Market demand increases
When your business has not been affected by the war between Russia and Ukraine, you see market demand picking up again. As a result, your order book picks up, which also increases inventory and, later, outstanding invoices to your customers. Often, you then cannot avoid investing for this. This could be in machinery, warehouse inventory and, in extreme cases, a move to a larger location.
Current funding no longer sufficient
However, your liquidity and equity position may have deteriorated after 2 years of corona. Then, when you also have to repay any tax debts and NOW overpayments from October onwards, your current financing may no longer be sufficient. In some cases, your main banker will want to step in, but it is just as likely that they will not. This is because bankers still see many uncertainties in the market and are themselves faced with increasingly onerous regulations and higher costs. In the latter case, it is a good idea to look at alternatives to your existing financing
Stack funding
If your revenue growth involves the aforementioned investments, we recommend you take a look at a step-up financing. This can be flexible working capital financing that grows with your company's inventory and receivables positions, combined with a fixed loan with no or little collateral for planned investments. You can source these from different financiers, which means you are not dependent on one party. In doing so, it is important that you choose the best forms of financing and providers for your specific situation. Not too little financing, but also not too much financing due to costs. That's what it's all about.
Xolv supports refinancing processes
This stacking, as we call it, requires extensive knowledge of the right financing structure, financing conditions and the many providers on the market. . Xolv Finance's advisers have years of experience in refinancing processes and would be happy to invite you for a no-obligation consultation.
