Early Financial Planning Has Many Advantages

 

 

Anyone who proves far-sighted as an entrepreneur and plans to invest in the company over the long term gains greater room for maneuver. The consulting firm Deloitte, for example, recommends a lead time of at least one year on the due date in a study on SME finance. The more time available, the better the financing can be planned and comparison offers can be obtained.

early planning of investments

Sufficient lead time in the financial planning of investments makes it easier for entrepreneurs to plan the entire project. Not only is there time for a detailed comparison of suppliers when it comes to financing terms, but it also provides the opportunity to react to all developments in good time, even in the face of unforeseen circumstances. Because financial difficulties, in the worst case even a bankruptcy, threaten companies that do not deal in time with the planning of necessary financing. At least one year ahead of the due date, planning should begin.

Expand scope for action

Whenever possible, entrepreneurs should start planning even earlier. The more time is available, the greater the room for maneuver if a negotiation fails or a potential partner steps out of the talks. Then there is enough room to continue the negotiations elsewhere and with other partners – or to arrange a bridging loan. And the company does not have to resort to an emergency after each rescue straw, which is then handed to him.

 

A tip: A comparison of different financing providers reduces dependencies on individual financial service providers and at the same time provides for better terms.

 

Especially for complex projects with in-depth financing plans, a vendor comparison should be mandatory for every business owner to obtain the best terms in terms of interest rate, maturity, collateral and equity. But many shy away from the effort of a sufficient comparison, although independent online platforms are already a sensible and cost-saving alternative for this:

Get and compare financing offers now

Internal health check

Another aspect of timely corporate finance is often overlooked and underestimated by many experienced entrepreneurs. Firms that think early on about which investments they want to finance, how and with whom, and above all why, undergo a small internal health check. The analysis for financing partners can help to identify and correct weaknesses such as the company rating in good time.

Stay up to date on financing issues and new financing tools. With the Marchmain family newsletter we regularly provide you with interesting expert contributions and information about financing issues for medium-sized companies.

 

 

 


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