Purchase financing — an innovative way out of the credit crunch

There is hardly a topic that moves German entrepreneurs as much as the "right" corporate financing. However, in view of a more restrictive lending policy on the part of banks and rating requirements that have been adjusted as a result of the crisis, it is not easy for many small and medium-sized companies to realize an optimal financing mix. But despite the tighter parameters these days, new ways are being developed to get around the prevailing credit crunch. The financing option "Finetrading" represents a striking opportunity, which can be used to structure the financing of working capital.

Mittelstand is unique in the world in terms of the relevance and market presence it enjoys in Germany. Even during the post-war period, this corporate class contributed significantly to the success of the economic miracle. In this context, the bank-dependent financing behavior of SMEs has historically grown. Until now, the financing burden has been covered in particular by a closely interwoven and long-term relationship with the principal bank. For some time now, however, German SMEs have been plagued by financing worries. The traditional financing route via bank loans has become rockier in recent years, as the banking industry has had to respond to high cost pressures and adjust interest rates in line with company-specific risk. In the process, the conditions for borrowers with "weaker credit ratings" have deteriorated or additional loans have even been discontinued altogether.

More than ever, "Cash is King" applies

The main losers in this process are the entrepreneurs, who are confronted with significantly higher financing costs and have to fear for their long-term financing capability. But despite this background, many decision-makers still attach too little importance to alternatives to bank loans. The opportunities for a more balanced financing structure therefore often remain untapped. Those who react to this at an early stage, free themselves from dependencies and understand how to use alternative forms of financing flexibly are well advised.