Financing with equity is the most reliable method of investing in companies. Therefore the BAFICO only works with equity. This means that all financial transactions are solely financed with equity of the share holders of BAFICO and with the own assets of investors (refinancers) linked with the share holders. BAFICO does not accept liabilities. Balance Sheet without Barter Capital
Click to open/close larger view Balance Sheet with Barter Capital
Click to open/close larger view The capital increase is effected by means of a non-cash contribution in kind in the form of a dormant equity holding. The barter capital is the non-cash contribution. This item is booked in the company's balance sheet as 'other assets'.
As well as the general improved rating under Basle II, the capital increase also satisfies the requirements of factoring companies, which expect an equity ratio of 20%.
Of course, barter capital also can be used to settle the account of a supplier.
New business – Capital increase
Comparable to leasing arrangements, the client pays fees for the use of the equity capital and does not have to provide the entire balance sheet equity capital sum of.
Government subsidies
Primarily, BAFICO barter capital is for meeting the equity ratio required by awarding bodies (State and EU) as an eligibility criterion for public subsidies and grants.
Provision of guaranties
If a company must provide guaranties to be able to process a transaction, banks require collateral and will reduce the line of credit accordingly.
Conclusion: Bank guaranties reduce the line of credit – BAFICO Barter Capital does not.
BAFICO will create an individual solution to meet the client's needs, free of charge. The actual business relationship does not begin until all questions have been answered to the parties' satisfaction.
|
