To look for “good debt”, we will provide answers together with entrepreneurs to simple yet crucial questions:
Is the financial structure coherent with the business model?
Are long-term investments financed by adequate debt tools?
Are debt tools only from banks? Could we evaluate complementary tools, such as private debt funds or medium-term transaction insurance policies?
Are we aware of the impact of working capital (credits, suppliers, stock) on the company liquidity?
Are we willing to welcome Fintech innovations of the third millennium for the optimization of working capital (credits, suppliers, stock) now available on the market?
After an initial analysis, Nexus AC Finance elaborates a strategy together with entrepreneurs that engages all stakeholders (banks, private debt funds, SACE, private insurance companies, fintech, etc.), adequate and able to support the growth of the business, even by simply streamlining the management of working capital.
The consultancy goes on on to the following step that is the evaluation of negotiable and technical aspects of the debt, the corresponding costs, and legal issues.
“The question you should ask yourself is: Is debt good? Only if the business undergoes such a restructuring that it’s then able to become independent…this is good debt because you have used it to relaunch a company on the market and make it self-sufficient. Bad debt is the one that implies sustained subsidies without a business and industrial plan”