In
today's world of commercial finance, we live the new standard in terms
of business financing and how businesses acquire capital for growth and
expansion.
I consider myself very much an advocate for traditional loans through the use of banks and commercial finance companies due to lower cost of capital.
However, because of bilateral trade is conducted in the world today with the use of technology and market fluidity due to increased accessibility provided by the Internet, the need for capital are compatible sources came through the Fintech ( "financial technology") boom. enterprising entrepreneurs have recognized an important opportunity for most small businesses lack access to capital necessary to develop and maintain their businesses that provide jobs and resources to communities throughout the United States ..
I laughed wholeheartedly a decade if approached with the business model of most market lending sources now offering small businesses.
However, I make mockery of these entrepreneurial businesses, because thanks to the creative destruction exacerbated mainly by the great recession, fill an important need in the market now and in the foreseeable future.
I think it is safe to assume that we're not in Kansas in terms of the traditional way to provide capital to the small business market by banks and commercial finance companies.
I do not think that this model will become obsolete, but I think it will start to decrease in the scope and the loan market implies a market increasingly important because of the way the business is not today the same as there ten years.
The loans in the loan market as a viable source of business
ROI has to do with business strategies and decisions a business owner and his / her team to optimize operating profits for the benefit of the company and its stakeholders.
These methods are exacerbated when business loans are obtained because it is a requirement not only pay the interest, but also the loan principal.
The key element of this risk of depreciation for the owner of the business is the level and the amount of interest charged. traditional sources of credit were able to provide relatively cheap loans business, but there were some major drawbacks:
(1) proposed mainly blue chip clients with personal credit and business ideals and time
(2) unusually long subscription now and make great prospects.
What happens with entrepreneurs who are classified as personal credit profiles first half outlook and semi-ideal business? Most of these potential borrowers are left to find other ways to meet the challenges of business assets mainly credit cards and consumer loans which are not ideal in terms of cost, loan term, and the repayment structure.
Financial technology companies have come in the current market to provide commercial loans to healthy companies that do not correspond to traditional sources of financing "credit union". In other words, there is a flexibility in the structure of the ready product.
A drawback of the loan market is the high cost of capital due to the Peer 2 Peer model, which basically means no intermediary between investors and borrowers.
Instead of benefits that employers receive from a source of the loan market (underwriting and intervention funds and access that are flexible structures, platforms and rapid presentation applications, immediate, etc. ), the high cost capital is logical.
To minimize the default risk, business owners should evaluate the impact will increase and maintain free cash flow, both for the growth of return and operating loan.
Therefore, the business risk and the effective technical use of the loan market with the employer in which he / she must obtain a higher price than the cost of loan interest ROI, and other operating costs and capital of the company. Welcome to the new normal.
http://www.annonces.immo-reve.com/
https://www.facebook.com/immo.reve.tn
I consider myself very much an advocate for traditional loans through the use of banks and commercial finance companies due to lower cost of capital.
However, because of bilateral trade is conducted in the world today with the use of technology and market fluidity due to increased accessibility provided by the Internet, the need for capital are compatible sources came through the Fintech ( "financial technology") boom. enterprising entrepreneurs have recognized an important opportunity for most small businesses lack access to capital necessary to develop and maintain their businesses that provide jobs and resources to communities throughout the United States ..
I laughed wholeheartedly a decade if approached with the business model of most market lending sources now offering small businesses.
However, I make mockery of these entrepreneurial businesses, because thanks to the creative destruction exacerbated mainly by the great recession, fill an important need in the market now and in the foreseeable future.
I think it is safe to assume that we're not in Kansas in terms of the traditional way to provide capital to the small business market by banks and commercial finance companies.
I do not think that this model will become obsolete, but I think it will start to decrease in the scope and the loan market implies a market increasingly important because of the way the business is not today the same as there ten years.
The loans in the loan market as a viable source of business
ROI has to do with business strategies and decisions a business owner and his / her team to optimize operating profits for the benefit of the company and its stakeholders.
These methods are exacerbated when business loans are obtained because it is a requirement not only pay the interest, but also the loan principal.
The key element of this risk of depreciation for the owner of the business is the level and the amount of interest charged. traditional sources of credit were able to provide relatively cheap loans business, but there were some major drawbacks:
(1) proposed mainly blue chip clients with personal credit and business ideals and time
(2) unusually long subscription now and make great prospects.
What happens with entrepreneurs who are classified as personal credit profiles first half outlook and semi-ideal business? Most of these potential borrowers are left to find other ways to meet the challenges of business assets mainly credit cards and consumer loans which are not ideal in terms of cost, loan term, and the repayment structure.
Financial technology companies have come in the current market to provide commercial loans to healthy companies that do not correspond to traditional sources of financing "credit union". In other words, there is a flexibility in the structure of the ready product.
A drawback of the loan market is the high cost of capital due to the Peer 2 Peer model, which basically means no intermediary between investors and borrowers.
Instead of benefits that employers receive from a source of the loan market (underwriting and intervention funds and access that are flexible structures, platforms and rapid presentation applications, immediate, etc. ), the high cost capital is logical.
To minimize the default risk, business owners should evaluate the impact will increase and maintain free cash flow, both for the growth of return and operating loan.
Therefore, the business risk and the effective technical use of the loan market with the employer in which he / she must obtain a higher price than the cost of loan interest ROI, and other operating costs and capital of the company. Welcome to the new normal.
http://www.annonces.immo-reve.com/
https://www.facebook.com/immo.reve.tn
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