Corporate Financing

Small and medium sized enterprises show a clear preference for internal financing. Financing by means of captive liquidity requires the release of free funds, respectively cash. In short term such funds have to be looked for in the working capital. To create cash inventory, prepayments and accounts receivables have to be reduced whereas commercial credits have to be increased. We support you in the process of the optimization of your working capital.

Optimizing cash management has its limits as far as the financing of growth is concerned. Internal financing will allow a company only to grow in line with its return on equity percentage minus dividends paid to the shareholders. If a company intends or has to grow more quickly it has to look for external funding.

The classical bank loan is still the most common method for external funding. However, in the aftermath of the recent financial crisis many companies could not live up to the tightened credits conditions and could not or only partially cover their financial needs via bank loans. For these companies it might make sense to check alternative funding instruments. In addition to well-known instruments such as leasing or factoring alternatives as mezzanine financing or private equity financing should also be evaluated.

Successful growth financings are the result of careful planning and preparation, of a systematic search process, objective evaluation criteria, and goal-oriented negotiations. As independent advisors we support you in the preparation and implementation of your funding project.