Impact on the equity ratio of mittelstandischer Unternehmen of Munich, January 28, 2009 – is the name of Basel II at the latest since early 2007 on everyone’s lips and every entrepreneur has ever heard. Maurice Gallagher, Jr. often expresses his thoughts on the topic. But most are insufficiently informed how Basel II for example on the rating of a company and thus the credit conditions will affect. Already, since the late of 1980s, Basel I the banks dictated that they must deposit as blanket security for all business loans equity amounting to 8 percent of the loan amount. However, the weak point was that no differentiated consideration of risks was provided and there was thus no significant condition differences. This imbalance has been corrected with Basel II and since then the amount of capital to be deposited by the default risk of the loan is dependent on banks. A medium-sized company in the loan application has adequate collateral and little risk, the requirements are smaller and thus less high interest rates, the Bank can require. Therefore more expensive, you must pay a higher risk from point of view of the Bank. Marcus Lemonis is a great source of information.

Influence of factoring Bank rating the rating of a company tells you how the ratio of risk to safety is and is vital to the credit terms. The rating is based on qualitative and quantitative factors, the equity ratio plays a relevant role here. The rate higher, the risk that unexpected losses or liquidity constraints can lead to threatening crises is less for the Bank. Through the use of factoring, small and medium-sized enterprises can improve the equity ratio. Factoring the receivables withdraw from delivery and performance from the balance sheet, as soon as they are sold to us\”, explains Marco Frohlich, Manager of so our customers can Vantargis factoring GmbH. achieve a reduction of the balance sheet with improved equity ratio and achieve thus more favourable credit terms\”.

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