Corporate Financing –
unsecured, fast and tailored

Key facts at a glance:

• Companies can draw on a wide range of financing instruments, including equity, debt capital, mezzanine capital and supplier credits.

• Depending on the specific requirements and development phases of the company, both short- and long-term financing options are available.

• A well-planned financing strategy considers the optimal mix of equity and debt capital to ensure the company's liquidity, profitability and financial independence.

• A thorough analysis of the financial situation and potential risks is crucial to identifying and utilising the best financing options.

• Modern digital platforms like Teylor offer fast, unsecured and tailored financing solutions that significantly reduce the time and effort compared to traditional banks.

• Financing offers should be individually tailored to the needs and goals of the company to ensure maximum effectiveness.

• A transparent and secure application process is essential to building trust and ensuring the financial stability of the company.

What Does Corporate Financing Mean?

Corporate financing refers to the procurement and management of financial resources necessary to support a company's business activities and promote its growth. These financing arrangements can consist of equity, debt capital or a combination of both and are crucial for the company's liquidity, profitability and long-term stability.

Why Is Corporate Financing Important?

Corporate financing is of central importance as it ensures that a company has sufficient financial resources to achieve its operational and strategic goals. It enables companies to make investments, finance working capital and bridge financial bottlenecks. Without a sound financing strategy, a company can have difficulties growing, remaining competitive and meeting its liabilities.

Corporate Financing – Unsecured, Fast and Tailored

As the owner, managing director or CFO of a medium-sized company, you face a major challenge: finding the right financing for your plans. Banks are often no longer reliable partners in this regard. Therefore, you must navigate the jungle of numerous corporate financing instruments yourself while always keeping an overview.

Teylor supports you in finding your financing strategy and accompanies you step by step in raising capital to achieve your business goals. Take advantage of our offering: our unsecured corporate loan with fixed interest from EUR 50,000 to EUR 1.5M+ is fast, digital and tailored. We have already helped many companies successfully implement their financing concepts. Let us help you too.

Advantages of corporate financing through Teylor: fast, tailored and straightforward

We specialise in small and medium-sized enterprises and offer unsecured loans with fixed interest between EUR 50,000 and EUR 1.5M+. An additional advantage is that loans can be disbursed within 48 hours.

That is why Teylor is the perfect digital lending platform for small and medium-sized enterprises. Our unique analytical approach uses state-of-the-art technology to precisely evaluate your data and offer tailored corporate financing for your needs. Our experienced team of credit analysts conducts a comprehensive risk and credit assessment as well as an individual qualitative evaluation of your company's financial situation — all free of charge.

If needed, we conduct a personal consultation to advise you on your financing options. Benefit from our comprehensive industry understanding and our expertise in the SME sector. Let us help you find the right financing solution for your company.

Comparison Teylor vs. Banks: Why You Should Choose Us for Corporate Financing

Teylor is an innovative digital lending platform that offers you fast and straightforward corporate financing. Unlike traditional credit institutions, you save time and paperwork with us, as the process is entirely digital and tailored to your needs.

Our proprietary modern analytical approach enables us to evaluate your data quickly and precisely. An experienced team of credit analysts conducts a comprehensive risk and credit assessment and individually evaluates the financial situation of your company.

After your non-binding enquiry, you receive an offer immediately. Consultations take place in a productive atmosphere and our personal service is available to you throughout the entire credit process. With us, there are no long waiting times and no cumbersome paperwork. You simply submit a manageable number of documents, which we process digitally and encrypt securely to banking standards. This way, you can rely on fast, tailored and secure corporate financing from Teylor.

What Goals Are You Pursuing with Your Corporate Financing?

In addition to raising debt capital through bank loans, corporate financing is about the optimal design of your financial planning. Both equity and debt capital play an important role in achieving your goals through the right financial instruments. The key is to pursue an appropriate financing strategy in every phase of business development and to align the goals of your financing as effectively as possible.

These include, among others, securing liquidity, the profitability of business activities, financial independence (also known as financial autarky) and the security of invested capital. These goals are in constant tension with each other, and a suitable financing mix can help you achieve them. You can draw on a wide range of different financing instruments, all of which fulfil the various goal dimensions in different ways.

Corporate Financing: Tasks and Financing Options

Every financial decision you make affects your corporate financing. Therefore, you should ensure that you fulfil the core tasks of corporate financing, in particular:

• Ensuring sufficient liquidity to cover liabilities and future expenses.

• Continuous analysis and planning of financing needs in the short, medium and long term

• Monitoring potential risks and seeking favourable financing opportunities.

• Examining optimisation potential and comparing traditional capital providers with innovative providers like Teylor.

Although self-financing through provisions or retained earnings is an option, it may be necessary to turn to external capital providers. Both equity and debt financing are available for funding investments. An optimal mix of equity and debt capital is crucial in every phase of business development. Both financing options have their advantages and disadvantages and must be carefully weighed up.

Well-designed corporate financing contributes to the long-term development of your company. With the right financing mix and consideration of the various goals of your financing strategy, you can successfully shape your corporate financing.

Which Corporate Financing for Which Development Phase?

The choice of suitable financing instruments depends on the challenges your company faces in each phase of its development. In the founding and start-up phase, equity is the predominant source of financing for most companies. But the more mature your company becomes, the greater your need for both equity and debt capital.

As a rule, both types of capital procurement are critically important for the long-term survival of your company.

During the growth phase, you need capital for different periods and purposes, so it is important to keep an eye on all relevant corporate financing instruments and to quickly recognise the advantages and disadvantages. Let us take a closer look at the options for established SMEs.

Corporate Financing for SMEs: Efficient with Equity and Debt Capital

German SMEs often strive to self-finance their company and investments during growth phases through equity. However, this is rarely realistic, especially for capital-intensive businesses in the machinery or high-tech sector. For such companies, it is necessary to finance new acquisitions and working capital for orders before sufficient cash reserves have been built up. Equity and debt capital are therefore equally important allies and indispensable components of successful corporate financing for SMEs.

The Most Important Corporate Financing Instruments for SMEs

Targeted management of equity and debt capital is of central importance for many small and medium-sized enterprises to ensure sound corporate financing. Various financing instruments are available that can be sensibly deployed depending on the phase of business development.

Among the most important instruments are factoring, leasing, supplier credits, private equity as well as mezzanine capital and business loans from banks or online platforms like Teylor. In this article, we highlight the advantages and disadvantages of these instruments and give you an overview of their applications for SMEs.

Corporate Financing: Supplier Credit as a Quick and Straightforward Option

Supplier credit is a well-established method of corporate financing and is particularly used in industry and trade. Here, the supplier grants the customer a short-term credit by issuing an invoice with a payment term.

Unlike other financing instruments, borrowers do not need to make a formal application, as the supplier credit is contractually offered and granted. Creditworthiness and collateral play no role here. Although seemingly inexpensive at first glance, borrowers should keep an eye on the implicit interest costs. The cash discount rate included in the invoice can, when converted to annual interest rates for high invoice amounts and many payments, become very expensive.

In this case, it may make sense to settle the invoice through a business loan from online lending platforms like Teylor to avoid high interest costs. Borrowers should carefully examine for larger payments what impact the difference between the discounted immediate payment and the net amount when using the payment term will have on their cash flow.

In many cases, it is actually cheaper to settle the invoice quickly and not take up the supplier credit. Only when this is not possible should the supplier credit be utilised to the last day of the payment term to minimise the interest rate.

Corporate Financing with Mezzanine Capital – Characteristics and Advantages

Mezzanine capital is a well-established method of corporate financing, but one that is often unknown among small and medium-sized enterprises. It is a type of financing that has both equity and debt capital characteristics.

Some capital providers can make contractual agreements that oblige your company to maintain certain balance sheet ratios or a minimum equity ratio. Although this strengthens financial soundness and professional corporate financing, it can also bring restrictions.

The contract may also include penalties if your company fails to meet the financial figures, which increases the capital provider's influence. If you are looking for a flexible and reliable financing solution, mezzanine capital can be an option.

Private Equity and Corporate Financing – How Equity Investment Works

If you are looking for capital for your company, equity investment can be an option, particularly if you are in the scaling phase. Private investors such as venture capitalists bet on the growth potential of your company and offer you an alternative financing solution.

Unlike banks and other debt capital providers, equity investors expect a higher return and actively participate in management. They bring in their expertise and network to drive the growth of your company. In some cases, they also participate in the increase in value of your company by later selling their shares.

However, taking on equity investment also has disadvantages. The investors can put pressure on management and demand significant cost reductions, which does not always align with the intended increase in company value. Moreover, it can be difficult to find a suitable capital provider who is also willing to accept extensive co-determination rights.

The decision for equity investment is a long-term, strategic decision and should be carefully considered. In other cases, such as growth or working capital financing, it may be more sensible to take out a business loan through a bank or an online lending platform.

If you decide on equity investment, you should prepare for a thorough due diligence examination and ensure that the investors and your company are a good match. A clear agreement on the rights and obligations of both parties is indispensable.