Every entity, in order to be able to run a business activity, needs capital. Selection of capital source influences, on one hand, height of income gained by business owners / stakeholders, on the other hand, determines financial risk of the enterprise. This happens because, through employment of debt capitals, due to its characteristic financial leverage mechanism, owners / stakeholders are given possibility to gain additional income, and the enterprise can use tax shield, which however increases financial risk in the enterprise.
Comprehensive financing consulting offered by DFC includes 3 stages:
- Consulting on shaping of capital structure that is appropriate for the given enterprise and industry that it operates in,
- Consulting on selection of capital source,
- Consulting on selection of institution and/or shaping of financing sources parameters.
In the stage 1., through establishing of capital structure, accepted financial risk of the enterprise and level of employing of financial leverage effect are determined.
DFC experts, when selecting capital sources, take into account many factors, including mostly:
- Amount of capital necessary,
- Accesibility of financing sources for the given entity,
- Current debt of the enterprise,
- Financing structure appropriate for the given entity,
- Ability to increase equity,
- Current situation in the economy and at stock exchange, and the values of basic macroeconomic indices,
- Financial institutions’ approach to the industry, and the entity itself.
With the above in mind, we provide our Clients with a suggestion of selection of one / some of the following capital sources:
- Subsidy,
- Investment loans / operating loans / mortgage loans,
- Leasing / reverse leasing,
- Mezzanine financing,
- Bond emissions (including public bond emission to the Catalyst market),
- Stock emissions (directed: at an identified group of individuals / current stockholders, to business angels / venture capital funds; to the NewConnect market),
- Factoring.
Stage 3. includes consulting on selection, on the basis of offers gained from various institutions, of the offer that is the most suitable for the Client or determining the most beneficial parameters of capital gaining (eg. for bonds – determining the type of bonds, such as simple (plain vanilla) / interchangeable; height and manner of calculation and payment of interest, additional conditions such as put, call etc.).
For further information please contact:
Dr. Dariusz Stronka: e-mail dstronka@dcfconsulting.eu; tel.: +48 533 805 405
