In a simplified way, companies seek to maximize their profits through the exploitation of their activity or business so, theoretically, they would only have to be financed both to be able to increase production, and to perform the necessary marketing tasks to be able to sell said production .
We analyze more deeply the real situation of the companies
we see that not only do they need financing to increase their activity, but they may also need it to expand their social capital, to expand geographically, to invest in replacement of machinery, etc. In the end the correct activity of a company depends on the operation of many small parts that will constitute a whole. That is why it is important to differentiate loans to companies for working capital and investments.
First of all, we will summarize in this infographic the credits to companies for working capital and investments.
Loans to companies for working capital
Loans to companies for working capital involve their financing for all activity related to the daily activity of the company. Basically it is:
- Current and liquidity for day to day
- Purchase of supplies
- Payments to suppliers
- Effects to assume payments and outstanding debts, etc.
These loans to companies for working capital are essential since they allow to continue with the corporate purpose of the company.
Loans to companies for investments
However, the previous ones must be complemented with the credits for investments that are what allow the company to evolve. The investments made by the company correspond to:
- The financing of new stores
- New machinery
- A new social activity for the company, etc.
Loans to companies for working capital and investments
At Good Finance, we understand the importance of loans for working capital and investments, so we finance both so that the company can cover all the financing needs that arise.
It is important to differentiate loans to companies for working capital and investments because depending on the loan requested by companies, they will have different characteristics and their study will also be different.