Digital transformation requires not only technology but also the right financial decisions. The success of the process depends on selecting appropriate financing, clarifying investment plans, and properly managing application processes. We discussed all aspects of digital transformation financing with Bikem İnce İnanç, Founder and Financial Management Consultant at Malogra Consultancy.

In today’s rapidly evolving technological landscape, digital transformation is no longer just a priority for large-scale companies but for businesses of all sizes. However, this transformation process is not merely a matter of vision; it also requires serious financial planning and strategy. This is where digital transformation financing comes into play. These processes, which provide support to businesses in various areas such as software, hardware, consulting, and training, play a critical role in companies’ digital transformation journeys. To discuss the opportunities in this field, existing financing options, and the most common challenges, we sat down with Bikem İnce İnanç, Founder and Financial Management Consultant at Malogra Consultancy.

  • What is digital transformation financing and what does it cover?

Digital transformation financing covers financial support that facilitates the transition to digital technologies in all processes of businesses, from production to sales, human resources to customer service. The financing offered in this context is not only for software or hardware purchases; it also includes many items, from consulting services that enable companies to plan their digitalization journeys to digital maturity analyses. These programs, designed specifically for SMEs, aim to support both the technical and strategic dimensions of digitalization. Recently, protocols signed between government agencies and banks in Türkiye to provide credit at favorable interest rates have been an important step in facilitating this transformation.

“Financing is one of the most challenging areas”
  • What are the biggest financial obstacles SMEs face in their digitalization processes?

When SMEs want to take steps toward digitalization, financing is one of the most challenging areas. In particular, investments in software, machinery, and training, which are the first steps in transitioning to a technological infrastructure, often require high budgets. While businesses are busy covering their daily operating expenses, they struggle to allocate resources for long-term digital investments. Additionally, the fact that most digital transformation support programs are often limited to specific sectors or involve complex application processes restricts companies’ access to these opportunities. When combined with a lack of information, businesses may lack a clear roadmap for which technologies to invest in or how to leverage available support, leading to digital transformation remaining merely an intention rather than a reality.

“The government’s approach to digital transformation has translated into concrete steps”
  • What support does the Turkish government offer for digital transformation?

In recent years, the government’s approach to digital transformation has translated into concrete steps. In particular, KOSGEB’s SME Digital Transformation Support Program and Capacity Development Support Program are quite noteworthy in this regard. Through the program, companies can access loans ranging from 1 million TL to 20 million TL, with KOSGEB covering 20 percentage points of the interest on these loans. Additionally, digital maturity reports obtained from institutions such as TÜSSİDE and MEXT help companies plan their transformation processes more effectively. On the other hand, the Investment Incentive System has undergone its first comprehensive regulatory change in many years this year. The new system prioritizes software, high technology, and digitalization. Furthermore, TÜBİTAK publishes grant calls throughout the year for digitalization initiatives targeting different sizes and sectors. All of these represent important support mechanisms that facilitate digitalization.

“Companies investing in digital transformation are beginning to reap the rewards of these steps in a short period of time”
  • What can companies that are investing in digitalization through financing models expect to see in the short and medium term?

Companies investing in digital transformation are beginning to reap the rewards of these steps in a short period of time. For example, a company that digitizes its production processes can achieve concrete results such as increased efficiency, reduced error rates, and lower costs within the first few months. Digital control in areas such as inventory management, customer tracking, and order processes saves companies time and speeds up decision-making processes. In the medium term, the effects of digitalization become even more pronounced. Digital infrastructure plays a major role in goals such as entering new markets, increasing export capacity, and branding. In addition, these investments make companies more resilient to crises. During the pandemic, we all observed that digitally transformed businesses were able to adapt much more quickly than those with traditional structures. Therefore, these financing models play a significant role not