In this period of health crisis, the needs in financing of cash flow or growth are sometimes more complex to find, here, some alternative sources of financing that we will develop in future publications:
- Trade for share
- Impact investing
- Local currencies
- Investment in private companies
- Pure participatory financing
- Debt financing
- Conversion of receivables or debt
All these sources of financing have the advantage of allowing to get out of the classical circuit, and even, sometimes, to pay back by generating an additional turnover, for example: The trade for share allows to transform capital into work, for the companies which are owners of an asset which they need (logistics, stores, materials) or improve the purchasing power for those who wish to acquire their own company.
And in the field of small businesses, all these sources of financing, including Crowdfunding, allow to avoid alternative financing, however less advantageous longer term than the bank loan.
Explaining the advantages and disadvantages of most alternative financing sources is very difficult in a simple article, we will quickly detail them, following the nagging points:
- Crowdfunding is an alternative to traditional financing, but where the capital may disappear overnight in case of speculative situations.
- Factoring, a tool for reducing invoices, for example in case of payment difficulties.
- Investment impact, a tool to increase partner loyalty with specific pathways and certain stated deadlines.
- Local currencies, private money like the PLEUR in France, or public money like the Mols or BEuros.
- the partnership investment certificate: to sell to other investors and not to the companies themselves.
- Bartering, another alternative for very small quantities of goods or services.
- Factoring, another tool for SMEs to save on invoices.
- The investment impact, allowing to increase the loyalty between partners while freeing themselves from bad creditors.
- Participatory financing, a means of financing projects offering project holders direct access to the resources financed and therefore a faster access to professional life.
- The backlease, allowing greater economic and financial independence.
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