When you need to resort to a source of financing, there are many possibilities within the financial market. The most common is to turn to traditional banks, but in many cases this is not possible due to response times, or because they directly deny access to credit. In this scenario, the ideal alternative for the company is to turn to private capital.
When a company has to choose a source of financing, private equity has many benefits over other sources of financing, and some of these benefits are very important for companies. The main advantages of private financing for companies are:
- In many occasions it is the only option for a company to obtain financing.
- It does not matter the incidences in the lists of debts and delinquencies, such as Rai or ASNEF. Nor does it matter that the company has a bank pool or debt ratio that is too high.
- It is the fastest source of financing to obtain a loan. The processing of documents and the financing process is the fastest, most agile and flexible option on the market. This advantage is of vital importance on some occasions, for example to paralyze an auction process or to pay a debt with a maturity date.
- They offer greater flexibility in the repayment of the loan. It is possible to negotiate how the installments will be paid, their periodicity, and even the necessary grace periods.
- It is not necessary to change bank; it is the private capital company that directly facilitates the loan in the necessary bank account.
As you can see, private equity for companies has advantages that make it a unique and necessary source of financing in the market. In addition, it has features that other sources of financing cannot offer.