Corporate Finance

Liquidity bottlenecks in these turbulent times belong to the agenda the obvious idea is to go to the Bank and take out a loan. The oldest and still the most important method of funding is the money on time. You will feel at the same time the Bank appointment as supplicant, rather than contractors. Just because of the financial crisis this situation coming to a head dramatically, because the banks themselves lack funds and they can consequently fewer loans. The interest the Bank should nevertheless grant a loan, will be regularly more expensive, as it was previously used. Maybe an IPO could help but. On the one hand, the company could independently offer its shares in the capital market. On the other hand, you could to an SPV (special purpose vehicle), also shares a companies sell with special purpose on the stock exchange and actually financing company as a loan pay off the raised capital which can be.

Unfortunately both versions cost very much, so that such an IPO rather for large SMEs into consideration comes. Also, whatever the loss of control threatens with an IPO in first variant. Finally, it is due to the financial crisis for businesses even more difficult their shares on the stock exchange to sell it and to achieve such a good price. However, equity may be a horribly. This equity is not on the stock exchange is included in contrast to the IPO.

Rather is it acquired by private equity firms (private-equity firms). Clear disadvantage of this form of financing is that the subsidiaries claim rights and yields extremely high for the time of their participation. Jeff Bewkes oftentimes addresses this issue. Factoring could possibly be a solution. Factoring is the sale of receivables to third parties. For this third party will pay these bills, minus a Commission the company immediately. Clear advantage is that company can convert open items in liquidity.