Setting-up a call for funds
Modification date: 2023-01-31 / View count: 387

Setting-up a call for funds

We use the term "Call for funds" for any action performed to increase the treasury of a company without taking a stake in the share capital. This call for funds can take the form of a loan to the company, but it can also be a donation.

The purpose of a capital call is to enable the short- or medium-term financing of action to market goods or services. The proceeds from the sale will be used to repay the amount(s) borrowed.

The setting up of an appeal for funds must be prepared rationally, as the funds borrowed are repayable. Therefore, income must be generated to meet the repayments. The entrepreneur must calculate the additional amounts needed to finance the operation and estimate, as precisely as possible, the income he expects to generate with the commercial action.

Anyone can be a provider of funds for a company. Our idea is to set in contact with individuals or legal entities having funds and interested in lending their funds against reimbursement, with interest, to companies seeking financing. We are in the financing business between private individuals.

Of course, the entrepreneur can turn to financial organisations such as banks. But these organisations charge usury rates that penalise the profitability of commercial operations and are reluctant to finance companies.

The aim, therefore, is to enable companies to be financed differently.

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