Better financial advice in response to rising rates

Rising interest rates make it more expensive and more difficult for companies to access financing. The two hikes decreed by the European Central Bank in two months are unprecedented and happened at a time of maximum economic uncertainty: galloping inflation and the threat of recession are coupled with rising energy and commodity prices, while the war in Ukraine continues. This is why many plans and projects can be frustrated by a lack of funding if new and alternative solutions are not sought. Expert and professional advice such as that offered by Kaizen Consulting will be essential for companies, which will no longer be able to meet their liquidity needs by resorting to the usual channels. Fortunately, the range of funders has expanded exponentially and there are new solutions on the market to provide solutions for companies. But to be able to access them and find appropriate tailor-made solutions, specialised advice is essential.

The increase in financing costs is a major problem for the business community because paying more for money has a decisive impact on business plans. In the second quarter of this year, the demand for credit by companies already fell, and this fall is expected to be much greater in the third quarter. There is a risk that investment will slow down, as will consumption. In recent months, the rise in energy and commodity costs has been triggered by the weakness of the euro against the dollar. And doubts about Russian gas supplies will persist into the winter. The industrial price index in Spain, calculated by the National Statistics Institute, closed July with a rise of more than 40% and the energy price index doubled.

Against this backdrop, it’s taken for granted that credit will be tightened and that it will become more expensive. The economic situation requires anticipation more than ever to obtain the liquidity required for business plans. Kaizen Consulting’s experience guarantees direct access to more than 200 financiers from traditional and alternative banking. This means a rapid response capacity, with advice and support throughout the process of seeking financing.

Outsourcing the search for funding

One of the options Kaizen Consulting offers is to become the company’s financing search team. This relieves companies of a significant workload and provides the advantage of counting on experts capable of handling the entire financing process. Because the capture of liquidity increasingly requires a high degree of specialisation and an exhaustive knowledge of all the options available on the market. Our team is in close contact with all types of funders, has access to new fundraising opportunities, and is clued-up on new developments in the market.

During the last few years of the pandemic, small and medium-sized businesses have been forced to restructure their debt and seek alternative sources of financing to keep their businesses afloat. In this context of economic and social uncertainty, Kaizen Consulting has been responsible for helping companies by offering liquidity capture strategies, a decisive factor in avoiding bankruptcy. This task requires thorough knowledge of all options available on the market. Our team is in close contact with all types of funders, has access to new fundraising opportunities, and is clued-up on new developments in the market.

To cope with rising interest rates, economic uncertainty, inflation, and rising energy prices, we recommend companies turn to the expert advice we offer at Kaizen. If you would like to know more about what we can do for your business, we would be happy to meet you and show you flexible and effective solutions to meet your business plans and gain traditional and alternative financing.

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