Sila FinanceSila International Advisory
The serviceQuestions and answersLaboratoryReference guideContactAsk a question
All questionsQuestion and answer

What is the concrete difference with a conventional bank credit?

In a conventional credit, you repay capital and pay interest calculated on the outstanding capital. The cost varies with the term and, in some contracts, with a market index.

In financing structured through risk sharing, the cost takes another form. If it is a purchase-and-resale operation, the funder's margin is fixed at signing and no longer moves, even in the event of a late payment. If it is an equity contribution, the capital provider's return depends on the company's results, up or down.

The most visible practical consequence is the predictability of the total cost and the absence of penalties indexed to time.

Your case is different

This answer is general. For an analysis suited to your company, ask your question to the firm: the first answer is free of charge, within under 24 hours.

Other questions