{"id":16861,"date":"2023-09-21T11:22:12","date_gmt":"2023-09-21T09:22:12","guid":{"rendered":"https:\/\/www.chetwode.fr\/?p=16861"},"modified":"2023-09-21T11:37:24","modified_gmt":"2023-09-21T09:37:24","slug":"why-should-a-small-amount-of-financing-be-treated-differently-from-a-large-amount","status":"publish","type":"post","link":"https:\/\/www.chetwode.fr\/en\/whats-new\/why-should-a-small-amount-of-financing-be-treated-differently-from-a-large-amount\/","title":{"rendered":"Why should a small amount of financing be treated differently from a large amount?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"16861\" class=\"elementor elementor-16861\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d3e4549 elementor-section-height-min-height elementor-section-boxed elementor-section-height-default elementor-section-items-middle\" data-id=\"d3e4549\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-b0b80ee\" data-id=\"b0b80ee\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-e405ab0\" data-id=\"e405ab0\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fb53915 de_scroll_animation_no elementor-widget elementor-widget-heading\" data-id=\"fb53915\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Newsroom<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-6af328e\" data-id=\"6af328e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e019ea3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e019ea3\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-3f37ae9\" data-id=\"3f37ae9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-52cb995 de_scroll_animation_no elementor-widget elementor-widget-heading\" data-id=\"52cb995\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Decoding<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6428b8c de_scroll_animation_no elementor-widget elementor-widget-spacer\" data-id=\"6428b8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4b49d12 de_scroll_animation_no elementor-widget elementor-widget-heading\" data-id=\"4b49d12\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Why should a small amount of financing be treated differently from a large amount?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2683260 de_scroll_animation_no elementor-widget elementor-widget-image\" data-id=\"2683260\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"513\" src=\"https:\/\/www.chetwode.fr\/wp-content\/uploads\/Pourquoi-faut-il-traiter-differemment-un-petit-dun-gros-montant-de-financement--768x513.jpg\" class=\"attachment-medium_large size-medium_large wp-image-16820\" alt=\"Pourquoi faut-il traiter diffe\u0301remment un petit d\u2019un gros montant de financement ?\" srcset=\"https:\/\/www.chetwode.fr\/wp-content\/uploads\/Pourquoi-faut-il-traiter-differemment-un-petit-dun-gros-montant-de-financement--768x513.jpg 768w, https:\/\/www.chetwode.fr\/wp-content\/uploads\/Pourquoi-faut-il-traiter-differemment-un-petit-dun-gros-montant-de-financement--300x200.jpg 300w, https:\/\/www.chetwode.fr\/wp-content\/uploads\/Pourquoi-faut-il-traiter-differemment-un-petit-dun-gros-montant-de-financement--1024x684.jpg 1024w, https:\/\/www.chetwode.fr\/wp-content\/uploads\/Pourquoi-faut-il-traiter-differemment-un-petit-dun-gros-montant-de-financement--1536x1025.jpg 1536w, https:\/\/www.chetwode.fr\/wp-content\/uploads\/Pourquoi-faut-il-traiter-differemment-un-petit-dun-gros-montant-de-financement--2048x1367.jpg 2048w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0850ad8 de_scroll_animation_no elementor-widget elementor-widget-text-editor\" data-id=\"0850ad8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>When it comes to financing a project, the size of the amount to be financed can have a significant impact on the way it is managed. Financing a &#8220;small amount&#8221;, i.e. less than \u20ac3 million, and financing a &#8220;large amount&#8221;, i.e. more than \u20ac3 million, often require different approaches. In this article, we will look at three points where there is a difference in treatment between a small amount and a large amount. Firstly, there is a difference in process time, which means that a simpler and less costly structure needs to be put in place. Finally, we will see that the size of the amount also has an impact on the funder to be involved.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ad2222c de_scroll_animation_no elementor-widget elementor-widget-heading\" data-id=\"ad2222c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">1.\tA difference in processing time for small and large amounts of funding \n\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-2ad4b3e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2ad4b3e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-1648fe2\" data-id=\"1648fe2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bdd4df8 de_scroll_animation_no elementor-widget elementor-widget-text-editor\" data-id=\"bdd4df8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>When it comes to financing a small amount, it&#8217;s often best to opt for quick and efficient solutions. Small-scale projects may require immediate financing to meet urgent needs. In such cases, administrative procedures can be simplified to speed up the financing process. For example, short-term loans or lines of credit may be more suitable for rapid financing.<\/p><p>On the other hand, financing larger amounts often requires more detailed planning and longer stages. Larger amounts generally involve more in-depth financial assessments and risk analyses. Procedures can be more complex and often require the involvement of various stakeholders. It can take time to establish solid partnerships and financing agreements.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e44a2c de_scroll_animation_no elementor-widget elementor-widget-spacer\" data-id=\"4e44a2c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4b22b50 de_scroll_animation_no elementor-widget elementor-widget-heading\" data-id=\"4b22b50\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">2. A difference in structure to support costs <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-71753c3 de_scroll_animation_no elementor-widget elementor-widget-spacer\" data-id=\"71753c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7348a2e de_scroll_animation_no elementor-widget elementor-widget-text-editor\" data-id=\"7348a2e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The financing of a small amount can be managed with a simpler and less costly structure. The administrative costs associated with a small amount can be proportionately higher if the same complex processes and procedures are used as for a large amount. As a result, it is often preferable to adopt lighter, less costly approaches to handling small amounts.<\/p><p>On the other hand, large-scale financing often requires a more robust and complex structure to support the costs. Large-scale projects generally involve greater expenditure and may require long-term financing. This may require more time and the use of financing mechanisms such as trusts, bond issues or syndication. A solid, robust structure is needed to ensure the long-term viability of the project.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5feee4c de_scroll_animation_no elementor-widget elementor-widget-spacer\" data-id=\"5feee4c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-883f547 de_scroll_animation_no elementor-widget elementor-widget-heading\" data-id=\"883f547\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">3.\tA type of funder according to the size of the financing amount\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3ee871e de_scroll_animation_no elementor-widget elementor-widget-text-editor\" data-id=\"3ee871e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Different amounts of funding often attract different types of funder.<\/p><p>For small amounts, it is common to turn to more informal sources of finance, such as family loans or personal investments. Some banks also have divisions dedicated to smaller-scale financing, with tailored and reduced analytical approaches. Businesses can approach their bank as an existing customer, and the terms are often attractive.<\/p><p>Small businesses can also benefit from participative financing or microcredit. Such financiers take a statistical risk approach, assuming that the greater the number of financing lines allocated, the more diversified their risk.<\/p><p>On the other hand, larger amounts often require the involvement of institutional financiers, such as banks, investment funds or government bodies. These funders are able to mobilise greater financial resources to support large-scale projects. Before committing to financing this type of large-scale project, funders generally require more in-depth guarantees and assessments, analysing applications on a case-by-case basis without pooling risk or taking a granular approach.<\/p><p>It is therefore crucial to treat the financing of a small amount differently to that of a large amount. Small amounts often require quick and light approaches to meet urgent needs, whereas large amounts require in-depth planning and a solid structure to support the associated costs. In addition, the types of funders involved often differ depending on the size of the amount to be financed. At Chetwode, we understand these differences and work with companies to tailor the funding strategy accordingly, so that we can find the most appropriate funding on the best terms for the business.<\/p><p>Finally, it should also be noted that if a need for a small amount recurs on a regular basis, there is the possibility with <a href=\"https:\/\/www.chetwode.fr\/en\/whats-new\/why-vendor-financing-can-be-a-real-financial-solution-for-manufacturers-launch-of-the-chetwode-360-subsidiary\/\" target=\"_blank\" rel=\"noopener\">Chetwode 360<\/a> of setting up a financing programme.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-d053e0c vertical-line-divider\" data-id=\"d053e0c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-461b194 de_scroll_animation_no elementor-widget elementor-widget-spacer\" data-id=\"461b194\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-ad98b7d\" data-id=\"ad98b7d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a6f3a3b ekit-equal-height-disable de_scroll_animation_no elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"a6f3a3b\" 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elementor-element elementor-element-47d11c29 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"47d11c29\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-53297d1f\" data-id=\"53297d1f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3b49dc9c de_scroll_animation_no elementor-widget elementor-widget-image\" data-id=\"3b49dc9c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/www.chetwode.fr\/wp-content\/uploads\/Julien-Dufour-1-300x300.jpeg\" class=\"attachment-medium size-medium wp-image-16835\" alt=\"Julien Dufour\" srcset=\"https:\/\/www.chetwode.fr\/wp-content\/uploads\/Julien-Dufour-1-300x300.jpeg 300w, https:\/\/www.chetwode.fr\/wp-content\/uploads\/Julien-Dufour-1-150x150.jpeg 150w, https:\/\/www.chetwode.fr\/wp-content\/uploads\/Julien-Dufour-1.jpeg 400w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-574677c2\" data-id=\"574677c2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3a9e81c4 de_scroll_animation_no elementor-widget elementor-widget-text-editor\" data-id=\"3a9e81c4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>This article was written by <a href=\"https:\/\/www.linkedin.com\/in\/julien--dufour\/?originalSubdomain=fr\" target=\"_blank\" rel=\"noopener\">Julien Dufour<\/a> during his internship at Chetwode as an assistant account manager and MSc Finance, Investment &amp; Wealth Management student at NEOMA BS. He was also a CFA Level I candidate.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-5255e57\" data-id=\"5255e57\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-1f4ba02\" data-id=\"1f4ba02\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7932801 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7932801\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a971372\" data-id=\"a971372\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>When it comes to financing a project, the size of the amount to be financed can have a significant impact on the way it is managed.<\/p>\n","protected":false},"author":6,"featured_media":16819,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[39,24],"tags":[51],"class_list":["post-16861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asset-financing","category-whats-new","tag-decoding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why should a small amount of financing be treated differently from a large amount?<\/title>\n<meta name=\"description\" content=\"Find out in this article why you should treat a small amount of financing differently from a large amount.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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