Envirogreen assists in the preparation of plans and applications for banks and non-bank financial institutions for businesses after operating in the field for many years and therefore can assist in promoting educated decisions and their implementation.
Preparing an application for financing and checking the feasibility of financing is aimed at determining whether the external financing endangers the business or enables growth.

Businesses and companies are faced with the dilemma of whether to borrow money from external sources or invest in their capital. Each type of financing expresses a different level of risk.
At the definition level, there is a difference between internal and external risk interest. Internal risk interest is the risk level of the enterprise and/or shareholders and/or company and external risk interest is determined based on market prices of financial institutions.
It is common to think that investments in the business’s equity is at a lower risk level compared to external financing, but it depends on the level of risk and usually this is not the case.

On the other hand, investing in equity through investors may change the core of control in the company. Therefore, it is important to keep in mind that risk arising from equity has a relatively high cost for existing shareholders, in contrast to taking an external loan that does not change the capital structure.

In addition, there is a difference between financial investors who are meant to meet financing needs and strategic investors who have a market presence or other added values that contribute beyond financing.
In terms of financial loans, the financial institutions check the state of the business as of a certain date and usually decide according to the business financial data and expectations regarding the industry, whether to approve or not.

Also, in terms of investors (equity), a similar procedure is carried out, but the examination process considers specific elements of each investor and the extent to which it is suitable for the requirements of the business.

A professional examination of future cash flow in different scenarios (sensitivity tests), will determine the risk level of the business, both for financial institutions (financial loans = external capital) and for investors (equity).


יועץ עסקי - Envirogreen

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