The acquisition of certain equipment or the buyout of a company are all investments that require the use of long-term credit , such as 84 months. Entrepreneurs, do you want to find alternative financing to bank credit? Realize your project thanks to crowdlending!
The duration of funding should always adapt to the needs of the business and match the business cycle of the business.
Cash flow requirements , customer payment terms or the purchase of goods are financed in the short term because they are not intended to remain in the company for a long time.
So, for example, for goods that are durable and used over a long period such as a production line or construction machinery, long-term financing is the most appropriate choice.
In order to develop a business or maintain its production facilities in the face of competition, businesses have no other choice but to invest. The financing needs are often important and the appeal to a financial organization is very often necessary.
The establishment of long-term financing makes it possible to avoid self-financing all or part of an investment and thus preserve its cash flow for the daily needs of the company.
What are the ways to finance an investment?
- Self-financing : The amount of investments being significant, this requires you to have a sufficient level of cash. However, this cash would no longer be available for your daily needs.
- Leasing : The company pays a fixed rent each month for the use of the property. At the end of the contract, the company has two options, to buy back the equipment or return it to the lessor. However, leasing remains an expensive and restrictive option.
The bank loan remains one of the preferred solutions for financing the buyout of businesses, business assets or material investments.
However, banks are known to be cautious. In addition to an irreproachable file and a detailed business plan, they ask business leaders for significant guarantees and in almost all cases to pledge their personal guarantee on the various financings .
Since the 2008 crisis, the conditions for granting bank loans have tightened significantly. In this context, companies applying for credit are more often refused, even for small amounts. This is even more true for SMEs and VSEs.
However, changes in the regulatory framework and advances in information technology allow new players to appear and offer credit solutions to get out of banking dependency.
The equity loan is one of these new solutions that help companies access long-term financing . In practice, through an online platform, individuals and businesses lend a sum of money to a defined project. Their participation is then rewarded with interest on the loan. Companies wishing to borrow, for their part, are selected strictly, after in-depth analysis of banking and accounting elements.
Then, once the project is validated, fundraising usually takes a few days , depending on the desired amount. The remuneration of lenders to the project begins the month following the payment of the borrowed capital.
whimblegardens.co.uk , number 1 in France in crowdlending, allows you to borrow directly from a community of individuals and companies, which chooses to support you.
whimblegardens.co.uk offers fast and simple services tailored to all borrowers' needs, with loans ranging from 12 to 84 months. Find your long-term financing solution thanks to crowdlending.
Interested in this type of financing? Complete your loan request in a few minutes by clicking on the tab below.