Alternative sources of financing - an innovative way to the go

UniCredit Bank Slovenija d.d.
Thu, 15/12/2022

Ljubljana Stock Exchange and GZS united against inflation

                                                                                                                                                                                                                                                                                                                                                                                          On September 27, 2022, the Ljubljana Stock Exchange and GZS (Chamber of Commerce and Industry of Slovenia) organized a conference with the goal of presenting available alternative sources of financing to Slovenian enterpeuneurs.

The countries of EMU have been dealing with historically high inflation (peak of 10,7% in October 2022). European Central Bank responded with the plan to start raising interest rate, which it began implementing in July 2022. The last interest rate raise occurred on November 2, 2022 when the Governing Council decided to raise the three key ECB interest rates by 75 basis points.

Higher interest rates have an impact on the financing of companies and Slovenian entrepreneurs should consider how they will find funds necessary for their company's operations. During the period of extremely low (even negative) ECB interest rates, the financing of companies has been been relatively simple, while in the future, the conditions for obtaining loans will be tightened.

The speakers shared advice on how to improve the company's liquidity and how to achieve further growth, both with the help of banks and with the help of alternative sources of financing. Alternative sources of financing are not just a lifeline for a company's survival, they are the way to better liquidity and optimal capital structure in the company or the way to expansion and development.