Financial Guide

Dionis Balan > Dionis Balan > Financial Guide

CHAPTER I - Introduction

With ten years experience in banks, on the corporate side, Dionis Balan came up with the idea to create a financial consulting department, within Dionis Capital, following the interaction with the entire range of clients of banks, but especially on the average corporate segment, many of them facing difficulties in obtaining financing.

CHAPTER II - Offer / Products

Investment credit

Credit for working capital

Credit for financing the current activity

Factoring and discounts

Bank guarantee letters

Refinancing solutions

CHAPTER III - Difficulties of companies in accessing financing

We live in a paradoxical country. In 2018 we had a record number of companies that applied for insolvency. It is very difficult to work with a company that is insolvent, as banks are currently very reluctant to lend normally.

First of all I have to know the point where the insolvent company is located. An entrepreneur knows and anticipates when it will go into bankruptcy. The insolvent entrepreneur must be very honest with the banks, very honest with his creditors, suppliers and customers.
It can be financed through a very well developed business plan, by the person dealing with the case, insolvency, transparency, but there are few cases that have managed to be financed in insolvency.

Unfortunately, our banking system is heavily built, bureaucracy is stubborn so I know of cases where they simply gave up their business. That’s why I see many in the market entrepreneurs who have reached a certain level of saturation to become physically and physically tired.

Here are some criteria that should be considered in order to access funds for companies:

Lack of experience in drawing up a realistic and appropriate business plan for the new investment.

The most important thing is for the Romanian entrepreneur to reach the point where he realizes that he does not have to lead and control everything. He can’t do that. It all starts from the financial education but unfortunately you can no longer do basic financial education to an entrepreneur at 30 or 40 years, he must somehow become aware of that.

Financial education is a real problem in the economy. There are too many people involved in the business who act from impulse, from flair, and too few on solid, economic considerations. This is how you reach investments over possibilities in buildings and other goods.

It is often because of this that he often fails, because he thinks it is not necessary to contact a financial consultant.

Bureaucracy

Unfortunately, our banking system is heavily built, bureaucracy is stubborn, so there have been cases where Romanian entrepreneurs have simply given up on business.

Lack of involvement of banking staff

Adequate training of employees can help reduce the level of non-performance, temper the need for credit restructuring and support the medium and long-term profitability of banks. In addition, it may contribute to a reduction of the possible negative effects of some laws that aim to solve the situation of some debtors who have borrowed in a period characterized by a strong growth of lending.

Lack of guarantees

The lack of own guarantees is one of the main reasons for rejecting the credit applications faced by SMEs. The guarantee of the fund can be granted only at the request of the bank.

The SME client, together with a financial advisor, addresses the bank in order to apply for the loan.

In order to guarantee the loan, it is desired to complete the real, personal guarantees, with the guarantee of the Fund.

If the credit application fulfills its own financing conditions, the fund is requested to grant the guarantee.

Insolvency in the past or in the group of companies

The insufficient financial resources, the wrong investments and the lack of a risk strategy based on the realities of the economy are the main reasons for the failure in business.

Unfortunately, many banks, especially large ones, have certain knockout criteria that they do not finance even if you open a business. It’s a lot of work and everything has to be very transparent.

As prime reasons for exclusion may be the budget debts and the state of insolvency.

CHAPTER IV - What does financial intermediation really mean and why is it absolutely necessary?

Financial intermediation represents a short time and few headaches. We take over a file, we do an analysis on that file, a risk analysis, a business analysis and a financial banking analysis with the partners we work with in the banks.

A consultant knows very well what negotiation possibilities he has for a financing contract. It is very important to negotiate because a client does not have to remain captive to a bank and to get out of that banking relationship, it pays a lot.