Credit & Financial Services
Every business needs a credit, either because it requires working capital which will provide it with the flexibility and the ability to make “ad hoc” very profitable business decisions or as a part of a long-term Financial strategy.
98% of the businesses in Israel are SME’s who require credit in order to manage their working capital, pay vendors and finance the period until they collect from customers.
If the business has enough working capital either from its own equity or from external funding sources such as credit from the bank – the business can work with larger funding and payment periods, finance larger projects and be able to cope with unexpected Financial difficulties.
Financial lenders such as bank and external credit lenders require guarantees and also explanations on how the capital is to be used in order to assess the risk and determine the cost of capital to insure the profitability of the lending/financial transaction.
On top of banks and other Financial lenders the State Of Israel has several plans to assist businesses in several instruments structured to fit the current business need or the specific stage of the business evolution. This plan is a loan under the state guarantee offered by Bank Leumi, Bank Mizrahi-Tefahot, Bank Otsar Ha-Hayal, and Mercantile Discount Bank.
Similar plan is also offered by the Poalim Bank.
Both offer up to 500,000 NIS for starting businesses or for funding infrastructure for businesses or for funding the working capital periods and finance the period between paying vendors and collecting from customers and up to 8% from the turn over and up to 8 M/NIS for business with over 6.25 Million NIS per year.
Both offer a grace period during which the business pays for the interest only and starts returning the principal after 6 months or a year and the entire loan is returned over 5 years period in PRIME plus 3-4 depends on the bank.
We assist in reviewing the business Financial structure, obligo with banks, cost of capital and in planning the credit required and once defined – achieving it for our clients.
We also assist startup companies with non-diluting funding (NDF) from the Israeli Innovation Authority for between 200,000 NIS to 10,000,000 grants for innovative projects under Ideation (Tnufa) Incentive Program and Early Stage Companies Incentive Program.
The Ideation (Tnufa) Incentive Program is designed for fledgling entrepreneurs to develop and validate innovative technological concepts.
The Early Stage Incentive Program is designed for startup companies seeking to develop and promote an innovative technological project, as well as penetrate the market by raising investments from the private sector. The program offers preferred incentives to minorities and Ultra-Orthodox entrepreneurs.