Tag: entrepreneurs

Lending Club: Financing For EntrepreneursLending Club: Financing For Entrepreneurs

Every business needs capital to fund its operations. For example, fixed assets have to be purchased or inventories paid for. And this money often cannot be fully generated from the operational process, but partly comes from third parties.

Lending Club: Corporate finance occasions

There are a variety of reasons a company or private sector might need financing. The most common occasions include

Founding or start-up financing, where a new company needs capital to start up

Growth financing, where an already existing business needs money to be able to expand further, for example, to buy machines or to finance development.

Refinancing if, for example, a loan is to be replaced by another form of financing, e.g. equity.

Acquisition financing, for example, when capital is needed to buy or take over a business.

Reorganization financing to have the capital to be able to save an ailing company.

Project financing, for example, when it comes to providing capital for long-term and expensive projects in a company.

In the private sector, for example, the financing of a property through appropriate loans plays a major role.

Lending club: Internal financing of companies

Internal financing refers to all corporate financing that comes from the company itself. This is done in different ways. But what all variants have in common is that the required funds are raised yourself. There is no supply from outside by external donors.

Bank loan: You have to consider this when financing a company

It is often difficult for small businesses to get a loan from a bank. This is shown by various surveys. That is why it is now more important than ever for both the self-employed and for small companies to act professionally when applying for loans starting with the preparation of a loan interview through to the documents that are given to the banker.

The times when it was sufficient to present a good balance sheet at the house bank in order to obtain the desired financing as a self-employed person are long gone. Many entrepreneurs have already experienced that their loan applications have been rejected. Preparation is especially important. Before a loan interview, entrepreneurs should ask their bank or lending club which documents they should submit.