Are you looking for alternative finance and crowdfunding as a solution for your business projects? Would you like to know how to finance your business without banks?
In this article we are going to explain the four key elements needed to access alternative finance and crowdfunding.
Perhaps you are looking for more insight into alternative finance because you have projects to develop and you’ve noticed how many potential providers promise great results or how they make this powerful tool seem extremely easy.
We recommend that you be careful when it comes to ‘do it yourself’ methods, as you risk wasting a lot of time, money and energy while not finding the best procedure for you, or you may run into people who just want to speculate on your lack of information leaving you with nothing concrete.
Before seeing what the mentioned factors are, let’s understand what alternative finance and crowdfunding are.
What are alternative finance and crowdfunding all about?
When we talk about alternative finance we mean all alternative finance to the banking world.
We are traditionally accustomed to think that the only money supplier is the bank, but there are different options that in America are well known and widespread, whereas in Europe and especially in Italy, are not very widespread because there is a lack of specific knowledge.
Crowdfunding comes from the union of the English words ‘crowd’ and ‘funding’ and indicates the technique of finding funds through people. They choose to invest in projects because that they find interesting and profitable.
There are various types of crowdfunding, but the only form Italy has ruled on is the Equity Model.
What does it consist of?
Basically, it is a tool that allows a large number of people to finance the raising of capital for private companies, becoming, in exchange, their shareholders. The investment takes place online on dedicated and authorized websites where one can explore diversified opportunities.
To learn more about crowdfunding click here.
Why open up to alternative finance channels?
Italy has always relied on a bank-centric system (the bank at the heart of businesses) and when it comes to credit this is the first institution that comes to mind.
In 2019 such an outlook is no longer possible.
Why not?
Because we are experiencing a revolution in which the market is changing completely and banks are no longer a safe haven.
This is demonstrated by the recent news about the certain or potential default that is affecting many of them.
There are, for example, many articles about Deutsche Bank and the heavy crisis it is experiencing (click here).
Then, it becomes vital to know about and to seek alternative financial solutions.
If you think about it, before 2008, banks granted loans very ‘easily’ and with few guarantees: this has lead the return of money from steady to completely uncertain. In such a deteriorated system the Subprime bubble burst.
The precise date of no return is September 15th, 2008.
The investment bank Lehman Brothers declared bankruptcy and within just one year a series of negative consequences destroyed the whole system.
Companies and families were heavily affected by the consequences as banks found themselves in great difficulty (for example MPS) and began to make requests for sudden returns or to speculate on their real equity value like Banca Etruria, Veneto Banca, and Popolare di Vicenza did.
New regulations that have caused the credit crunch
In light of this crisis, several regulations were established in Basel in November 2009 to avoid further banking disasters, including IFRS 9 (International Financial Reporting Standard) with the new accounting framework that became mandatory for all banks on 1 January 2018.
These rules enact that if you apply for financing for your business project, the bank must assess its current and long-term (next six months) status.
This way they certainly safeguard their institutional well-being but, on the other hand, cause trouble to businesses by not granting funding to those who are not able to provide a long-term guarantee on their solvency.
To go into the subject in more detail, I suggest you read this previous article.
How to access alternative finance
To access alternative finance channels you need a tool that makes it agile and safe, you need a concrete blueprint: it is provided by C&G Capital’s Kredway Method.
How does it work?
The Kredway Method involves a preliminary check-up that shows you the financial status of your company. Subsequently, to determine your personalized action plan, a Kredway analysis will be carried out, in which the strengths and weaknesses of your company will be highlighted in order to give you the adequate solution, suitable for the type of situation your company is in.
It ensures the proper correlation between the tool and the procedure, allowing you access both in the banking and in the non-banking world (currently in strong growth). It is a certified method because it guarantees you a solution.
What are the elements that grant access to alternative finance credit in a agile and safe way?
These 4 factors are:
Fast cash
Minibond
Planelìte
Tutor guided path
Fast Cash
C&G Capital has designed an immediate mechanism through which you can receive extra-banking credit: Fast Cash.
Let’s understand specifically what this is all about.
The Fast Cash product is a financial planning tool that reflects positively on the balance sheet structure of your company because it has precise criteria for accessing it.
These are permanent disposals through funds operating in Italy, Germany, UK and USA.
The advantages that you can draw from Fast Cash are many: the credit does not go into the central risk center and there is a qualification of the balance sheet. All financial charges are eliminated and you can get the liquidity you need within 72 hours. In addition, the liquidation has is of the 90% (including VAT) with remaining 10% when the settlement will be completed. You will not be required to provide guarantees, there is a tax deductibility of the cost of the sale and a authentic factoring without recourse.
Thanks to Fast cash, your company thrive substantially better.
With it you can get money in the immediate future, but in order to have access to alternative finance channels in the long term it is above all necessary for your company to gain visibility in the financial market.
You need to differ from other businesses in the territory, in this way your efforts will not be in vain.
Minibond
Mini-bonds are obligations issued by private companies (as you can do with yours) for specific enterprise development projects that serve to increase liquidity and grow the company. They have proved to be a very easy and malleable alternative financing tool: in 2018 the minibond issuing industry has had a constant and continuous advancement.
C&G Capital, with the Kredway Method, is able to support you step by step with the issuing of minibonds, as it helps you to get the proper highlight with potential investors.
To understand more click here.
The purpose of the Kredway Method is not only to provide you with a service, but to design a model intended to reach your goal and stand out from your competitors.
Why are we stressing this point?
Because an investor before taking any step, before investing his money on a specific project, wants to understand what kind of return a particular expenditure can give him. That’s why a clear and effective Business Model is necessary and of fundamental importance and that’s why we have developed Planelìte.
Plenelìte
If you need a fast tool to analyze your business and get the visibility in the financial market, you need Planelìte.
It is a method developed by C&G Capital to intuitively define and organize a business idea. The matrix grants an immediate explanation to investors, who can readily grasp what the project is all about and how they are going to benefit.
Planelìte is indispensable because its structure is devised as a corrective agent that, in case of market changes and/or internal/external factors, can realign with investors’ expectations and the profitability of your company.
Data report that 80% of enterprises in Italy works day by day without a defined business model. This means that most entrepreneurs do not make their company distinguishable, and, consequently, are not making it attractive in the financial market.
What about you? Do you know what characterizes your company?
What differentiates it from others?
These are legitimate questions and yet difficult for many to answer.
Planelìte is the method that C&G Capital has designed to set your business project in motion and go along with it in the long term.
To learn more, I suggest you read this article.
It is necessary, then, for you and your company to follow a guided path through the help of a tutor, but of what kind?
Tutor guided path
Alternative non-banking finance is certainly not easy to put into practice in a ‘do it yourself’ way, as it can immeasurably slow down your growth.
C&G Capital, through the Kredway Method provide you with a precise guided path and a tutor called Kredit Finder, in order to reach your entrepreneurial dream.
Who’s the Kredit Finder?
The Kredit Finder is a trained and prepared figure who will follow you every single step.
He will always be at your side to show you the necessary activities and respond to your specific needs.
The management of your project will be followed by a single interlocutor with a single business objective and a defined and stabilized project. The administration will be delegated to allow a hightened prevention of unforeseen events, the costs will be determined and with the possibility of a full refund.
Through this article you have understood that Fast cash, Minibond, Planelìte and a trained tutor are the 4 keys to access alternative finance and crowdfunfing.
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