Same day online payday loans direct lenders -Payday companies direct lenders

Thanks to borrowing extra money with little income, getting around a little easier.

It is understandable that many people in this time of economic crisis are not able to have all their finances in order and to make ends meet. Many have to do it suddenly with a lower income, others get completely unemployed. What can you do in these situations? In most cases, the costs (such as fixed costs) cannot be reduced, so you will have to be able to make extra money in a certain way. This can be done, for example, by selling old things or by borrowing money from friends. Unfortunately, these options are not always possible and that is why it is very important that closing a small loan is within reach for everyone. However, difficult factors with traditional lenders are often blacklist registration, debts in the past, lack proper documentation or ownership.

Payday companies direct lenders: Approvals in 24 hours

Perhaps you are struggling with the same problems as those described above and there are obstacles that make borrowing money impossible for you. Then there is good news: nowadays there are many different payday companies direct lenders on the internet, which are open 24 hours! and make borrowing money much more accessible. They omit strict conditions such as agreements, paperwork and blacklist assessments. How is that possible? They provide some loans of small amounts, which means that the risks they run remain low. If you are older than 21 and have a fixed income, it will also allow you to borrow money while you have little income. For example, a benefit or maintenance is simply income.

How much extra money to borrow with little income?

As mentioned above, it only concerns loans of small amounts. A small amount generally means loans up to a maximum of 1000 euros. So if you want to borrow 200 euros for groceries, 650 euros for a new laptop or 800 euros for a renovation, this can be arranged with these loans. In some cases, you can also choose to take out a loan from various loan providers and to combine the amounts, so that you can have a larger amount of money. In some cases, this is not a good idea, because of possible money problems. Moreover, borrowing more than 2000 euros is usually not feasible. In this case, therefore, it is only loans of small amounts, but loans that are easy and quick for anyone who needs extra money to close.

This way you can borrow extra money with little income

Borrowing money through these online lenders is often very easy to arrange. This is because there are no conditions, mandatory agreements or a blacklist assessment. The conclusion of an online loan is therefore already regulated by searching a suitable provider online, completing the application form and waiting for confirmation. Some loan providers allow you to receive money in your account within 10 minutes. Always read the conditions carefully and determine what is feasible in your personal situation, in order to avoid money problems or debts.

Earnings and the amount of the business loan

Zarobki a wysokość pożyczki 2017-04-28 13:37:22 | Aasa Poland

In order to obtain a business loan, we must meet the relevant requirements. One of the most important of them is to have adequate creditworthiness, which is calculated on the basis of income and expenses. How do you earn up to the amount of the loan?

When looking for a business loan , we often look at what the maximum amount is. Most loan offers have a fixed maximum amount, but how much we get depends on us, and more specifically on our creditworthiness. It is calculated on the basis of a number of different factors that determine which loan or loan installments we will be able to afford.

When we have high creditworthiness – we earn a lot and we do not have high expenses, for example other loans and credits, maintenance, bills, then we will also get a loan for a high sum. Otherwise, it will be lower and matched to how much you earn. Usually the maximum loan installment amount is approximately 1/3 of monthly earnings.

If you want to find out what cash loan you can get, it’s best to use special loan calculators. However, let us remember that they only give the approximate result, and everything is dependent on the bank or non-bank company we submit your application to.

For example, if we have a minimum wage, we can count on a loan of about 5,000 to as much as 20,000 PLN depending on the offer, without any additional collateral. Of course, the higher your earnings, the higher this limit will be, but let’s not forget about the burden and family situation. To calculate the ability, the following data is taken into account: monthly family income, number of people in the family, and fixed monthly expenses.

The higher the number of installments, the higher the business loan

Remember that the maximum loan amount also depends on the number of installments. When we want a higher sum, the best solution will be a cash loan, because then we can spread our debt into smaller installments that are easier to repay. If we took a break, then we would have to repay the whole in one installment, which would be a heavy burden on the household budget.

If we want to borrow a larger sum, we can usually adjust the amount of the loan to our financial capabilities. In Aasa Poland you can do it on our home page, where there is a special loan calculator. When we do not earn a lot and spread the amount for a larger number of installments, then we will be able to get a loan more easily than if we would have chosen a shorter repayment period.

Can we get a business loan without earnings?

Unfortunately, this is usually not always possible. At present, both banks and loan companies require clients to have permanent sources of income, for example from a contract of employment, pension or annuity.

When we do not make money, we can get loans from some non-bank companies, but then we have to prepare for very high costs to pay.

Taking a loan – the three best tips

Who wants to take a loan , finds a large number of different offers. It is sometimes not easy to distinguish good from bad credit. But with these three tips you will reach your destination quickly and safely.

Tip 1: Take credit online

Of course, it makes sense to first ask the house bank if you want to take a loan. But there are often only very attractive conditions for existing customers. In addition, the big banks even with minor blemishes in the credit score information lower the thumb and no loan. On the Internet, you will find credit partners like Gandalf, which help you quickly and unbureaucratically – even if others have already rejected.

Tip 2: Only take loans without any cost

At Gandalf you get your personal loan offer always without any cost. Unfortunately, not all providers work so seriously. Many (alleged) credit intermediaries send bills and want to forgive the (supposed) credit only after a payment. Others send a lot of printed paper cash on delivery. But the “loan documents” in the expensive paid envelope are in many cases practically worthless. Another scam: Consumers who are actually looking for a loan are offered a “financial rehabilitation”. Again, there are a lot of costs, but fresh money does not flow into the account.

Therefore: Never accept upfront costs! At Gandalf you benefit from the free guarantee. Neither for your request nor for your loan offer you have to pay one cent in advance. And of course, if you refuse, you will not be charged.

Tip 3: First compare (let), then take credit

Before you take a loan and put your signature under a credit agreement, you should make sure that this loan is actually good and cheap. For this you need several offers in advance – only then can you find the best offer.
The complicated way is the request from various banks and credit intermediaries. In the end, you will ideally have several offers on the table that you can compare. An important tip: Please always compare the annual percentage rate, because only it contains all relevant credit costs.

The alternative to looking for a loan on your own and the much easier way is to request a credit card . Here you can reach up to 20 different banks with just one request. And you do not have to check for yourself which loan is really good – this is the important task that the credit professionals at Gandalf are happy to take care of.

Business Plan and Business Loans for Financing

 

People in Germany are getting older and older and the demand for outpatient care services is growing. If you are looking for a meaningful job and like to be there for others, starting a nursing service may be the right thing for you.

In this article, you will find out which legal regulations you have to observe (some!) And what are the biggest challenges in the nursing foundation. At the end we tell you what Christoph Kahl, who has become self-employed with a care service for seniors and families, advises others who want to follow his example.

You should bring with you: Professional and personal requirements

You should bring with you: Professional and personal requirements

More than in other areas, the professional and personal requirements of the founders count in the care sector. A sound education, empathy and organizational skills are good prerequisites to be able to cope with the manifold tasks.

But it’s not just about nursing know-how, you should also be able to handle money. Because in order to be responsible for your patients, you must also make sure that your care service is economical and reliable.

Since care is about people who depend on outside help, this area is heavily regulated. The Social Code (SGB) stipulates which requirements you have to fulfill. In order to start a nursing service you need a geriatric nursing education (or a training as a nurse in nursing or nursing) and at least two years of experience in this profession, which may not have been more than eight years old (§ 71 SGB XI). In addition, as part of a training course, you must have undergone further training in the nursing management (PDL) or have a nursing management degree program at a university or college.

You have no training in nursing management, but are an organizational talent and love the handling of numbers and bookkeeping? Then you can still start a nursing service, as a holder or owner – provided you hire someone with the statutory qualification as nursing service.

This is how you calculate your benefits

This is how you calculate your benefits

The costs of the services you provide with your care service are largely covered by the care funds. In order to settle with the funds, you need a formal admission. It is linked to various conditions: The management of the nursing service by a qualified specialist is one of them. In addition, you must be able to guarantee that your patients are well looked after at all times – even on weekends and when an employee suddenly falls ill or is on vacation. This means that you need enough nurses who can represent each other. Also for the management, you have to hire a substitute who takes a break in the event of illness or vacation.

In addition, a hygiene plan and internal quality management are prescribed by law, which are reviewed by the Medical Service (MDK) prior to approval and later during ongoing operation. In particular, the MDK pays attention to the size, qualification and further education of the workforce, to the constant accessibility of the nursing service, to the care concept, the documentation of care and to the counseling and participation of patients and their relatives.

The admission procedure by the nursing and health insurance is very extensive and can take some time. Take care of it in good time, so that you do not create unnecessary idling phases before the foundation. Important: The Social Code distinguishes between home nursing, which is prescribed for a doctor and has a fixed duration (for example, after surgery), and outpatient care. For each form of care you have to apply for a separate admission.

In addition to the cash register, you need an institution code, also called the IK number. You can apply for it at the collection and distribution office (SVI) of the Arbeitsgemeinschaft Institutionskennzeichen.

When the test procedure is completed and the official approval is obtained, you have to conclude a supply contract with the care funds. It is agreed in which catchment area you take over which care services.

Billing with the nursing care funds is nowadays only done electronically via data medium exchange (DTA), which makes things easier for you. Since sensitive data is involved and the nursing care funds have to bill with countless care facilities, the billing procedure is meticulously regulated.

So you write a business plan for your nursing service

So you write a business plan for your nursing service

As with any business startup, a business plan is indispensable if you do not want to start self-employment in blind flight. When writing you will inevitably be confronted with all the questions about your business idea, which should be clarified before the foundation: from the legal provisions and approvals to the appropriate positioning to the question of where you can find suitable professionals and how you bind them to you permanently want. In your business plan you deal intensively with the market and the competition, the opportunities and risks, and explain the measures you want to take to ensure that your care service works reliably and economically.

Your business plan will show you if you can meet the high quality standards and at the same time work cost-effectively. He is also the prerequisite to get a public start-up promotion or a bank loan.

The site

The site

The population in Germany is getting older and older and the need for care services is growing. However, this does not apply to all regions to the same extent. And even the competition does not sleep, as the saying goes. That’s why you should choose your location wisely. In your business plan, show how much supply and demand is in your catchment area and how it’s likely to develop.

However, location is not only interesting for your readership on a geographical level. It is also about the premises in which your care service is to be housed. Although the people in need of care are looked after in their home, you still need an office and a contact point for customers and staff. Your nursing service should be centrally located, easily accessible and barrier-free and provide enough space for training and meetings.

Animate to exercise, train the motor skills: quite a nursing task.

Market and competition

Closely related to the location issue is the business plan chapter on the market and the competition. The numerical base for your market analysis provides you with official population statistics, broken down to the catchment area in question. In addition, many communities have old-age benefit plans that include forecasts of future care needs on the ground. Using this data, you can see how big the market is that you are entering and what the development is likely to be.

Then you research what the supply side looks like: how many care services and health facilities are there on the ground? How many patients are cared for by them? Which care services do they offer and with which strategies do they try to gain patients? Most of the answers to these questions can be found on the Internet, for example in business directories and on the websites of the individual providers. It may also be worthwhile to make a small impression of the existing offer during a short trip on site. But do not overdo it: your competitive analysis does not have to include every single nursing service. It is better to pick out five to ten of your main competitors and describe how they each hold their own in the market.

This is how you find your unique selling point

In order to lead your care service into a secure future, you should position yourself clearly in the market. Think about how you can differentiate yourself from the existing offer. You can concentrate on a nursing specialty, such as the care of intensive care patients after outpatient surgery or on the care of incurable sufferers (palliative care). Or you rely on culture-sensitive care or another special understanding of values that sets you apart from other providers.

You can not develop a business idea that thrills your patients at the desk. It is important that you talk to your target audience about their needs and desires. Use your personal network and nursing experience, talk to prospective clients and loved ones about their expectations of good care, and check with healthcare professionals about local demand.

In the intensive engagement with your target group, with the care offer and the care needs in your region you will get an ever clearer picture of how you could differentiate yourself from your competitors and which niches are not yet occupied. Now you must not forget to summarize your thoughts comprehensible in your business plan – because even your readers would like to know how you have found your positioning and why you believe that you will succeed with it.

Rattling is part of the craft

Demographic change or not: the foundation of a nursing service is not a matter of course. You have to make sure that people hear about your offer and its uniqueness. How you want to achieve that is an important point in your business plan.

For a nursing service there are three addressee groups with different interests in marketing:

  • of care
  • member
  • Mediators (hospitals, nursing homes etc)

Set up a marketing strategy that will do justice to these three groups. While you may reach your real target group, the elderly, with flyers that you can lay out at the barber’s, you can address your loved ones quickly and inexpensively through social media. The Internet is today the most important source of information – a compelling corporate website is therefore mandatory. Recommendation portals also play an important role. Think about how you can encourage your satisfied customers to rate you online.

Health care institutions, especially nursing homes and hospitals, are worth a personal visit to introduce you to nursing.

Specialists – urgently needed

Specialists - urgently needed

The shortage of skilled workers is particularly noticeable in the nursing sector. The question of how to attract and retain qualified personnel for your nursing service has become as important as the question of customer acquisition.

Think in advance of how you want to recruit your team. Maybe you still have contacts to colleagues from your job or training who would like to work for you? Then you should definitely mention that in your business plan. Also, describe what you want to offer your people so they can hire and stay with your young business for as long as possible: fair pay, family-friendly working hours, regular training, and decent working conditions are not enough. The most important thing is probably a good working atmosphere, which should be more than an empty promise.

Which legal form is the right one?

Which legal form is the right one?

One of the many questions that you need to clarify is the question of the right legal form for your nursing service. It affects, among other things, liability, tax and accounting.

With little effort is the creation of a sole proprietorship: You need no seed capital and no complicated contracts. However, you are liable for all of your personal wealth should your care go broke. To hedge your assets, it may be advisable to establish a limited liability company (GmbH) or an entrepreneurial company (UG). Then you only stick with your deposit. These legal forms are associated with certain accounting obligations. However, since nursing services have to demonstrate their profitability with an annual balance sheet anyway, this argument hardly matters.

All in all, it is not possible to say which legal form best suits your company. You can read online and decide for yourself – or discuss the subject with professionals. These may be corporate lawyers, but also a tax consultancy that is knowledgeable in the industry. Incidentally, it is possible to change the legal form. So you can start as a sole proprietorship and later convert this into a UG or GmbH.

Costs, capital requirements and financing

 

In a company not only money is earned, money is also spent. A nursing service is no exception. In order to assess whether and when your nursing service pays off, you must know the costs that arise.

These are the most important costs of a nursing service:

  • Salaries and other personnel costs (training, health care, etc.)
  • Cost of remodeling and furnishing the business premises
  • Rent (including utilities)
  • Insurance
  • Costs for vehicles (including fuel, taxes, maintenance and insurance)
  • marketing

This list is not complete. There are many more issues added, such as the purchase and cleaning of clothing or disinfectants and disposable gloves. Write down everything you can think of for your business plan. Then calculate the amount and research the price. Sometimes a look at current price lists is sufficient, sometimes it is necessary to request a quote.

For funding and later billing, it’s important to split your costs into three categories:

  • Start-up costs (roughly: everything you spend before the actual start-up)
  • Investments (for things that you can touch and usually use over a long period of time)
  • ongoing operating expenses

Be sure to spend enough money in your financial plan to help you get started. In the first few months after founding, your nursing service may not be fully utilized. In addition, you can only bill your services with the care funds and patients after you have provided them. Your landlord or your staff expects you to transfer their money on time. With solid cash planning, make sure you are always liquid to settle outstanding bills.

Most founders rely on mixed financing, which is made up of their savings, loans, and public funding. No matter whether you borrow money from the bank or apply for a loan from the regional investment bank or the nationwide KfW: Without a solid business plan, which proves the feasibility of your project, it does not work!

Accounting obligations for outpatient care services

Accounting obligations for outpatient care services

As the owner of a nursing service, you must be able to guarantee the care of your patients. Imagine, you are slipping into bankruptcy. Then that’s not just annoying for the patients – maybe their health or even their lives are in danger if suddenly they are no longer being cared for! In order to rule out this case as well as possible, the legislator has laid down certain rules with regard to operational management. Thus, according to the Nursing Implementation Regulation (PBV), every nursing service must submit once a year a balance sheet, a profit and loss account and other evidence that he is working in business administration.

This makes the bookkeeping for care services a bit complicated. With a tax accountancy office that has PBV experience and industry-standard accounting programs, you can make your life easier.

Excluded from PBV are small care services with less than seven full-time employees and an annual turnover of less than € 250,000. These establishments only have to submit an income surplus calculation (EÜR) at the end of the year. It may be a good idea to start small to familiarize yourself with the regulatory requirements in the nursing sector, and then gradually grow when your nursing job is well underway.

Founding tips from experienced experts

Who would know better what it takes to start a nursing service, as one who has already taken this step successfully? We asked Christoph Kahl, who founded a nursing and care service a few years ago.

Here are his most important tips!

… about finance:

“Keep an eye on your liquidity” is Christoph’s first and most important tip to all those who want to found a nursing service. Careful liquidity planning in the business plan is the best preparation for the foundation.
In addition, factoring is an appropriate way to secure solvency. When factoring, you transfer your unpaid bills to a bank for a fee, which in turn demands the money from the care funds. “That’s not as expensive as you think,” says Christoph. However, it would be important to find a reputable financial services provider that offers fair conditions and does not jeopardize their own reputation. He himself has had good experiences with the Bank for Social Policy, which pays the outstanding bills for a fee of 0.7%.

… about growth:

“Start small and do not grow too fast,” is the advice of Christopher on this topic. Many care services are taking on growth, thereby putting their liquidity at risk. Because the bigger the team is, the higher will be the sum, which must be advanced for salaries. “Growth is only possible if you have enough reserves to afford it.”

… about marketing

“We cleaned many latches at the beginning,” recalls Christoph. “We introduced ourselves to all the important points of contact in the region, such as hospitals, doctors and nursing homes.” The response was very good “Basically, they were glad to know who they could put their patients through.” the foundation distributed quite classic handouts.

… about values

Christoph is convinced: A care service should not be opened out of purely economic interest. “The special thing about such a company is that you work with people for people.” That was an enormous responsibility, which one must be aware of. “I myself was looking for a meaningful activity. When I learned of the opportunity to start a nursing and care service in the franchise, I was immediately convinced. “

Conclusion

Conclusion

The establishment of a nursing service is a demanding task, but offers excellent opportunities due to the steadily growing demand. A good idea is to start small and then gradually grow – also because of the shortage of skilled workers in the nursing sector. So you can build yourself a safe and fulfilling existence.

 About the author Founding expert dr. Jan Evers is the owner of the consulting firm evers & jung in Hamburg. For ministries, banks and business development organizations, evers & jung GmbH has been developing concepts and solutions for entrepreneurs for more than 15 years that make entrepreneurship easier and more self-reliant.

 

Uncategorized

Business Loans- How to Set Up Your Total Debt Money

 

 

 

Your Choices are Rising Due to Elections!

 

Your Choices are Rising Due to Elections!

 

 

 

 

The government plans to regulate the 120 doses for all, New Democracy. That is to say they can settle debts up to € 5,000 for employees, employees, pensioners and professionals.

Let’s see for 120 doses what will happen. This development, according to Professor of Taxation, G. Christopoulos, is particularly important.

1. The condition will be to pay current contributions.

2. Do not have any interested parties involved in extra-judicial proceedings.

3. Setting will be for 12, 36, 48 doses up to 100-120.

4. Condition for no debt after 1 / 1.2018.

5. Those who did not go to the extrajudicial regime are enrolled.

6. Do not get those who have gone bankrupt.

7. Enter sustainable businesses.

8. It will concern debts up to € 5,000.

9. Put “blockers”, unemployed, salaried.

10. Retirees are also entering

 

The ND proposal states that “those who owe up to 3,000 euros, either to the Tax Offices or to the insurance funds (ie 4/5 of the debtors), will be able to settle their debt in 120 installments with a minimum payment of 20 euros per month. Strategic bad payers will be identified and will not be in any favorable arrangement. “

It should be noted that at this time the state has 3,933,628 Greeks. They are seized 1,143,308 and are seized 1,742,903. Indeed, enforcement measures, according to lawyer Olympia Nikolopoulou, are as follows:

 

1. Seizure for a debt of EUR 501 or more.

2. Losses, indemnities, lump sums, etc.

3. There is an unrealistic EUR 1,000 salary-pension threshold.

4. From EUR 1,000-1,500, EUR 250 is seized.

5. More than € 1,250 is seized the entire amount.

 

The Extrajudicial

The Extrajudicial

 

 

The extrajudicial has 120 installments for debts up to 125,000 euros to the EFCA and another 125,000 euros to the Tax Office. Let’s see the whole new development, which has many pitfalls and facilities. Firstly, “it concerns businesses and individuals, as well as scientists, farmers and the self-employed”, while according to the lawyer Olympia Nikolopoulou, “the debts of 2017 are now included. They are also included in the extrajudicial and debts to the Social Insurance Institutions above € 50,000 and debts incurred or established up to 31/12/2017 “.

Also, according to Mr. Pitsilis, for the EMFF for debtors with debts totaling more than 125,000 Euros, the Central Bank of Greece and the Hellenic Aid Authority provide the option “only if the borrower presents a viability assessment and a debt restructuring plan by an independent expert”.

It should be pointed out that the expert may be either a natural person who must be a member of the Economic Chamber of Greece for at least five years according to Professor of Taxation, G. Christopoulos, to have a license to practice an economical profession or an accountant of Taxation Class A, or a legal person, provided that the assessment and plan are signed by a natural person having the above qualifications. Please note that the cost of the assessment will be paid by the debtor. If the arrangement proceeds, the debtor is given proof of insurance information and the debtor’s movable or immovable measures are suspended.

If the evaluation is completed, then 85% of the debts are deducted from the debt by surcharges and overdue interest.

Another point, according to Ms. Nikolopoulou, is that “the restructuring plan must be in line with what has been defined for the out-of-court mechanism, and that the KEAO or AADE should not be in a worse financial position than the one in which they would, in the event of liquidation of the debtor’s assets, in an enforced enforcement procedure “.

 

The Regulation

 

· Up to € 3,000: No debt cancellation, minimum installment amount 50 € with 36 installments.

· Up to € 20,000: Deletion of 85% of the debts from surcharges, minimum installment of € 50 to 120 installments.

· Up to 125,000 euros: Sustainability criterion, 85% surcharge, 50 euro installment and 120 installments.

 

The Individual Settings

 

 

1. Canceling debts up to 50% of initial capital if the debt exceeds 125,000 euros.

2. Increase of regulation by extra-judicial mechanism, from 50,000 to 125,000 euros.

3. Integration into a debt settlement regime until 21 December 2017, provides for a new Ministry of Labor decision.

De facto, the KEAO will write off 85% of the interest, penalties and surcharges chargeable to the debt, and the proposed solution will have a “haircut” from the capital up to 50%.

But how does this process work? Ms. Nicolopoulou reminds us of the law, which states that “the debt cut will be constituted by specific elements, such as the viability of the company, the guarantees for securing the debt, ie real estate, cash, deposits, and finally the ability to repay installments and of “running” contributions. In addition, the number of doses will be up to 120.

 

Both the KEAO and the AAD do not Propose any Arrangements if:

 

The Individual Settings

 

 

1. The regulated debt exceeds EUR 50,000 and the total value of the debtor’s assets exceeds 20 times the debt.

2. The regulated debt exceeds EUR 200,000 and the total value of its assets exceeds 15 times the debt.

Settlement of 120 installments in Funds with extrajudicial

· The debt can be paid in up to 120 installments.

· Increases and interest rates of up to 85% are deleted.

· A sustainability report from an estimator is required.

· They are also debts of 2017.

· Receipt of insurance information is issued to the debtor.

· Suspension of forced measures on movable or immovable property of the debtor.

 

What the State can Get You

 

· House and Home, for a debt of 501 euros or more.

· Deposit up to € 1,500, € 250.

· Deposit over € 1,500, full amount.

· Allowance: 1/4 if it exceeds 1,000 euros.

· Salary: 1/5 of wages.

· One-off: one-half the one-off.

· Rents: 100% of rents.

· Compensation: 100% of the allowance.

· Sale of real estate – ΙΧ: 100% of the amount.

· Deposits: Unmatched up to € 1,250.

 

Why companies should finance their business in good times

“Financed when you’re alright,” says Dr. Nico Peters, CEO of Marchmain family. We explain why it is often cheaper to finance than to pay yourself.

Titel

The economic situation for SMEs is currently excellent – despite the weakening economy. Many companies have enough liquid funds to pay for investments out of their own assets. But is that really the best option? A plea for debt financing in good times:

 

“Buy only what you can pay.”

A wisdom that many parents and grandparents have given the children and grandchildren on their way into their own lives.

 

A very good piece of advice, but as many tips are not generally valid. Especially entrepreneurs who look good economically and want to invest in the further success of the business in this situation, should not take this wisdom too much to heart. After all, there are good reasons for holding the liquidity that has been gained in the company and instead relying on a currently very favorable debt financing.

 

 

 

You get the financing faster and easier

Faster to finance

Quite simply expressed: Who does not need money, it gets easier. In good times with good order books, solid sales and generally good liquidity, companies are also more likely to get loan approval from a financial services provider.

The financing is usually cheaper

cheap for financing

Debt capital is always cheaper than equity. Due to this so-called leverage effect, companies should always consider whether it makes economic sense to resort to borrowing (at least in part) for an investment.

Especially when the company is in a good position economically, this consideration counts twice, because banks have to offer so-called risk-certified interest rates. In other words, the better the company, the better the interest rate.

Liquidity reserves for “bad times”

Ruecklagen

Financing, if you had the funds you need for the investment yourself, you can put your own liquidity reserves aside and then use them freely in case of unforeseen situations – for example when periods of economic weakness require spending and investment. These reserves are particularly valuable when it would be more difficult to get a loan in bad times.

Free choice at the financial providers

Vielfalt 1

Without the pressure in the back, that necessarily a financing must be found, can be quiet and more prudent on the search for suitable providers go. A well-balanced comparison of providers not only improves transparency in the financing process, but also the conditions themselves. If you seek a loan under high pressure of success and with little equity as a backup, not only are the selection options usually lower, but so are the conditions with regard to the interest rate. Term, collateral and co worse. Say: While you can choose the financing partner in good times, you have to take what you get in economically tense times.

The current good situation on the financial market

Finanzmarkt

The currently favorable situation in the commercial finance market allows companies that want to borrow with a good equity ratio and sufficient collateral to make the terms very positive. If this situation changes, for example as a result of an ECB rate hike or a weakening economy, as we have already observed in various forecasts, a company loan automatically becomes more expensive – interest rates rise, more collateral is required to minimize the risk. The company’s reserves “decline” in value as more collateral has to be spent and more own funds raised to get financing that may even have worse terms.

Conclusion

Anyone who is good today should preserve this situation – and still invest in the future. Financing for companies is currently very favorable due to low base rates and the good economic situation. Especially successful companies with cash reserves should not use them for long-term, high investments, but also rely on borrowing, as long as the cost is low – and only use the reserves when this situation changes. This saves companies as a whole and at the same time gains their own ability to act and flexibility.

All reasons at a glance:

  • Currently very favorable financing conditions
  • Equity remains free (cash reserves)
  • Fast access to debt financing
  • Cheaper conditions
  • Free provider selection

ONLINE FOR CORPORATE FINANCE