The potential to grow through corporate acquisitions is great, but it can be difficult to access the capital needed to succeed. With today's capital adequacy rules, banks are often reluctant to finance small and medium-sized companies. However, there are other, more flexible, financing options available than traditional bank loans. By offering acquisition financing when the banks do not, the Kreditfonden contributes positively to Sweden's development and growth, as the opportunity to make important acquisitions is based on the availability of capital.
What is the benefit of acquiring instead of growing organically?
Instead of starting a new business in a new market, it may be smarter to buy a similar business, with an existing customer base and established local partnerships. Right now, there are also many profitable and well-managed companies in the market that are undergoing a generational shift, which creates good potential for acquisitions. Through acquisitions, the company can quickly gain new expertise and expand faster than through organic growth, which is often desirable to maintain or increase its competitiveness.
How is the financing going?
Business financing is the capital raised for the purpose of purchasing another company. Often such financing arrangements consist of several different types of capital, which can be both costly and time-consuming. & #8211; We strive for short lead times and want to be a "one-stop shop" with lower total cost for the borrower, says Fredrik Sjöstrand, CIO and co-founder of the Credit Fund.
The credit fund's investment philosophy is based on facilitating small and medium-sized companies to expand and develop. At the same time, unique investment products are created with little or no correlation with other markets. Direct loans are an asset class that has grown in popularity since the financial crisis and subsequent regulations, where stricter requirements have been placed on banks. In terms of financing, this type of loan can be directly crucial to a company's ability to succeed with its growth strategy. - Business financing is an important part of our strategy to support well-run Nordic companies with funding for continued strong growth, says Fredrik Sjöstrand.
About the Credit Fund
The credit fund is keen to be flexible and responsive but follows a strict borrowing process. This ensures that investors can be assured that the companies that the Credit Fund lends capital to will repay their loans. The companies Kreditfonden lends money to are primarily located in the Nordic countries and in need of capital for expansion, investment, restructuring, refinancing, seasonal variation in liquidity, bridge financing or other financing between 20-300 million.