How companies with weak credit ratings can finance growth
Our offer is aimed at any entrepreneur who wants to finance a growth spurt — without giving up shares in his company. The demand is immense, whether in retail or production. Financing is far too often a brake on growth. We want to change that. Entrepreneurs need flexibility in loan volume, maturity, and a financing structure that precisely fits their value chain. We’re looking at that very closely. Additional added value is provided by our risk analysis of the value chain and recommendations for efficient risk management. In this respect, we have absolutely identical interests with our credit customer. Better risk management ensures that more customers have access to financing — from startups to established companies looking to finance a large contract. With our financing, the entrepreneur can take advantage of opportunities without having to give up shares to a co-investor. Result: The full increase in value belongs to the entrepreneur. That is the guiding principle of our new trading fund.
We analyze the entire value creation process in order to be able to provide the maximum value contribution with our financing. We focus on the transaction structure, not on a customer’s creditworthiness. The transaction itself is our security. This makes it possible to provide financing to start-ups as well. And startups can use their investors’ money for structural investments instead of tying it up inefficiently in goods and receivables. Our approach is the entrepreneurial perspective: How do we manage to increase capital productivity together? Through intelligent financing, one of our retail customers, for example, managed to triple its sales and quadruple its earnings. For retailers, this is a familiar phenomenon: it works the same way as a three times faster inventory turnover speed. We can finance a line of up to EUR 5 million per company with our current fund, which we make available as flexibly as an overdraft facility. Companies then use this financing as needed for a few days or several months — but in all cases to procure additional volumes and deliver them to their own customers. We start as low as 100,000 euros when revolving financing is required.
These are high-profile entrepreneurs, top managers, investors with distinctive financing expertise and family offices of entrepreneurial families. Our investors understand very well what the differentiating advantage of our financing is and have studied our model intensively. We have been inspired by traditional, very clever financing models from ancient Greece and Palestine, Genoa, Venice and Flanders. In short: We participate in the success — in case of failure we also go empty-handed. We have therefore also made a very conscious decision not to charge structuring fees. We consider it central that the interests of loan customers and financing partners are aligned. This also convinced our investors. Together, we want to enable the success of a transaction. A fair model with simple rules. Companies only pay for what they actually get — a financing framework and a loan actually drawn down to finance their growth.
About CREDION AG
CREDION AG (“Loans when it counts”) finances entrepreneurs and their companies in challenging growth phases, during takeovers, in succession situations or basically in special situations with credit and supports know-how. CREDION AG is backed by a large circle of high-profile entrepreneurs and wealthy individuals who think and act like entrepreneurs.