Why is financing so important?
The secured financing corresponds to securing existence and is the most important business objective. Corresponding importance is attached to the financing of companies.
As a rule, considerable potential for financing lies idle in companies. Particularly in times of crisis, management often becomes “blind” to financing opportunities that lie not only in financing from third parties but also, and above all, in financing from ongoing business. If funding sources are not tapped, companies can unnecessarily run into acute economic difficulties and even insolvency.
But even in the normal flow of business, companies’ cost of capital can be optimized and earnings improved through an appropriate financing mix. Therefore, it is worthwhile to carefully consider all sources of financing.
What are the basic financing options?
For companies, there are not only financing options through commercial banks, but also many alternative financing options.
In this chapter, you will learn how to discover internal company financing sources and which external financing sources are suitable for you. You will also learn what conditions for funding should be met and how to meet those conditions. This will enable you to systematically tap additional sources of financing for your company.