When it comes to setting up a business, if there is no firm financing, it can become a virtually impossible task. This situation has been complicated during the last years and now it is more difficult to be able to get the desired loan for a company or a loan for entrepreneurs.
Traditional bank financing has declined exponentially since the onset of the crisis and today has a good and competent business idea is not enough for banks to contribute their capital. Banking provided up to 90% of the financing to companies, channeling the money of the savers towards them and managing the profitability in the best way.
The gap left by bank credit has been complemented by transparent alternatives that help to lend to companies that have a great productive importance in society and that maximize the savings of the clients.
The best financing for companies
Fortunately, there are still some aid for SMEs and also some financing alternatives that appear day by day with the intention of making up for deficiencies in bank loans. For this purpose, for example, Direct Lending, whose literal translation of English means “direct loans”, focuses on small and medium-sized enterprises.
Main sources of financing for companies
- Direct lending
- Help for SMEs
- Reciprocal guarantee societies
- Bussiness Angels
In the case of crowdlending, investors are the ones who decide where to invest and the interest rate they wish to receive through a completely transparent auction. These new ways of investing attract sectors from all walks of life.
We also find other types of financing for companies such as crowfunding , reciprocal guarantee societies or Business Angels. All of them are focused on being very practical alternatives to get the necessary capital and are known as shadow banking systems.