Weekly Finance Tips

Most companies that need to finance investment projects have the best partner to banks, which provide loans through the realization of investment projects. However, these models provide us with financing that banks are not sufficient to carry out our plans. To this we add the strict conditions that require collateral when granting a business loan, then we conclude that it is time to seek other funding sources. Today many companies have no access to bank credit.

The competitive pressure that exists in the financial sector is increasingly vocal and legal rules that drive the policy banks are increasingly stringent, these issues affect the relationship between the bank and its customer (company). After the international financial crisis, banks are more cautious, and with permanent future implementation of Basel II, relations between banks and companies will become difficult. If a company obtains a low credit rating or have a qualification, then it is almost certain that this company will not obtain the loan necessary for your project. It’s more difficult to raise capital for young innovative companies dedicated mainly to the technological field which requires a large sum of risky capital, for this is almost impossible to access traditional bank financing.

Companies must learn and find new financing alternatives. If the company is not effectively exploiting existing funding sources, then this indicates that we must consider alternatives to fund our projects.

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