Sustained business success means obtaining optimum financing for each undertaking and business stage. Liquidity planning creates an overview of available and planned liquidity. Excess cash can be used to repay loans or invested, and financing shortfalls can be covered through loans or leasing.
The business plan is crucial to obtaining financing. It contains key figures and is a means of communicating with your business partners, investors and the bank. The Business Navigator is a professional instrument which you can use for your business plan.
It is not only applicants who want their loan applications processed quickly and smoothly; banks do, too. Incomplete documentation can cause aggravation and delays. You can find a helpful checklist at the following link.
Risk costs can be mitigated or reduced, for example by offering valuable securities, e.g. pledging securities, life insurance benefits or property.
The more information your bank receives, the better it can assess the risks associated with a loan. This makes the bank's work easier and may even lead to better conditions.
Banks give SMEs the chance to improve their credit rating by reviewing it every year. The following documents make this a relatively straightforward process: business plans with detailed figures, presentations of ongoing projects, detailed information on the current and future development of the company and its strategic orientation.
What types of financing are there?
Working capital funding ensures the liquidity of your company and finances all types of goods required for production or trading. This mainly includes all types of short and mid-term external financing instruments, such as an overdraft facility.
Investment capital funding is longer-term financing, e.g. for machines, plots of land or product development.
Real estate financing provides long-term financing for business premises. The products offered are the same as for private clients.
Leasing differs from purchasing in that the economic good (usually industrial plant and investment items, e.g. machines, technical facilities, vehicles) is purchased from the leasing company and made available to the lessee to use as they wish for a defined period (without any actual transfer of ownership). The advantage of this mid to long-term financing method for investments is that it does not tie up as much liquidity since the lessee only needs to make a monthly payment.
Factoring is a way of financing that allows companies to gain liquidity over the short term. Factoring is when short-term (nominal) trade receivables are sold to a factoring company (factor). The factor charges a factoring fee for this service, consisting of the interest for the liquidity provided and the risk of default.
For specific offers and conditions, please contact your customer consultant.
The rating is a type of recommendation for the creditworthiness (solvency) of the debtor. Your creditworthiness is reviewed every time you apply for a loan and at regular intervals afterwards. The better your credit rating is, the lower the risk for the bank. And the lower the risk, the lower the interest charged. The bank includes financial and non-financial factors when assigning a rating.
Key figures on:
Qualitative assessment of:
You can improve your rating by working on these criteria (see tip 6).
The business plan is an important factor for the bank when considering a loan application. It needs therefore to be very well prepared and as complete as possible. The business plan is primarily a management instrument for the person running the business. It should therefore preferably be drawn up by that person, possibly with assistance from a fiduciary agent.
This checklist you need when applying for a loan.
Swiss export risk insurance: www.serv-ch.com
Promoting Swiss exports: www.s-ge.com
BG Mitte, Bürgschaftsgenossenschaft für KMU (for SMEs) www.bgm-ccc.ch
BG Ost, Bürgschaftsgenossenschaft für KMU (BGOST) www.bgost.ch
Coopérative romande de cautionnement - PME (CRC-PME) (for French-speaking Switzerland) www.crcpme.ch
Bürgschaftsgenossenschaft von Frauen für Frauen (for women) www.saffa.ch
The Swiss Private Equity & Corporate Finance Association (SECA) www.seca.ch
Foundation for technological innovation www.sti-stiftung.ch
Swiss Venture Club www.swiss-venture-club.ch
»venture» 2012 www.venture.ch