The importance of having financing strategies

Every organization needs to sustain its operations. Day-to-day processes are usually leveraged with positive cash flow, but there are times when more resources need to be raised. That is why it is essential to establish financing strategies specially designed considering the requirements of your business.

According to the Bank of Mexico’s report on the Evolution of Financing for Companies, only 16.8% of companies used bank loans in the last quarter of 2020, while this rose to 20.8% in the first quarter of 2021 due to the need of companies from an economic recovery.

According to the entity, between January and March of this year, 65.8% of the companies reported that they used supplier financing, while 34.3% opted for commercial banking, among other options. To make the right decision, it is necessary to analyze the needs of the company in relation to the various alternatives on the market.

Now, what is a financing plan for? Basically, this set of guidelines allows you to assign the necessary resources to meet certain objectives, from opening new branches to renewing equipment, to name a few.

The importance of establishing financing strategies

Beyond understanding what a financing plan is for, it is important to keep in mind that its correct design and implementation is key to:

Sustained growth

Every company needs to cover expenses such as the purchase of equipment, repair of machinery or make investments to enter new markets. To face these challenges without the risk of decapitalizing your business, it is essential to have a short, medium and long-term financing strategy.

In this way, you will be able to anticipate various scenarios and you will achieve sustained growth of your business.

Optimize processes

The growth process of a company requires constant planning and clarity in the allocation of resources. Without a clear financing plan, workflows are more likely to slow down, since at each stage the feasibility of operations will have to be analyzed depending on the resources available.

Be at the forefront

One of the main advantages of having a good financing strategy is that companies can keep their infrastructure up-to-date, which is crucial for maintaining competitiveness and adapting to market requirements.

Learn about the different financing alternatives

Currently there are various business financing mechanisms that will allow you to obtain the resources that your company needs.

For example, there are government programs that are mainly aimed at enterprises with great development potential. But what about medium or large companies? Some of the main financing options they have are:

  • Pure or financial leasing, through which you can access high-value assets through monthly rents. Once the agreed term ends, you can buy the assets, renew the lease or withdraw.
  • Business credits. This alternative is of great value for the growth process of a company, since it allows organizations to obtain resources to solve any objective, such as buying raw materials or renewing the company’s image.

Now, so that you can opt for the financing alternative that offers the best conditions, you must analyze the offers and always rely on an entity with a recognized track record.

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