According to latest reports by Fortune, more than 100,000 business that have temporarily shut down
 due to pandemic are now out funds. They are not able to continue their businesses. It’s
 because their finance cycle was completely disturbed and they didn’t have enough funds of
 finance when they needed the most. Here comes the concept of liquidity which is helping
 businesses to grow with more pace and proportion. Liquidity is the term that explains how easily or quickly you can get
 the cash in your hand. In simpler words liquidity is the process of getting the money for your
 business whenever you need it. It could be saviour  of your business and can help you in
 emergency. For example, the business is now launched, orders are piling up and the working
 capital requirement (WCR) is increasing. Development projects are emerging and the lack of
 equity is felt. New intangible resources must be acquired. Investing, recruiting, soliciting new
 partners, moving towards international development. These are new challenges to which
 business owners of growing companies must respond. Faced with each problem, there are
 many financial solutions that it is important to know: short-term operating credits, financing the operating cycle of the company and facing debts, medium and long-term bank loans for
 the financing of investments, the intervention of one or more venture capitalists when
 strengthening the company's equity capital is required. are financing formulas adapted to the cash flow needs of the company in its
 daily activity. Very often young companies are faced with the problem of financing their
 working capital requirement (WCR). Often neglected by creators in the start-up phase, working
 capital increases during the first years of activity. An important order to honor, payment terms
 that increase and the cash flow looks down. Specific solutions can therefore be negotiated with
 the bank to avoid dangerous situations. Operating loans Second method of getting funds is Medium and long-term
 bank loans are commonly used to finance its development, particularly through new
 acquisitions. This type of bank financing and leasing includes bank loan, growth loan, credit
 application with the Chartered Accountants network, furniture leasing, financial leasing and
 real estate leasing. bank financing and leasing system. The most effective method to get funded is adapting resources. If you want to
 make investments, under certain conditions you can get a loan for your business from a growth
 fund. Companies that want to grow need to have a solid foundation. Therefore, first devoting oneself to
 the development is essential for the successful implementation of growth plans. If essential
 steps of the development phase are obscured by excessive growth euphoria, there is a risk of a
 crash landing. growth funding It is therefore important that, in the first step, companies are clear about which
 financing options are actually suitable for growth plans - and which are not. The growth
 financing is also available to deal with the economic consequences of the COVID-19 crisis. Growth
 financing supports you as a commercial company or as a small company in financing
 investments if you have been active in the market and have a renowned brand. You can get the loan for: Expansions and relocations Rationalization and modernization The conversion of the production process or the product range Acquiring businesses as well Resources and warehouse There are two main types of growth funding - growth funding with equity and growth funding with debt capital. 1. Growth Funding with Equity Well-capitalized companies may well be able to tackle an expansion or growth phase with
 equity. Around two thirds of all Swiss SMEs today finance their growth with equity. A distinction
 is made between the following three common variants: Self-financing The company retains its profits for years to invest in a growth project. And the company
 remains independent. Additional equity or loan Capital is raised in the private environment and earns attractive interest. The company
 retains its profits for years to invest in a growth project. And the company remains
 independent. Investors Business angels, venture capital or crowdfunding are the most common methods of
 getting investor money today. The investor can be a strategic partner who can
 accelerate growth with his expertise and a large network. 2. Growth Funding with Debt Capital Borrowing capital from the bank can also be useful for financing sustainable growth - no less than a third
 of Swiss SMEs do this. Explore the four different variants that shown below: Business This loan enables a company to finance its current assets and to compensate for
 possible fluctuations in liquidity. This is flexible and cheaper than equity. Investment Bank loans that are used to finance investments in the company. This can affect new
 tangible assets such as machines or vehicles in the form of replacement investments or
 expansion investments to boost growth. These loans secure liquidity and increase
 competitiveness. Capital goods leasing Acquisition of mobile capital goods such as machines, production systems or means of
 transport by means of a leasing contract with the bank. It protects liquidity because the
 payment or costs are spread over several years. Factoring The bank buys outstanding receivables from third parties from a company and insures
 them, which protects the company from bad debt losses. The balance sheet is relieved
 and liquidity is increased. Financing is based on the development of sales.

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How Growth Funding Helps Businesses?

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