How to obtain financing for companies in economic crisis?
These are difficult times for small and medium-sized businesses.
So much so that often how to get financing becomes the main concern.
These financing needs are exacerbated in the companies in bankruptcy.
Main causes in business crises
As we know, liquidity is essential for our business.
For this reason, many businesses in delicate situations present serious difficulties to survive and study how to obtain financing to avoid bankruptcy and redirect your situation towards a path of economic recovery.
Now,
do you know what are the main causes of crises in business?
These are the most common reasons:
Market changes.
Modifications in public preferences and the lack of technological advances complicate survival.
More competition.
Both local and global
Fiscal or legal changes.
A regulatory change can completely change the current environment of our business and harm our economic viability.
Unexpected fines or sanctions.
Unsuccessful business strategies
Erroneous economic-financial control.
Poor planning, incorrect risk management or unbalanced budgets cause economic losses in our company.
Treasury and liquidity problems.
An incorrect management of the client portfolio or an erroneous control of the treasury prevents companies from meeting their payment commitments.
High costs.
It happens when fixed or variable expenses skyrocket, raw materials rise in price, inventory deteriorates or expensive machines need to be renewed.
Wrong organization and management.
We want to highlight, in particular, one of the causes that we have discussed: liquidity failures.
Lacking the necessary money to face immediate payments leads the company to request urgent financing.
Getting that money can mean completely reversing your delicate financial situation.
Consequently, the key lies in the achievement of that financing.
How to obtain financing for companies in crisis or in bankruptcy
It is an unwritten rule of the market:
When things don't work properly, banks stop being a support.
Achieve financing for companies in crisis in conventional banking entities it is usually quite complicated.
The feasibility and economic solvency analyzes that they carry out end up, in general, advising against these loans or credits.
If that is achieved in the bank Financing for companies in bankruptcy or, simply in crisis, their conditions will be very demanding.
In fact, that it can become a real trap for your own survival in the medium and long term.
Then,
what alternatives are there?
Aid and public co-financing can be an alternative.
However, the existence of this economic support does not depend on us.
It will be the general economic situation that determines whether or not there is an opportunity to access this state aid.
Usually, it is not easy to access them, since many items must be fulfilled and extensive procedures must be carried out for their presentation.
Alternative formulas, coming from private capital, thus become the main option for Financing for companies in crisis and in bankruptcy.
The versatility of this financing and its adaptation to the needs of your business offer you greater advantages than conventional banking channels.
From the promissory note discount al invoice advancethe range is very wide.
To find out which one is right for you, you should contact a provider specialized in these solutions.
En WorkCapital We offer financing adapted to your needs to successfully alleviate these difficulties.
Call us and we will inform you without obligation!
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