non-repayable loans, etc.) made available to companies to undertake and carry out certain projects.
The main tool through which companies access these concessions and resources is the so-called “announcement”, i.e. a sort of “competition” whose participation, depending on the case, can be aimed at companies located in the European, national, regional and provincial. For example, the invitations to tender published by the MISE are always national, while those announced by the Chambers of Commerce are limited to the province to which they belong.
Non-Repayable Loans: How They Work
Certainly, among the various possibilities listed so far, the formula that has most attracted your attention is that of non-repayable loans – shhh! – it is useful for you to know that their disbursement often follows the reporting process, i.e. it is:
- The company presents its project to the promoter of the tender.
- If the project is approved, the institution assigns the grant.
- The company advances the project’s costs, i.e., pays the suppliers.
- Following the reporting of the invoices, the institution reimburses the expenses incurred by the company (to the extent envisaged by the notice)
The percentage of expenditure the grant covers varies but is usually between 50% and 70% of eligible expenditure. If I present a project whose total eligible expenses are equal to 100,000 euros, I can obtain a refund ranging from 50 to 70,000 euros. Not bad as a “help”, right?
What Can Subsidized Finance Do For Digital?
It has been about a couple of years since the digital sphere was admitted among those who enjoy the support of subsidized finance. The reason is that since Italy could be a more brilliant country in digital innovation, the institutions want to encourage local companies to overcome this deficit and align themselves with world standards. Proof of this is that, between 2019 and 2020, calls for tenders relating to Cloud Computing, Artificial Intelligence, Big Data, eCommerce, and other projects have gradually increased.
And this leads us to think that this trend will be further confirmed, especially in the year following the Coronavirus pandemic. The European Community and the State have said they are ready to support companies that intend to invest in online and Digital Innovation importantly, so I can only advise you to keep your eyes and ears open.
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