1. My bank no longer gives me credit, how can I finance myself?
Unfortunately, we have all felt that our trusted bank has turned its back on us when we needed it most.
It is not something personal, but the consequence of applying the criteria of prudence, solvency and control of financial risks in the financing for companies or individuals.
2. What if your usual bank no longer gives you credit?
In difficult situations, we all try to turn to those we know. It is natural, since it makes us feel more secure and calm. However, when the liquidity problems arrive, this formula does not usually work.
Sometimes your usual bank does not respond as expected when your accounts do not add up. If your liquidity problems exceed the risk that can be assumed by the bank, the system will deny your application for financing.
When your bank always looks the other way instead of giving you that much-needed financing, you learn the lesson and discover that you must be open to news and new financial alternatives.
Bank loyalty is not an obligation or a gift, but rather a reward.
So, paradoxically, that painful initial disappointment turns into a opportunity to improve your financing for company.
You want to know how?
3. When alternative financing comes to your rescue
When you have critical financing problems, it is very complex and almost impossible to exceed the solvency standards that traditional banking requires.
The great advantage of alternative financing is its flexibility. Allows you to access imaginative and dynamic formulas, adapted to your economic situation.
4. What alternative financing options for companies can you use?
We detail below some options that may be of interest to you:
- invoice advance. Do you have invoices pending collection whose expiration affects your treasury tensions? He Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking allows you to convert your credit sales into cash sales.
- promissory note discount. It is a similar system, although in this case you anticipate the collection of payment documents. You can do it with or without recourse, that is, ceding the risk of non-payment or assuming it yourself.
- Direct lending. Where banks do not arrive, private investors will provide you with solutions. Thanks to them, you will obtain that loan that will solve your liquidity problems with maximum flexibility.
- Equity. On these occasions, the investor goes one step further and seeks a stake in the company as a reward for his economic contribution. What if having a new partner was the solution?
- venture capital. There are professional investment groups that finance start-ups and other emerging companies in exchange for shares or dividends. If your project is really promising, it may be what you need.
As you can see, there are many options to traditional banking. Therefore, although the solution is not found in your trusted bank, there is a universe of new financial possibilities.
En WorkCapital, we are leaders in the financing of current assets in Spain, contact us and make our know-how work in your favour.
