Monthly Archives: November 2019

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Financing of start-ups

This applies not least to those who invest a large part of their private capital, and not least to those who start an individual company instead of a public limited company.

Try to finance your business or organization in the best possible way. Starting a company is not something you should underestimate if you take it seriously. First, very basic research should be done. Questions one can ask are, for example. if you really need to borrow money? If you choose to borrow money, it can be good to compare business loans. This can be done on websites like this, by comparing eg. interest rates or other terms. Please read about which loans have terms that are right for you.

You have to budget

You have to budget

Look at what needs are and what is realistic. Many times you also have to have a buffer as some things can be much more expensive than you expected. This applies not least to construction contracts, metal industries and similar businesses. For those who do not want to become small businesses, but make a serious investment, reliable employees and broad expertise from eg. economists and accountants.

The company’s owners usually take the greatest risk in corporate finance, both financially and legally. Large start-up capital and with the right abilities among the employees contribute to long-term survival. It reduces the likelihood of having to carry out risky new issues or cause other problems. Above all, it takes time to build a profitable business from scratch. Many times a start-up can also be financed in several ways.

Ordinary corporate financing

Ordinary corporate financing

  • Own start capita
  • Corporate loans from major banks
  • Corporate loans from smaller credit institutions
  • advance payments
  • Operating loans
  • Credit from suppliers
  • Riskkaptial

Own starting capital

Usually there are no grants for individual companies, limited companies or the like. There are exceptional cases where Försäkringskassan enters if, for example, These are companies that are started by people with disabilities, immigrants or low-income earners who need support at start-up. This is called starting your own contribution, and can be applied for at the Employment Service.

Most people who want to start a business do not, at least not get the whole start of business financed by government or other organizations. Those who have their own start-up capital usually get this through saved assets such as salary, inheritance or securities. It can also be donations or at least a smaller percentage of grants.

Venture capital

Lucrative companies with good growth potential can be financed with the help of venture capital companies and business angels. This usually also means that the venture capital company becomes part owner of the company. This can accelerate growth and make the company grow faster. This is important, not least for new markets and expansive markets. Venture capital companies also often want companies to have the ability to grow in an international market.

Credits and loans

Credits and loans

It is very common, especially for ordinary small business owners to apply for a loan from a major bank or a credit institution. This applies both to those who want to start a new business or to existing business owners such as want to expand their restuarang or lease a car.

Ordinary bank loans may be suitable for large material investments. The bank places high demands on borrowers, especially with large corporate loans. Security and potential creditors are also required to be able to return their money. Large banks, as well as smaller credit institutions and loan intermediaries, offer different types of loans for different investment needs and for different types of company owners.

The bank also usually assesses business plan and budget, which should be considered profitable. This can also play a role, as different requirements for security can be placed on different business models. The security may, for example, affect the company’s stock or other property.

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Alternative forms of financing – factoring | Financial loan calculator for free loan comparison

If a company needs money in the short term, factoring can be a suitable financial instrument.
In addition to immediate liquidity, factoring can also provide your company with protection against default (security).

Let factoring companies pre-finance invoices

Let factoring companies pre-finance invoices

Factoring gives you capital for the pre-financing of new customer orders.
In factoring, open receivables (invoices) are sold to factoring companies immediately after accounting. There is no long waiting time for incoming payments. The outstanding amount will be paid out immediately. The biller enjoys many advantages when using factoring. The equity ratio is increased and the credit rating improves (better rating with the house bank). A lengthy credit check of the borrower is not necessary because the creditworthiness of the customer who receives the claim is decisive. If a company has a good credit rating, the chance of cheap loans increases. To get the optimal solution, there are different types of factoring.
Which factoring variant is the right one depends on your needs (possible application).

The following points are important for the right factoring solution:

  • What is your liquidity requirement?
  • What is the payment behavior of your customers?
  • Who should take over the dunning and bad debt protection (del credere)?
  • Are the debtors based abroad (export factoring)?
  • Should the purchase of receivables take place in a concealed manner (the customer is not informed of the fact that the factor service is activated)?

Factoring is used by medium-sized companies in many industries such as production, services, trade, handicrafts.

The different types of factoring

The main factoring options are; Real-fake factoring, full service factoring, open and silent factoring and in-house factoring. Factoring companies specialize in the various types of factoring financing.

In real factoring, the factoring service provider takes over the financing, the risk of bad debts and the service provider function. Protection against bad debts does not apply to fake factoring for the factoring customer. For example, the factoring company Finiata provides “fake factoring”. With this factoring form, your customers learn nothing about invoice sales. The full service factoring includes default protection, as well as the collection and dunning of overdue receivables. If you choose open factoring, the biller (customer) is informed of the assignment of claims (sale of the invoice) to the factor. In the case of silent factoring, the assignment of claims is not communicated to the factor. In-house factoring is used by large companies that operate the dunning process themselves. The company receives more favorable conditions from the factor company.

Factoring benefits

Factoring benefits

Many companies use factoring because of the fast processing as uncomplicated additional financing and as an instrument of financial planning. Factoring also helps to improve the company’s creditworthiness. To find the right factoring provider for your company, a factoring provider comparison is recommended. Furthermore, your administration and accounting will be relieved. Factoring is an effective financing instrument when it comes to purchasing finance, commercial loans and creating quick liquidity and thus competitiveness. Short and quick decision-making processes shorten the waiting time for payment of the claims.

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Is it possible to borrow money for a car despite payment remarks?

Cars cost a lot of money, which means that you usually have to borrow in order to buy a new one. If there are payment remarks, this can be a major obstacle for you who want to borrow money. But fortunately, it doesn’t have to be impossible to borrow money, although it will probably be tough.

For example, if you look at the classic big banks, everyone says that they do not accept applications from people who have payment notes. But that said, there are actually little opportunities to borrow from them anyway. But in order for there to be any chance of doing so, it will be required that you repay the debts to Kronofogden and then otherwise have a good finances. You also have to meet them in person and then explain your situation and then it is required that you can convince them that you have a good finances even if there is a payment note.

Then it is important to remember that a lender never has any obligations to lend money to an applicant, but it is entirely up to them who decides who can borrow. This means that even if in your eyes you have sufficient finances to borrow even if there are payment notes, then the bank may not like it and then they will not accept an application.

Lenders addressing persons with remarks

Lenders addressing persons with remarks

There are lenders who have chosen to focus on lending money to people who have payment complaints. These can very possibly help you in case you want to take out a car loan but have payment notes.

In order to borrow money, it is then usually required that you repay your debt and that you then pass their credit check. Furthermore, you may be required to, for example, have something other than a car to provide as collateral for the loan as a home. Or that you have someone who is likely to enter as a guarantor for a loan. You may also be prepared to pay a slightly higher interest rate for a loan from these lenders. The fact that the interest rate is higher has to do with the fact that it is actually a greater risk for a lender to lend money to a person who has not previously repaid a loan as planned.

Hard but not impossible

Hard but not impossible

All in all, it can be said that it is definitely harder to borrow for a car if you have payment notes but that is not impossible. But if it is prepared to fight and ensures that the economy is in good shape, it should not be impossible in any way. If you still have debts and problems to get the economy together every month, you should not expect to get a car loan and it is then also doubtful if you should try to borrow.