If you’re an entrepreneur, you’ve probably wondered at least once how you can finance the renovation of your office, how you can get money to build a bigger warehouse or buy a new production line. Even though in 95% of the time the most convenient way is to take out a bank loan when you want to finance an investment, you  can finance your long-term investments through stock market investments.

On October 10, 2023, we have delivered a presentation for RBL – Romanian Business Leaders Association in Cluj, about how a company can finance its long-term investments through stock market investments.  The meeting was hosted by the Faculty of Economics and Business Administration, Babeș-Bolyai University.

During this meeting, we have offered details about how corporate investing works and which are the benefits of financing long term investments while using the opportunities provided by the stock market. The concept of corporate investing involves earning returns on the invested resources in order to cover future expenses or investments and is mainly dedicated to mature businesses with a steady cash flow and a well-defined long-term investment strategy.

In short, if your business is not seasonal or cyclical and generates a steady cash surplus every month or quarter, you can start investing some of your money in various financial instruments.

Before starting to invest it is extremely important to understand the following aspects:

1. The importance of  risk diversification – money invested only in your own company versus money invested in several companies
2. Capital planning – short term capital needs versus long term planning and investments
3. Choosing the right financial instruments based on you company profile and liquidity needs, in order to reach your long term investing goal

ENDS

For further information on this topic, please contact:
Carpathia Investing Club
invest@carpathiainvestingclub.org
www.carpathiainevstingclub.org | Cluj-Napoca, Romania, 400680

Please do not consider this article as investing, financial, legal or tax advice. The articles on the website present information of general nature. The content of the website is for educational and informational purpose only. 

About Carpathia Investing Club

Carpathia Investing Club (CIC) was founded in 2021. The club is dedicated to support individuals all around the world to better understand and apply investing principles. For first time retail investors, the club’s activity is based on a combined educational and practical approach that emphasizes the need of a proper understanding of the basic principles that govern the stock market before starting to invest. For more experienced retail investors and institutional investors, the club works as a forum that offers the opportunity to discuss and analyze various investment opportunities private and public companies.