Sources of Capital for Business

Bank credit tightening makes it necessary to look for alternate private capital financing sources.

Thursday, May 21, 2009


©image: Nic McPhee

In the Elfinancierocr.com blog article "En numerous," Edgar Delgado Montoya outlined five options as a source of financing for both start ups and business expansion projects: Emerge Fund, Link Investment Caseif II, E + Co LAC, and E3 Corp.

Delgado Montoya said: "In addition to delving into very different sectors, investment banking operations are quite flexible as to how the manner in which resources can be administered to the receiving enterprise."

More on this topic

Alternative financing options for the private sector

October 2008

In times of credit crunch from the usual sources, it is appropriate to remember that there are other alternatives for financing projects.

The Andean Development Corporation (CAF), the International Finance Corporation (IFC) of the World Bank, the Inter-American Investment Corporation (IIC) of the IDB, and the Central American Economic Integration Bank (BCIE) are all sources of financing for high impact development projects by the private sector which are highly unused by our bankers and businesses.

The Credit Situation in El Salvador

February 2009

An analysis of the changes in the dynamics of granting credit, in an interview with the Superintendent of the Salvadorian Financial System.

Luis Armando Montenegro, Superintendent of the Financial System, in an interview published in La Prensa Gráfica, responds to questions about the liquidity of the Salvadorian financial system, the contraction of external credit to the local banking system, changes in the granting of loans, and interest rates, among other issues.

Designation of $500 million in El Salvador still undefined.

December 2008

The system of designation for the IDB loan of $500 million is still under discussion by the authorities of the Central Reserve Bank.

The president of the institution, Luz Maria de Portillo, said that the Board of Directors is still dealing with the matter.

Meanwhile, the productive sectors have expressed their expectation that the funds will be channeled as soon as possible since the funds will help to inject capital into the local economy and to reinvigorate it.

Credit and the responsibility of the banks

January 2009

It is indispensable for the economy to continue using credit to finance production and commercial operations.

The analysis by Raul Moreira published in the La Estrella in Panama emphasizes that "the demand for internal credit by the private sector was at $31.6 billion in October and continued to grow at 20.38%, while deposits had an increase of 24.69%, which shows that the main source of financing for the expansion of credit comes from domestic savings by individuals. Prudence and caution is recommended for credit policies and it is important to maintain the rhythm of capturing funding."

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