The role of bridge financing in large business transactions



[ad_1]

The role of bridging finance has been critical for business in recent years. A number of companies use transition funds to support their business transactions. And if the financing conditions for small businesses are varied, the big business is not the case. The exact agreement could launch the company in another dimension with a direct ticket for great success. Need some courage and a strong financial partner

What is the Relay Funding

Often the most profitable transactions have the shortest running time. Financial flexibility is therefore a condition to which a number of companies aspire. Normally, in transactions with a good profit expected, the shareholders of the company are willing to financially secure the "bridge" since the beginning of the operation to receive a financial dividend after payment. But when we talk about a serious investment, building a "bridge" requires a complex organization.

Let's talk in numbers. Company X is a manufacturer of herbs and essential oils. For the year 2017, she has produced and sold raw materials of a total value of 200 000 BGN. A new trend in the cosmetic industry is turning a new demand for butterfing into the demand for essential oil resellers – that of an immortal. At the end of the season in October, when the standard outlets are negotiated and booked for the next year, the company X receives a request from a customer to achieve 2 tons of essential oil. an immortal during the new season. The order exceeds several times the current business figure of the company, but its performance will bring a profitable profit to the company next year. There are several challenges – the money is needed for the purchase of seeds, land and machinery, the deployment of current production capacity and the hiring of labor . A significant portion of the investment should be provided immediately to the company to get the deal.

In order to commit to the contracting company, the essential oil manufacturer must guarantee large-scale ordering through a bridging finance. Major commercial transactions of Prospect Capital are available. Prospect Capital is a non-bank financial institution whose core business is granting loans from BGN 100,000 to BGN 1 million. Speed, flexibility and innovation are united in the business model. the new venture capital lending company. The advantage is the individual approach of each customer and the rapid finalization of financial decisions

"We enter the market as innovators and we affirm that we will offer our customers a stable service and of quality adapted to the personal needs of each one. It is time for business loans to move to a new, higher level, "said Miroslav Kamenov, CEO of the company. Prospect Capital relies on the speed of the initial phase of the study and approval of a business credit application with a period of up to 24 hours. hours after a first meeting with a customer. In this way, the company acquires a new trusted partner facing Prospect Capital who needs a quick bridge loan

[ad_2]
Source link