When companies consider larger growth plans, their internal resources may often be inadequate to fund the next, expansionary stage of development. As a result they need to turn to outside financing. Depending on life-cycle phase, growth strategy and financial needs, companies have a choice of financial instruments and partners. It is advisable to analyse the available options at an early stage when planning a growth project.

Growth strategies and financing options
It is necessary to distinguish between specific forms of financing on the basis of the company's life-cycle phase and its strategic decision in favour of expansionary development: growth financing, capital expenditure financing, acquisition financing and project financing. In principle, all of these forms of financing are basically concerned with growth. Hence, it is not always possible to clearly distinguish or define the appropriate form of financing for the adopted strategic measure. 

Sources of growth financing
The prime source of financing for risky projects are investors willing to bear the correspondingly higher level of risk. These may be existing shareholders or, depending on the risk involved, venture capital or private equity firms or risk-bearing providers of capital. As a reward for bearing greater risk they will expect to receive correspondingly higher returns. The degree of risk will also determine the form, conditions and sources of the financing:

Private Equity
Initial Public Offering (IPO)
Mezzanine
Debt Financing

As an international, independent consulting firm focused on small and medium-sized companies (SMEs), we accompany and support you in your financing project. We look forward to welcoming you to a personal meeting to discuss your growth project and consider the suitable form of financing.