Why is it so important for an organization to work with a financial consultant when seeking financing?
When your business is in a phase of organic growth, having a financial consultant by your side is ideal. They will help you think strategically from a banking perspective so that, in the future, you can obtain financing without difficulties.
If the client runs a business involving many costs, numerous suppliers, staff, and subcontractors, such a consultant can support them with financial indicators and can also help them meet new partners.
Because you are not their only client—they work with many companies—they can connect you further with other partners. You may be a transport company, and they may also have as a client a dealer in Sweden selling cars at very good prices. It is possible you would never meet that partner otherwise. A consultant can give you more attention once you are financially stable and able to grow annually, and can connect you with partners that help your organic development.
When you start working with a financial consultant—regardless of whether you are profitable or growing—it is beneficial to have someone guiding you, at least on the banking side. Especially if you rely on credit. If you do not rely on credit and build your business step by step, you may not need such a person. But if your business involves many costs, suppliers, staff, and subcontractors, a consultant can support you with financial indicators and help you meet new partners.
What services do you offer your clients? What differentiates you from other financial consultants on the market?
I communicate transparently with clients, and if I see that a company has no real chance of obtaining credit, I do not proceed further. I can present the client with a business plan and a strategy to return to a financially viable position.
I work based on a calculation structure built from analytical models used by five banks. Using these models, I created an algorithm that produces the average of the financial indicators used by the five major banks in Romania. This algorithm represents the benchmark of financial indicators these institutions review. When a client does not meet even 10% of those indicators, I explain that we need to work with an accountant for at least a year on those indicators—on turnover, suppliers, clients— because these are the criteria banks look at, and they determine the company’s rating. For example: if a client collects payments in 180 days, but pays suppliers in 90 days, this appears clearly in the banking indicators and the algorithm—there is a 90-day gap where they are fully exposed. You can be a €40 million company, make investments, and still appear, from an indicator perspective, like a brand-new business with significant debt.
So your advice is that companies should not come to you at the last minute, but rather anticipate the need for financing and bring you in months earlier?
Not just months earlier—much earlier. I work with a company that started in 2014 with a €20 million turnover and today has €140 million. I perform this indicator analysis for them every year. They take the results seriously, and they have no problems obtaining financing anywhere—domestically, internationally, or even if they were to list on the stock exchange.
You mentioned earlier the algorithm. Is this kind of strategy something consultants typically develop on their own, or what is standard practice?
I have never met anyone else who has something similar. In other words, I have never met another consultant who works this way. Typically, files are submitted to the bank, and the consultant waits for a financial analysis. From there, you form an opinion of the client’s financial standing. But this wastes time, and that analysis reflects the perspective of a single bank. That bank may have stricter internal restrictions than others in the market and may not be willing to finance the project at all—again costing time. For me, that approach can waste 2 to 7 days.
From your experience, how many Romanian companies with significant turnover use such services?
Fortunately, more and more. This is very positive, because they are becoming aware that they depend on external partners. They are planning for the future—whether for bank financing, stock market strategies, or potential bond issuance. And “future” does not mean one year—it means a minimum of five years.
More and more Romanian entrepreneurs running real businesses—not those depending on state contracts—understand the value of an external opinion and are open to hearing the truth about their company’s situation. A good example is Autom, a 100% private company founded by two brothers, which last week secured a bond financing of approximately €20 million. These individuals had a long-term vision, consultants, and a broker who presented the bond issuance. As a CEO, you cannot do all these things alone—it is impossible. You cannot manage your daily operations and simultaneously find the optimal financing strategy for the future.
What are the obstacles that truly stand in the way of financing? What factors can help obtain funding outside of traditional loans?
If the Romanian state budget is not approved by year-end—as happened this year—the state automatically stops paying invoices to companies working with it. Many companies rely on factoring for these contracts, and when the state does not pay, the factoring company cannot pay either.
In the private sector, your supplier may fail to deliver goods on time, which blocks your orders. There are countless scenarios when your business depends on suppliers and clients. If you rely heavily on one or two clients, and they fall behind on payments, you will almost certainly encounter problems. The solution is to have a consultant on your side—someone who understands this dynamic, just like a lawyer who believes in your case—working with you for a period of time to secure the financing needed to save the business. Because if you cannot pay your loans due to being blocked by suppliers, the only outcomes are bankruptcy or insolvency.
Unfortunately, in Romania, insolvency is a very serious stigma. Even if you settle all your debts during insolvency, if you open another company two or three years later, banks will still hesitate to finance you simply because you once went through insolvency.
If I have multiple delays on an existing loan, can I still qualify for a new credit facility?
Normally, no. Banks are very restrictive. Whether you go to your home bank (the one holding your accounts and previous loans) or another bank, significant delays make financing difficult. I am not referring to occasional or minor delays, but to constant or substantial ones—90 to 180 days. However, if someone stands beside you—a consultant with banking experience—your case can be presented with proper explanation.
A consultant knows exactly which bank to approach and how to present your case—much like a lawyer. The difference is that they speak to someone familiar, while you would likely speak to someone who doesn’t know you. And even if you are a very large company, there is nothing wrong with having relationships or connections. For example, you may know a board member—vice president or president—of a bank.
What solutions exist for companies considered difficult to finance?
If a hard-to-finance company does not have a problematic background—such as criminal cases or association with known criminal networks—and if the issues causing financing difficulty can be reasonably explained, a consultant will know how to resolve the situation.
You may find a consultant who knows exactly whom to approach: a bank, a financial institution, an external financial partner, or even an investment fund willing to take the risk—provided there is potential.
About Dionis Bălan
Dionis Bălan is a financial consultant with over ten years of experience in the corporate banking sector and more than five years in consulting. He has a diverse client portfolio across most economic sectors—from transport, including maritime transport, to various industrial producers, agriculture, and defense.
For more details about Dionis Bălan and his projects, visit dionisbalan.ro or his official Facebook page.