If you have reached this post, it is because at this point you have already realized that one of the main difficulties both to undertake and to keep a company afloat is the lack of resources and financial support existing by the institutions and entities banking. Therefore, it is very important to obtain financing for a company that is adequate.
Although we think that bank financing is the only alternative we have, nothing is further from reality, today there are many ways to get private financing for your company choosing the one that best fits the needs of each in a certain moment. Here we leave you a few options on how to get financing for companies.
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1. Financing of companies through the capital increase
One way to get financing for a company without the need to go to a bank is taking the decision to expand the capital stock, allowing the entry of capitalist partners who contribute money in exchange for shares or shares of the company.
Before publishing the offer of capital increase it is advisable to study and detail first what is the amount of financing you need and based on this make the offer adjusted to your financial objectives.
One way to do this is through the Equity Crowdfunding that follows the same system as crowdfunding but with the difference that investors receive shares in exchange in the company to which they lend the money, and in this way, you can get financing in the company.
2. Financing for companies through Factoring
It is one of the vehicles to obtain financing for companies more common among large companies than among SMEs. It is, therefore, a way to advance the collection of invoices in the company without having to resort to the commercial discount. What is done is an operation in which the credit receivable from invoices with customers is assigned by the company in favor, generally, of a financial entity.
The company can get financing for your company by receiving the money in advance and in exchange the bank charges a commission for the advance of the amount.
3. Financing of companies through Venture Capital
If your company is a StartUp with high potential for growth and innovation, this is one of the best options for obtaining private financing for entrepreneurs. Venture Capitals are companies controlled by the so-called general and limited partners that are responsible for funds financed by private investors.
The partners are the ones that choose where to invest the amount that is in the funds. These investments are usually made in entrepreneurship projects with a wide potential, in which they invest in exchange for participation in the said project and therefore in their future income.
4. Financing for companies through the IPO
It is a means of financing more for large companies since to carry it out you need to have a minimum capital of 1.2 million euros. If the company manages to be admitted to be listed on the stock exchange, it will be an important way to obtain financing for your company. This form of financing for companies is a way to increase capital with disbursement, becoming an ideal means to provide liquidity to former shareholders of the business if it opts for a public offer of sale.
5. Financing for my company through public grants
Before evaluating obtaining financing for a company through this option, we must bear in mind that grants or subsidies are a public incentive, not a source of financing as such since rarely a subsidy allows to fully finance the cost total of a project.
Keep in mind that there are several types of subsidies depending on the purpose that is going to give money. Some of them to get financing for a company is:
- Aid for Research and Development (R & D)
- Aid for young entrepreneurs
- Aid for self-employed
- Tax incentives or bonuses in Social Security
Many are the aids and subsidies from the different autonomous communities are made available to individuals and companies, in order to allow them to finance their business and meet their liquidity needs.
6. Financing of companies
The ICO is a public bank whose activity is to grant loans to finance investment operations and liquidity needs oriented to self-employed, companies and public or private entities that are both inside and outside of Spain. Therefore, ICO credits are usually very interesting to obtain financing for a company.
7. Financing for companies through crowdlending
By now, many of you will already be familiar with this concept. Crowdlending is a method of financing alternatives that emanates directly from crowdfunding or collective financing in which it allows any company to obtain financing by collecting a certain amount of money from private investors who collaborate in the project in exchange for monetary compensation in the form of interest paid to its investors usually on a monthly basis.