smzh blue logo

Investment financing

Investment financing – Safeguard your future smartly

Investing means allocating liquid financial resources. Liquidity is foregone based on the expectation that future cash flows will increase your wealth or enhance the value of a company.

From a corporate finance perspective, investing involves converting liquid assets into fixed assets. A distinction is made between tangible investments (such as buildings, machinery, vehicles), financial investments (such as loans, equity stakes, etc.), and investments in intangible assets (such as research and development, licenses, patents, etc.).

Investment financing – the raising of capital to finance investments – offers entrepreneurs an attractive opportunity to make medium- to long-term investments in fixed assets, and thus in the future of their business.

Several advantages for your business

  • Bridging mid- to long-term capital requirements
  • Calculable borrowing of funds
  • Protection of investments to further develop the business
  • Rapid availability of liquidity
  • Protection of liquidity used for ongoing operation
  • Possibility to adjust amortization rates to operating cash flow

Investment with foresight

Prepare your business for future challenges by regularly investing in your necessary operating resources, for instance innovative technologies or an expansion of your production capacity.

Planned repayment

Thanks to fixed amortization, you always have a clear overview of your investments, enabling you to make a detailed and reliable financial plan.

Aspects of liquidity management

In the context of investment credits, some essential aspects of liquidity management are:

  • Repayment plan: Establish a detailed plan that shows the structure of repayments over the term of the loan.
  • Cash flow analysis: Conduct a comprehensive analysis to ensure that the income expected to come from the investment project is sufficient to cover loan repayments.
  • Liquidity reserve: Build up a reserve to cover unforeseen expenses.
  • Flexibility of the repayment plan: Negotiate flexible repayment terms to prevent liquidity tight spots.
  • Consider interest rate changes: Factor in potential interest rate changes to cushion fluctuations.
  • Proactive and immediate communication with the lender: This can help find solutions in case of financial difficulties.
  • Monitoring and adjustments: Adjust your financing strategy continuously to your current liquidity situation.

In sum

An investment credit provides a solid base for the future-oriented development of your business. Thanks to expert planning and liquidity management, you make sure that your business is successful not only today, but also tomorrow.

image - desktop

smzh advice

Let us examine what options there are regarding an investment credit. Rafael Szucs, Head of Key Clients & Corporates, stresses how vital careful preparation is to seek an investment credit:

"My experience shows that careful preparation is essential to hold effective talks with financing partners. Use expert knowledge to strengthen your negotiating position and guarantee optimal financing solutions for your venture."