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Identify financing opportunities independent of banks at an early stage and implement them independently.


This is how companies raise capital for a solid financing mix today!

Small and medium-sized enterprises and start-ups often have good ideas, motivated employees and the employees will do excellent work. They account for 30% of sales and 50% of all jobs in this country and thus make a significant contribution to the German economy and gross domestic product. When these companies grow and want to implement lucrative projects, equity quickly becomes scared, making solid corporate financing necessary.
As a rule, companies are supported by loans from their trusted principal bank in conjunction with government development financing programs. However, as a result of the Basel III reform, banks are already obligated to require around 30% of the financing amount as equity capital. Under the Basel IV reform extensions planned for 2022, banks will be required to impose even higher capital requirements on the companies they finance. This means that companies that are still financed by their banks today will have to contribute even more equity capital for their financing projects in the future. Very few companies are that wealthy, especially after crises in which a lot of savings had to be used up.

So, what alternative financing options do start-ups and medium-sized companies have if the necessary equity capital is lacking?
There are three types of financing to organize sufficient funds and thus enough capital for the entrepreneurial projects. These include debt capital, equity capital, and mezzanine capital. Debt capital is provided to you by other companies or corporations for operational purposes. Unlike equity capital, this financial resource is subject to repayment obligations and is always limited in time. In addition, the capital providers have residual claims, which gives you influence over events within the company. However, debt capital can also originate from internal financing or provisions.
Equity capital corresponds to the net assets. In the end, it represents the money that you contribute to your company from your own pocket. It has a positive effect on the balance sheet difference between assets and liabilities. Moreover, it is available to you for an unlimited period and is not subject to any repayment obligation. Due to its legal and economic structure, mezzanine capital generally represents a hybrid form of equity and debt capital. Unlike conventional debt capital, mezzanine capital is presented as equity in the balance sheet. In addition, the investors have no decision-making or voting rights.
A mixture of equity, debt, and mezzanine capital helps companies to grow and implement new projects for which a financial basis must be available.

What role does crowd investing play here?
How can crowd investing help? Crowd financing can be used flexibly for companies and industries. Whether for traditional retail around the corner, craft businesses, or a real estate developer – they can all use the crowd to realize a business project or bridge financing. With a network of investors and a willingness to promote one’s venture, crowd investing can be a quick alternative or complement to a bank loan.
The advantage of crowd investing is that the sums invested by investors remain high and many projects have already been successfully supported as a result. Investors are looking for profitable investment prospects in times of a now apparently longer-lasting low-interest phase, which is given via crowd investing.

Contact us and receive a free Potential analysis!

Advantages of SMARTeFunding:

    Set up your financing platform in your branding

    Finance your business projects independent of banks

    Offer innovative investments with the help of tokenization

    Start your issuance faster and cheaper

    Reduce your acquisition, sales and administration costs

    Simplify your sales workflow

    Strengthen your customer information management

    Focus on your core business

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