Corporate Finance

Alvadas facilitates business funding. Worldwide. Up to 100% funding. Depending on risk profile, value of own assets, or provision of security. All funding opportunities have their own terms, conditions and procedures.

About the need for own assets and a collateral

Depending on the business case, capital seekers may usually get business funding between 50% to 80%. A higher percentage up to 100% is possible in exceptional cases, but never without own assets from the capital seeker, or the provision of any form of security, a collateral, for example. In many countries, a director of a corporation is fully liable if financing has been provided that involves a substantial amount, without any form of security for repayment. An asset is any resource owned by the capital seeker. Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). And a collateral is an asset that a capital provider accepts as a security for the debt payments, the capital provider can seize the collateral and resell it to recoup the losses. 

Required own cash from capital seeker

Depending on the capital provider and the nature of the business case to be funded, your own cash must always be at least € 50.000, also in order to be able to pay financing costs for professionals to be consulted and for (preliminary) due diligence in advance. Because even the well-known investment banks do not work on the basis of no cure no pay. Without any own resources it is hardly possible to obtain funding. The period of a funding agreement usually varies from 5 to 15 years. Sometimes a longer time span is possible. Non-bank capital providers often offer a combination of debt and equity. Sometimes there may be either debt or equity only.

Banking and non-bank capital sources

Banking sources are well known. This is completely different for non-bank sources. Non-bank capital providers in the private secondary market are in no way comparable to banks and related financial institutions. All non-bank capital providers use their own terms, conditions and procedures. On the basis of the business case presented, most non-bank capital providers also provide customized solutions. But many of them do not have a rating, their funding structures are sometimes complex and often unknown to the general public. Documents have no standards and there is a lesser degree of transparency due to the non-public nature. Obviously, non-bank capital providers cannot offer guarantees, such as banks and related financial institutions can give. This does not alter the fact that there are enough successful transactions in the private secondary market.