When it comes to financing, any entrepreneur or company of any size needs to find a balance between its resources (profits and partners’ capital) and those of other resources (third party resources, such as funding institutions, customers and suppliers).
We will provide you with information on the most suitable financing systems for your business
It is difficult to choose the right system for external financing; for it is necessary to adapt it to the characteristics of the business or the intended use of the money to be obtained.
Accordingly, several questions must be answered in order to choose the right financial product.
Questions about what financing system your company needs:
- Why do I need financing to buy long-term assets or meet current liquidity needs?
- Do we know exactly how much money we need or how much time we spend can change?
- What will be the costs (interest, commissions, etc.) that I will borrow?
Choosing the right kind of debt for each situation is very important to be clear about what we want to fund. In fact, if we want to fund a plan to invest in fixed assets (tangible or non-tangible), we should get long-term financing. On the contrary, if we need financing to buy goods or correct treasury imbalances, we will need to hire short-term financing.
Once the financing path has been chosen, we need to carefully examine the variables in the debt operations . For example, it is important to accurately quantify your financing needs (how much money will be required) in order to meet all the planned investment or to pay no interest on the unused amount.
It is also essential to consider when resources may be returned
In other words, delays must be avoided, as it is very expensive and dangerous. There is another thing to consider: the cost of financing.
The financing operations of a company include certain costs: interest, opening fees, non-use fees, early settlement fees, brokerage fees, etc. In this regard, interests are of particular importance, namely, how much money the financial institution gives us. This price may be fixed and/or variable:
- Fixed interest does not change during operations.
- The variable interest varies with market trends as it is linked to official indexes. Capital Lender is most commonly used in these interests.
Today, the market offers various financing formulas for companies and professionals. Loans and credits are the most popular. These are the tools that financial institutions generally offer, but what about loans and credits? When should it be done on one side and when on the other?
We help you decide the most interesting financing for your company, Fine Bank. We will talk?