Sustainable Financing for Creative Companies Through New Tools and Economic Capacities

The head of the Financing and Investment Development Center of the Science and Technology Vice Presidency of the Presidency outlined new financing solutions for creative companies.

According to the report of Ambassador Arjan, quoted by the Vice President for Science, Technology and Knowledge-Based Economy of the Presidency, Hamed Rafiei, the head of the Financing and Investment Development Center, in the specialized panel "Introduction of innovative financing solutions for creative companies" held at the national event of creative industries "Manveen", referring to the challenges of financing these companies, he said: "The problem is not only the lack of financial resources, but it is important to have sustainable access to resources and identify the economic capacities of companies to use various financing tools."

Stating that some of the creative industries companies do not have the possibility of using some conventional bank financing capacities due to not having the ISIC code and operating license related to the Ministry of Industry, Mines and Trade, Rafiei stated: The approach of the Center for Financing and Investment Development is to move from financing based on requests for facilities to financing based on the economic capacity of each company; An approach in which the company's needs, development plan, assets, and economic power are examined and financing tools are selected accordingly.

Referring to the capacities of the production and infrastructure financing law, he added: In the framework of this law and related regulations, 35 assets have been identified for verification, among which are intangible assets such as intellectual property, software, technical knowledge, contractual claims, and licenses. This capacity can provide the basis for the use of new financing tools, especially for companies in creative industries, where an important part of their economic value lies in their intellectual and intangible assets.

Emphasizing the necessity of official valuation of these assets, the head of the Investment Development and Financing Center stated: companies can value their intangible assets and reflect them in the financial statements by using the services of valuation companies licensed by the Scientific Vice-Chancellor. This action, in addition to providing the basis for asset verification, can help strengthen the financial structure of companies and increase their capacity to negotiate with financing institutions.

Rafiei also pointed to the importance of operationalizing the comprehensive collateral system and said: providing the possibility of registering and identifying intangible assets in this system will make the path of using these assets as collateral smoother. According to him, the development of this capacity requires the follow-up of companies and specialized organizations to accelerate the implementation of the foreseen mechanisms.

Sustainable financing with a complementary model

He further introduced the "Hamfaza" financing model as one of the solutions that can be used to create sustainable financing capacity of companies and explained: In this model, the contribution of companies is combined with the resources of financial institutions and the capacity of the banking network in order to provide the possibility of using working capital facilities and various financial services.

Describing the mechanism of this model, Rafiei said: Based on the presented model, it is possible to create the capacity of working capital facilities up to six times and financial services up to four times the amount of the company's income, through the cooperation of financial institutions and the operating bank. The mentioned financial services include tools such as factoring, steps, bills of exchange and letters of credit.

He added: The advantage of this approach is the creation of financing capacity beyond the primary sources and the possibility of continuing to use it. In such a way that by repaying the principal and interest of the facility, the resources return to the financing cycle. This model can be used for groups active in creative industries with the appropriate design and cooperation of financial institutions.

factoring; Cash flow based on sales

In another part of his speech, the head of the Center for Financing and Investment Development considered technological factoring as another tool that can be used to provide liquidity to companies and said: In this method, financing is done based on definitive sales and valid invoices, and companies can use their claims to provide the required liquidity without relying solely on bank facilities and traditional securities.

According to Rafiei, factoring is especially useful for companies that have technical and market capabilities, but there is a gap between the time of fulfilling obligations and the time of collecting their claims. Of course, the credibility of the contracting party, the ability to collect claims and the legal conditions of the transaction are decisive in the possibility of using this tool.

Referring to the role of guarantee capacities of the Innovation and Prosperity Fund in the development of technological factoring, he added: this tool can reduce the dependence of companies on bank loans, turn the sale of products and services into a lever for financing, and provide the connection to other financial tools.

Development of capital market tools for creative industries

Rafiei further listed technology development papers and financing based on intangible assets as other capacities that can be investigated for the development of companies' activities and emphasized the necessity of using tools that are appropriate to the size, growth stage and financial needs of each company.

He also suggested that by using the capacity of the Manvin event, selected companies of creative industries should be identified for evaluation and preparation for possible entry into the over-the-counter innovative market. According to him, large companies and buyers of creative industries products can also play a role in the development of businesses in this area through venture capital investment, participation in projects and creation of commercialization routes.

In summing up his words, the head of the Center for Financing and Development of Investment considered the design of an integrated system of financing tools necessary for the sustainable development of creative industries and noted: no single financial tool can meet all the needs of companies; Rather, by identifying the economic capacities, available resources and the needs of each company, appropriate tools should be connected to each other in order to provide the possibility of sustainable financing and market development of creative companies.