6 financing levers
- Non-dilutive financing to accelerate your sustainable growth
- Simple graphics for understanding complex financial concepts
In an ever-changing economic environment, mastering the levers of financing becomes a major strategic challenge to ensure your company's growth. Choosing the right financing solutions for your specific needs can make all the difference between a company that stagnates and one that successfully expands. Your company needs to be able to access the capital it needs, while optimizing its financial structure and preserving its equity. Discover with us the 6 essential levers for optimizing your company's financing and supporting its sustainable development.
Traditional bank financing remains one of the most popular solutions for companies seeking medium-term funds. This approach provides access to substantial loans while preserving your share capital, but it also entails constraints that need to be analyzed as part of your overall financing plan.
The advantages and disadvantages of bank loans need to be carefully analyzed, as this type of financing can have a considerable impact on your company's cash flow. Although banks offer competitive interest rates and extended repayment periods, the application process can be tedious and requires meeting strict criteria.
The impact on your financial structure includes:- Interest rates that are often more advantageous for longer-term loans- Improved profitability thanks to predictable maturities- The need for solid guarantees that can impact your liabilities- The requirement for a detailed business plan and full financial documentation.
However, your banker will often require personal guarantees and a thorough analysis of your working capital requirements. The approval process can take several months, which can be an obstacle if you urgently need short-term financing.
ℹ️ For example, an industrial SME in our portfolio recently obtained a €200K, 5-year bank loan to finance its expansion needs. However, the process required 4 months of negotiation and the mobilization of part of its equity capital as collateral, demonstrating the complexity of this traditional approach.
Factoring has evolved considerably in recent years. Modern factoring solutions now enable companies to better manage their cash flow, while optimizing their collection processes and receivables turnover. Unlike traditional factoring, which is often perceived as rigid and intrusive, new-generation factoring offers greater flexibility to finance your operational needs.
This model enables companies to turn receivables into cash without waiting for the usual payment terms, freeing up capital quickly to invest in growth. The major advantage lies in the transparency of these solutions, where the company retains full control of its customer relationships while optimizing its working capital requirements.
This modern approach allows you to:- Choose the invoices to be financed according to your cash flow needs- Adapt your financing needs to your business- Maintain good relations with your customers- Significantly reduce your outstanding receivables- Optimize the management of your current account
Modern discounting also offers an interesting alternative for companies seeking to accelerate their cash collections without resorting to traditional borrowing.
ℹ️ For example, an e-tailer using Karmen Factor was able to reduce its collection time from 60 to just 2 days. This enabled him to strengthen his cash position and continue to invest in his development, without having to worry about the financial pressures associated with his operating cycle.
The Karmen loan is a modern, efficient alternative to fund-raising. Alternatives to fundraising, such as those offered by Karmen, are ideal for companies generating regular revenues, particularly in SaaS or e-commerce. Unlike traditional loans, the Karmen loan offers flexible repayment terms, tailored to your company's actual financial performance. This enables you to preserve your capital while supporting stable, sustainable growth.
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With its simplicity and adaptability, the Karmen loan is proving a popular solution for companies looking to finance their growth without the constraints associated with traditional financing methods.
Short-term financing plays a key role for companies that need cash quickly to seize growth opportunities. The best short-term financing solutions offer the flexibility to meet immediate needs while preserving the company's financial health.
With loans ranging from €30K to €5M, we have developed Karmen Loan to offer businesses the possibility of fast, flexible financing, with terms from 1 to 24 months. This type of financing is ideal for one-off cash needs, enabling your company to seize growth opportunities without burdening its long-term finances.
Key benefits of this solution include :
Public financing offers companies access to financial resources while retaining their entire capital. These grants cover a wide range of areas, including innovation, ecological transition and job creation. However, accessing them can be complex, and requires a clear understanding of eligibility criteria.
Available aids include :
Maximizing the impact of public fundingActive monitoring and proactive management of applications can help you maximize the use of this funding, which is often essential for the development of specific projects.Building an effective financing strategyTherole of financing in growth is paramount in guaranteeing your company's long-term success. An effective financing strategy is based on intelligent management of the various levers at your disposal, taking into account your company's needs and the dynamics of your sector.Keys to a successful financing strategy
At Karmen, we have developed tailor-made solutions that combine flexibility, speed and simplicity, adapted to the modern challenges of growing businesses. Our expertise enables us to understand the specific needs of each company and to propose financing solutions that are perfectly adapted to each situation.Whether to finance growth, optimize working capital, or seize opportunities, we put our expertise and our network at your service to help you develop your business in the best possible way.Mastering the different levers of financing is now an essential strategic issue to ensure the sustainability and growth of your company. To identify the solutions best suited to your situation and benefit from expert support, please do not hesitate to contact our specialists. Together, we'll build the best financing strategy to support your company's growth.
