How to control risks in this type of operation?

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Among the main risks within an investment strategy based on financial leverage are:

have expenses greater than income;
not making payments related to the credit contracted;
make the company less attractive to future investors.
Before making the decision to use leverage, it is essential to consider some macedonia phone number list to more accurately assess the risks to which the company will be exposed. Therefore, take into account:

the current level of debt;
the interest charged;
the profit you want to achieve.
There are some alternatives for those who plan to invest, but do not want to take on debt to conduct the operation or see the interest rates charged as an obstacle to doing so: it is common for companies interested in expanding their activities to sell assets or divide the business capital by issuing shares on the financial market.

This process is called an IPO (Initial Public Offering) and transforms the company into a Public Limited Company (S/A) with shares traded on the stock exchange. If this move is successful as expected with good planning , a considerable amount of resources is injected directly into the company's cash flow.

However, it is worth noting that, from the moment a company goes public, it must constantly report to its shareholders and share part of its profits with them, otherwise the company's shares risk losing value. When this happens, the company becomes less attractive to other investors and its market value falls.

Considering all this, with a careful analysis of all risks and within careful planning, financial leverage is an interesting instrument for the growth of a business, without compromising its financial health in the medium and long term.