External Financing Needed, But Denied – Despair or Resolve?

In our daily work, dealing with the urgent needs of entrepreneurs, managing financial accounting, and preparing annual reports, we have observed that especially in situations where a company needs to attract additional external financing—for example, to receive Altum funding to overcome the Covid-19 pandemic crisis, or to obtain a bank loan, increase an existing credit line, or even secure leasing for new production equipment or vehicle acquisition—it is often denied, primarily, but not exclusively, for the following reasons:

• Problems with equity sufficiency;
• Problems with obtaining sufficient funding;
• Problems with ensuring liquidity;
• Problems arising from the fact that the company has profit, but lacks free cash flow to provide the co-financing required by the lender;
• Opportunities to receive various EU fund and state-supported financing programs are available, but access is denied due to various obstacles;
• Management wishes to make certain investments for the acquisition of new fixed assets but cannot make a decision because they do not understand the payback period;
• There is a continuous lack of funds to cover creditor debts;
• The annual report was prepared and submitted without considering the aforementioned and other issues;

The reasons can vary and are specific to each situation. We are a team of qualified specialists ready to delve into any financial reporting situation to find opportunities for improvement, sometimes simply by preparing reports correctly, transparently, and understandably, so that our clients can use these reports to secure the external financing needed for their business operations and development.