So, you need resources for your company development. Where can you find them? How can GrafFIN help you with that?
It depends directly on the answer on the question: why you need the resources. Sources of financing depend largely on the purpose of the financing. Let's consider the most traditional areas where you are most likely to obtain external financing.
Trade (including, for example, services related to the installation of simple equipment and its ongoing maintenance). Development requires working capital to finance a wide range of goods and deep inventory levels, in line with the structure of the target market and customer profile. Sources – temporary partnership, a small investment from interested parties (or, conversely, very uninterested parties ...) and a traditional bank loan, usually short-term. It is worth starting with the simplest form of credit – establishing an overdraft facility. In the case of a regularly and rhythmically operating business, this often does not even require collateral – receivables are accepted as collateral and/or additional (non-binding) insurance is paid for it. Alternatively, when you have a small number of stably operating buyers of your products who use their privileged position and require a significant payment deferral (30, 60 or even more days), it is worth using bank factoring. In this case, you will receive a significant part of the cost of the delivered goods (up to 90% or even more) from the bank in a few days, and the rest after the counterparty pays the full cost of the delivery, respectively, after the expiration of the contract term - already to the bank account. Of course, this requires the counterparty's consent, and the bank does not work for free. But overall, it is profitable.
International trade, or how to preserve working capital and increase its efficiency: see our page “International trade financing”
Production / Manufacturing. In the simplest variant, the same working capital is used to finance the production cycle (raw materials/components – personnel and equipment maintenance costs – energy and fuel costs – current storage and internal logistics – sales and marketing costs), but the financing horizon is longer than in the trade variant. In the advanced version – financing Research & Development for the timely modernization of existing technology and equipment. Sources – medium-term bank loan (with appropriate collateral...) or attracting an investor. For more detailed information, please visit the “Investment Analysis” and “Business Planning” pages, because if you apply to a bank for financing, you will certainly be asked to justify your idea and the forecasts for repaying the loan on the terms you expect/ being proposed by the Bank.
Infrastructure projects: please visit our “Project financing” page – even SMEs (small/medium-sized enterprises) will find a place if a critical product/service is proposed.
Grants. Don't be surprised. Even companies that pay taxes can get money from national and international funds if the project aims to meet the needs of (for example) the community and does not generate profits for the contractor. You may ask – why would I need this if I won't make a profit from this activity? Don't forget that due to such financing, you provide remuneration for your employees, maintain fixed assets (depreciation), and increase the efficiency of internal business processes. During this period of temporary market cooling, this will certainly not be unnecessary, and the experience of participating in such projects will be very useful for your company.
Innovative/investment projects aimed at creating new technologies, implementing significant/fundamental innovations that drastically change people's lifestyles and the environment. They usually require venture capital financing and/or cooperation with national, international (in our case, European) funds and programs that support such projects.
Let's focus on this. It is not an easy path, but it is exactly the one that offers significant growth prospects for your company.
Here are some practical tips for applicants (what to do at the beginning):
1. Make a quick compliance map — assign the project to a category: (A) R&D (research & development) / innovation, (B) environmental / energy-efficient investments, (C) export development / marketing, (D) liquidity / loan. This will help you to determine which institutions are most suitable.
2. Check specific competitions and deadlines — most programs have recruitment schedules, deadlines, and the amount of available funds change every month.
3. Prepare financial documents and a description of your business — business plan/implementation plan, financial forecasts, description of results (including KPIs), investment cost estimate.
4. Check the limits and levels of funding in the competition rules — this is the only mandatory document specifying the maximum amounts and percentages of funding.
5. Consider mixed instruments (loan + grant). If the project requires indirect financing, the relevant institutions often offer such programs/financing options. An example of a technology startup using different types of financing was described on the blog in October 2024.
Preparing an application for financing under the above programs requires specialized knowledge, extensive experience, and practical skills. We will advise and support your company in developing a project concept, creating a strategy, practical business planning, optimizing the path to a source of financing in accordance with the nature and focus of the project, preparing a set of important documents justifying the project, and creating financial models and business forecasts. We will guide you to your desired goal along the narrow path between the Scylla of eligibility restrictions and the Charybdis of possible funding limits.
Together, we will pass the path to come your dreams true!
More detailed and up-to-date information could be found in the relevant blog articles. Visit our website.
Preparing an application for financing under the above programs requires specialized knowledge, extensive experience, and practical skills. We will advise and support your company in developing a project concept, creating a strategy, practical business planning, optimizing the path to a source of financing in accordance with the nature and focus of the project, preparing a set of important documents justifying the project, and creating financial models and business forecasts. We will guide you to your desired goal along the narrow path between the Scylla of eligibility restrictions and the Charybdis of possible funding limits.
Together, we will pass the path to come your dreams true!
More detailed and up-to-date information could be found in the relevant blog articles. Visit our website.
