Small and midcap businesses can face challenges to obtain working capital. Capital that is much needed to support growth and market expansion. Capital is the crucial aspect of any business, and there are several financial solutions that help businesses overcome the challenges.
One man that is an expert in financial growth is Dennis Klemming, a successful entrepreneur. CEO and founder of Datocapital, a private equity firm that also invests in fast-growing companies. Datocapital is primarily focused on Europe and the United States. Dennis Klemming is also the chairman of Prudent Group.
Securing founding and find investors
One way Dennis can help entrepreneurs to grow their business is to provide guidance in developing business plans. To ensure that the business plan is solid the work includes market research and financial forecasts, crucial to developing a strategic plan for growth.
Start-ups often need to secure funding, including finding investors. With the guidance of Dennis Klemming who has a large network of investors and lenders, even small start-ups have a possibility of obtaining capital for business growth.
The help includes professional help with how to structure deals, and the crucial part, negotiate beneficial agreements and terms for both investors and businesses. In 2022 Klemming was part of negotiating an agreement with MSP Recovery with Prudent Group to turn assets of property into cash.
Three other ways to obtain working capital
Prudent Group works with companies in many ways to access critical funds. There are several other ways to ensure working capital and cash flow, here are three ways that secure funds.
1. Invoice financing
Invoice financing is one more common way that allows businesses to access funds that are tied up. Outstanding invoices can be large funds that could help companies with short-term financial obligations. The company sells its invoices, often at a discounted rate and receives a lump sum payment. Even with a discount it can help because it efficiently helps to access funds, not having to wait for customers to pay the invoices.
2. Merchant cash advances
This solution can help companies access a lump sum payment, in exchange for a percentage of their future credit and debit card sales. Merchant cash advances are regarded as a flexible financing option, the terms should be negotiated with care since the repayment is tied to the companies future sales.
3. Business lines of credit
This solution is a way to obtain a pre-approved line of credit. This credit can be accessed when ever needed. The interest is paid only on the amount that the company actually use, and the credit can be accessed as many times as needed. There is a credit limit that the business cannot exceed.
