How to finance the growth of your company?
Companies need money to grow. Very few companies can finance their growth from operational profits, or from the funds allocated at the start. Borrowing capital from banks can be complicated for many reasons: too high risk profile, lack of sufficient collateral, or absence of historically proven recurring revenue.
Venture capital rounds provide this essential help to young ang growing businesses. After exploring the nearest circles of ‘friends, family and fools’, most startups go on the path of the ’seed’, ‘series A, B, and C’ financing.
Every company is unique
There can be different markets, different opportunities, and different business ideas. And most certainly, there are different people. Every company is unique, and so are their financial needs, capacity and ambitions. Haerlem Capital offers various models to help FinTech, SaaS and IT companies to achieve their growth plans.
A good business plan is half of the success. The other half is in your data room. The narrative, no matter how great and convincing it is, comes on top. And, from this starting point on, it is all about the “how”, “which” and “when”:
How much liquidity and therefore financing you need to execute your plans.
Which kind of financing source and model are right for you.
When you need the money and when it is going to come back.
Haerlem Capital offers three models of financing your growth:
The table below compares these three models
Type of investment
Time in business requirement
Revenue / cashflow requirement
€ 100,000 per year
€ 100,000 per year
Depending on sector
Balance sheet plus personal surety and guarantees
Balance sheet plus personal commitment
Based on balance sheet
40% of recurring revenue
€ 250,000 – € 2,500,000
Management attention in execution
Costs and repayment
5-10% interest, small commission. Fixed repayment schedule.
Percentage of revenue, small commission. Flexible schedule.
Value of shares sold, initial transaction costs of up to 10% of investment.