3 minMeeting the complex challenges facing entrepreneurs today
Faced with a proliferation of crises and rapid changes in every sector, entrepreneurs need to be able to rely on a close banking partner that can support them in a variety of areas. Banque de Luxembourg has cultivated these qualities over many decades, offering a wide range of services to meet the professional and private needs of this particular client group.
Family businesses make up a large part of the economic fabric in Luxembourg. This reflects the situation in Europe, where they generate over 70% of the continent's wealth. It is therefore not surprising that private banks place entrepreneurs at the heart of their concerns. However, providing the right service to entrepreneurs is a delicate undertaking, given the complexity of their wealth and their requirements, which are often a mixture of personal and business concerns.
Needs that vary at every stage
To deal with this complexity, Banque de Luxembourg adopts a proactive approach that revolves around listening to clients and having regular dialogue with them to gain a thorough understanding of the problems they face. Four main services are offered, based on the short, medium and long term: project financing (investment loan, overdraft facility, leasing and bank guarantees); the management of cash surpluses; the day-to-day management of the business; and support for families in the various phases of transferring the business.
Obviously, entrepreneurs will need different services at the different stages of their life. "Some companies find they need to modernise their production facilities and have to invest. We help them do this by structuring the necessary financing and finding the best solution to ensure the future development of their business," explains Charles Sunnen, adviser in charge of coordinating Banque de Luxembourg's Business & Entrepreneurs division.
Developing a business may entail long-term investments, in particular to expand or modernise operational real estate, to buy or maintain vehicles and machinery, or to buy back shares internally or externally. For these various projects, which are part of the operational and shareholder side of the business, Banque de Luxembourg also proposes the right financing solutions for each of its clients.
Support to deal with the current crises
The current context also calls for shorter-term measures, which many companies have resorted to in recent years. "The energy crisis, rising costs of materials, labour shortages, late payments etc. are all elements that can put a lot of pressure on a company’s liquidity. We pride ourselves on reacting promptly to cover the temporary needs of businesses at this level," says the Banque de Luxembourg adviser.
Banque de Luxembourg's Businesses & Entrepreneurs division is not only concerned with the business needs of its clients, but also serves their private wealth needs. “We work hand in hand with our private banking colleagues on a daily basis to meet a range of demands, fully appreciating that some entrepreneurs prefer to deal with a single adviser to manage all their needs," explains Charles Sunnen. “We have to be able to respond to all the entrepreneur's demands. To do this, we suggest tailor-made solutions to help them find the best solution, always acting in the interest of their personal wealth and business assets.”
Banque de Luxembourg has a Business & Entrepreneurs team of around 20 staff. "Our advisory approach consists of combining the specialist skills available within our Bank with those of our external partners, the entrepreneur and their company," concludes Charles Sunnen.
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