If the funding of your business is what you need, keep yourself updated with the opportunities available for you today.
This could be a headline from a decade ago (now!), however, reality refutes us every day. During the seven-year economic crisis, business financing – through capital raising – seemed as case studies, at best and as a joke among business and banking cycles, at worst.
The essence, however, is somewhere else. It is in the fact that without revenue, the banks will remain in the vicious cycle of restructuring.
Fortunately, we are not the only ones who have realized it, as banking cycles and people διαλαλούν are asking for healthy business plans to fund them!
Reasons for declining business financing
In essence, all businesses can be potentially funded, except for those which have presented a long delay in payments or have been overleveraged in relation to their turnover. For example, when the company’s existing borrowing exceeds two or three times the turnover, or has overdue debts of several years (in this case, please read here). εδώ).
In particular, the fact that your business has a settlement with the bank, the tax registrar, or the EUSF or the insurance institutions, is not a reason for rejection of the funding. The majority of Greek businesses have been restructured and creditors are fully aware of this.
Also keep in mind that there is a possibility that your application will be rejected, if your previous application has already been rejected recently.
What you will need for business financing
To fund your business, you will need more than just a simple acquaintance (or even a good one) with the responsible bank employee, you will need a real “business plan”. And, of course, we are not talking about a business plan that will only analyze in depth generic factors, such as the requirements for an application in a development law. In this business plan, the industry historical analysis, its course from the past to the present and the general information, which everyone can have from all kinds of sources are not interesting factors.
Only specific information about your business is needed.
It should also be taken into account the provision of collateral to banks. The era of financing without collateral (of whatever collateral) is probably spent without gone for good. A collateral can be:
- Personal guarantees:
- The voluntary pre-notation on movable or immovable assets of the company and the shareholders.
- All intermediates from the above collateral, such as deposits, stock portfolio, corporate or public bonds, receivables, liabilities of suppliers, checks.
So facts! The most important thing you will need in the process of obtaining funding is data.
- individual results,
- supporting them
against the potential financier in order to be convinced of the robustness, integrity and realistic performance of the funding it provides.
Why; Because it is practically funded what obviously can return the capital back with a certain interest and over a certain time horizon. But the most important thing is … Do not knock the door of any donor without the necessary information.
“Consult your doctor or pharmacist,” say the advertisements for pharmaceuticals. We recommend that you contact someone who knows, has successfully resumed it, or can prevent you from attempting it immediately before you have made enough of your request.
In Mentory, we aspire to be your fellow travelers by providing banking mediation services with credibility, confidentiality and transparency. Solutions certainly exist for each case and are the result of knowledge, data, work and perspective.
To find out about the financing possibilities of your own business, contact us.