Working Capital Financing


After tight credit conditions Working Capital Financing has become for SMEs even more challenging. Businesses are struggling to recover enough free cash flow for securing their production. In the short run, the capacity to speed up by investing, hiring or purchasing is the key to satisfy customers and build a long term relationship. So financial directors have to consider, and theoritically access and negotiate, multi-treasury tools to secure their business growth.

According to Altares, delays of payments have spread out all over Europe. As of 4thQ 2013, they reached 16 days in UK, 12 days in France, 6 days in Germany and 21 days in Italy. In addition to financial charges delays of payments represent business risks.

For instance, factors offer financial services for financing invoices. Factoring facilities are ones of the most expensive tools because of managing and running fees, cost of capital and different insurances. Regarding tangible assets, only few banks market credit-bail and lease-back solutions. Particularly used for increasing production capacity, these products allow SMEs to manage their liquidity and control their balance sheet with high flexibility.


FinexKap, online treasury platform

In France and UK, new innovative solutions have been marketed to businesses. From either private or reinsured funds, they tend to reconcile economy and needs of SMEs and offer alternatives to traditional institutions. FinexKap is one of these challengers. FinexKap is an online platform providing simple and efficient treasury solutions to businesses from startups to SMEs.

Of course, private equity remains the most efficient way to secure long term strategy. Investors generaly seek either fiscal relief or capital gains and require sharp investment proposal. A high level of equity allows companies to leverage more debt and secure bank relationship.

Working Capital Financing for hiring, investing, growing and creating added value should remain simple, flexible and cost effective. Our common interest should be to strenghten position of SMEs in our society. This is the reason why EthiCap totaly shares this ethical vision of capitalism with FinexKap.

Paul Mussault

Founder of EthiCap