Financing bottlenecks for businesses
According to the online economy report; Seyed Jalal Sidi, referring to the bank-centeredness of Iran’s economic system and the maximum absorption of resources through banks, said: According to the reports, currently the bank’s role in financing companies is much stronger than the capital market, and most of the financing is provided by banks, but at the same time, during the last decade, financing through the capital market has increased from about 3 to 4 percent to about 9 percent, which indicates the high capacity of the capital market and the acceptance of private and non-stock companies in this period. Due to the limited resources, financing should be allocated to projects with more economic added value and more careful attention should be paid to the categories of risk and return. It is worth mentioning that in the financing provided by the banking system, sometimes the resources were not allocated to appropriate projects or a significant part of the credits defaulted and caused many problems for the economy and society. This is despite the fact that there is no order financing in the capital market and requests are checked by experts. On the other hand, there are many and intense supervisions before and during the attraction of resources and even how they are spent by different institutions. This has made resources to be used more efficiently and effectively in addition to reducing the risk of credit defaults.
He considered the assessment of the situation of companies and projects that need liquidity to be important in choosing the type of financing method and stated: when companies go for debt or equity-based financing depends on a series of conditions, including the presence or absence of the company in the stock market, the rate The return of the project depends on the interest rate, the level of access to the investor, the capital structure, the risk of the project, etc., and it is never possible to consider the same conditions for a group of companies or projects and give a predetermined answer to the question of which method of financing. (based on debt or equity) and which instrument is in the best interest of the company and its owners. Also, in some cases, the length of the equity-based financing process, structural and legal problems have caused the only financing solution to be the use of debt instruments, and companies have moved towards debt-based financing.
Sidi pointed out the prominent role of debt-based financing compared to equity-based financing in the capital market over the past few years and attributed it to the ease of these methods, the change in the attitude of the government, facilitation and reduction of some bureaucracies, and added: Murabahah bonds As the most common type of Sukuk bonds in Iran and other Islamic countries, as well as other types of bonds such as lease bonds, construction bonds, Istisnaa bonds, partnership bonds, interest bonds, etc., it has played a significant role in financing companies.
He further explained the conditions of stock-based financing for listed and non-listed companies and added: stock-based financing is accepted and offered in the Tehran Stock Exchange or over-the-counter and capital increase from cash or current claims. . Stock or over-the-counter companies can provide the financial resources they need through the sale of a part of the previously issued shares or capital increase from the place of cash contribution or preemption. It should be mentioned that the capital increase is done with the purpose of financing from the place, the current claims or the accumulated profit, which causes cash to enter or prevent its exit from the company. Companies that have not been accepted and offered in the Tehran Stock Exchange or O-Exchange, have submitted their application and documents to the Tehran Stock Exchange or O-Exchange through a financial institution licensed as an admission consultant, such as licensed brokers such as Eindho Bank Brokerage, which finally The acceptance of the stock exchange organization is discussed. Currently, the supply and acceptance process is very long and sometimes takes more than 20 months. After the acceptance, the companies obtain suitable financial resources and benefit from the conditions of financing based on shares in the first stage of offering their shares in the capital market. It is also noted that things like tax exemption, increasing information transparency, reducing risk, better recognition and introduction of the company to the society and stakeholders, separation of ownership from management, improvement of the corporate governance system, ease of transfer of shares, the ability to verify shares with minimum Cost and time consumption, company valuation, ease of using banking facilities, increasing internal and external credit are the main advantages of companies’ presence in the capital market.
According to the proof of historical data, Sidi considered the acceptance of companies in the capital market as a turning point for the company and further said: the majority of companies accepted in the capital market, after a short period of stock offering, which includes the initial and emotional fluctuations of stock trading, is a witness The increase in financial value and productivity is mainly due to the presence in the structured and systematic market, the capital market. Participation in the capital market will be done according to the conditions and status of companies in Tehran Stock Exchange or Farabus. Due to its existence, the over-the-counter market, in comparison to the stock market, takes advantage of the facilitating rules and structure, in order to provide the process of acceptance and supply of shares at a higher speed and for a wider range of companies. Therefore, Farabous markets are divided into 6 categories: the first market, the second market, the agreement market, the third market, the market of financial instruments and the innovative market, so that the majority of active businesses in the country can take advantage of the conditions of being able to participate in the capital market and benefit from its benefits. Have. Choosing the most suitable market as the primary destination of the applicant companies is a judgment that is suggested in the first stage based on the rules and regulations and in the next stage based on experience and technical knowledge by the supply and acceptance consultants and is done after the approval of the members of the admission board.
The vice president of financial services of Aindeh Bank Brokerage listed the use of new financial tools as other financing solutions and reminded: companies that do not have the conditions to be admitted to the stock market and issue bonds can use tools such as private investment fund (PE), venture capital fund. VC) and crowdfunding (crowdfunding) to finance themselves. By using these tools, financial institutions attract resources under the supervision of the stock exchange organization and allocate them to the applicant companies through the necessary investigations. Private investment funds provide financing through the purchase of shares and acquisition of investable companies and then transfer their shares after a short-term holding period. What kind of investments a PE fund focuses on depends on the investment strategies of the fund manager. In private funds, investor partners generally provide a major part of private funds’ capital. Public and private pension funds, insurances, charities, banks, wealthy individuals and super funds are among the partners that contribute to private funds. Venture capital funds (VC) are a type of investment funds that invest in newly established and knowledge-based companies with high operational risk. In crowdfunding, the financial resources needed by small and medium businesses are collected from micro capitals. This collective participation is carried out through the platforms of agents with a collective financing license from the OSE and the Securities and Exchange Organization. Also, this type of financing has a high yield and risk for investors.
In the end, he emphasized: financing methods are very diverse and the choice of each method is considered according to the situation and needs of the company. What is of great importance in the financing process is the selection of a professional, experienced and committed consultant who can provide the necessary advice in the shortest possible time and at the lowest cost to provide the financial resources needed by the company.
Using the technical knowledge and successful experiences of the specialized financing team members, Future Bank Brokerage has been able to provide conditions for the applicant companies to receive the most efficient and up-to-date specialized consultations in the field of growing and promoting their business with the greatest confidence and the lowest cost. to use The acceptance and successful offering of Pertobar company shares across the Persian Gulf with the symbol “Heparto” in October of this year as the latest successful project of Aindeh Bank brokerage in the field of financing has confirmed that after many ups and downs in the shadow of professional and principled advice It reached a favorable result and it has caused more synergy for the applicant company, the capital market and the brokerage of Aindeh Bank in combination.