A good business is not necessarily a good credit risk. And a good loan is not always the best solution for a business.
Throughout my career, I have had the opportunity to view financing from different perspectives: investments, banking, corporate finance, and now the leadership of financial companies. That experience has made one thing very clear to me: financing a business should not be reduced to securing the lowest rate.
We need to understand why the business needs capital, how it generates cash flow, when it can repay it, and which structure allows it to keep growing without compromising its operations.
Sometimes the answer will be a loan. At other times, it will be leasing. And in some cases, it will make more sense to combine different funding sources or first strengthen the capital structure.
The challenge on the financial institution's side is also significant.
We want to support our customers' growth, but doing so responsibly requires financial discipline, a sound understanding of risk, and transactions structured to work for both parties.
I believe this is one of the most interesting aspects of our sector: well-structured financing does more than address a liquidity need; it can become a tool to accelerate a company's growth.
I will begin using this space to share ideas and experiences on business financing, strategy, risk management, and financial services.
#CorporateFinance · #BusinessFinancing · #Strategy
Personal content for informational purposes. It does not constitute advice, a recommendation, an offer, or a solicitation to engage financial or investment products or services.