1. Home
  2. |
  3. Connected Capital Blog
  4. |
  5. How Alternative Capital Can…

How Alternative Capital Can Bolster Businesses Against Macroeconomic Headwinds

The global economic landscape faces a triple threat: supply chain disruptions, rising inflation, and operational inefficiencies. These factors are squeezing businesses from all sides, making efficient working capital management more critical than ever.

Traditional Working Capital: Falling Short in Turbulent Times

Many businesses rely on traditional working capital solutions, but these methods often fall short in today’s environment. Traditional approaches can be:

  • Fragmented: A patchwork of solutions from different vendors, leading to complexity and inefficiencies.
  • Reactive: Focused on addressing immediate liquidity needs rather than proactively optimizing working capital for growth.
  • Limited Control: Businesses lack control over the financing process, relying on external partners for decisions.

The Answer is Alternative Capital

Alternative capital solutions offer a powerful and flexible alternative, empowering businesses to navigate economic challenges and seize growth opportunities. Here’s how:

  • Connected Capital: Bridges the gap between alternative and traditional financing,  allowing you to leverage the best of both worlds: alternative capital’s flexibility and speed while seamlessly integrating with your existing banking relationships.
  • Holistic Approach: Alternative capital providers take a comprehensive view of your working capital needs, crafting a customized solution that aligns with your overall business goals.
  • Strategic Focus: Working capital should be a strategic driver of growth, not just a short-term fix.
  • Control & Flexibility: Unlike traditional lenders, partners that manage their own funding vehicle can allow for same-day credit decisions, broader risk coverage, and program structures tailored to your unique needs.

Alternative Capital Differentiators:

  • Program Flexibility: A highly configurable approach, allowing you to create a working capital program structure that is agile and aligns with your business strategy. 
  • Speed to Capital: Control over a funding vehicle allows for faster access to capital, eliminating delays and fueling your business momentum.
  • Risk-Adjusted Financing: Providing the broadest funding coverage across geographies, segments and customer profiles.
  • Enhanced Credit Capacity: Larger credit capacity to support and scale your growth ambitions.

In today’s economic environment, alternative capital solutions provide a powerful tool for businesses to navigate challenges and achieve sustainable growth. By offering greater control, flexibility, and speed, alternative capital empowers organizations to weather the storm and unlock their full potential.