Main Purposes for Using a Loan
On the FinoMark crowdfunding platform, financing can be allocated to various business needs, depending on the nature of the activity and strategic direction. The most common cases include:

Working Capital:
Loans help cover day-to-day expenses – acquiring raw materials, goods, or services, and fulfilling short-term obligations. This is particularly important for companies facing seasonality or temporary working capital shortages.

Growth Investments:
Financing can be directed toward growth projects – purchasing equipment, expanding production, developing new products, or entering new markets. Such investments are often linked to long-term goals and higher future returns.

Marketing and Customer Acquisition:
Borrowed funds can be used for advertising campaigns, expanding the customer base, or increasing brand awareness. This allows growth plans to be implemented more quickly.

Salaries and Taxes:
In some cases, financing helps address temporary obligations – paying wages, taxes, or other essential contributions. These loans are typically granted with the condition that they are used for specific, clearly defined needs.

Debt Refinancing:
The platform also enables borrowing for refinancing existing obligations when the goal is to reduce interest burden or improve liquidity. In such cases, the company's financial stability is evaluated, and additional requirements may apply.

Practical Example:
A furniture manufacturing company operating in Lithuania borrowed €30,000 via FinoMark to purchase new CNC machinery. Within four months, production time was reduced by 25%, and revenue increased by 18%. As a result, the company secured more orders from Scandinavia and became more competitive in the export market.

Limitations and Responsibility
While the platform offers flexible opportunities, there are certain limitations. Loans cannot be used for personal needs, risky, or prohibited activities. FinoMark may also require justification for the use of funds, and investors expect a responsible and transparent approach.

How to Justify Loan Usage?
To build trust and increase the likelihood of receiving funding, it is recommended to:

– Clearly define how the funds will be used – specify amounts, timelines, and expected outcomes.
– Align the loan purpose with the business strategy – show how the financing will contribute to growth or stability.
– Ensure transparency – offer to provide investors with periodic updates on how the funds are being used.

Assessing the Benefits of a Loan
Before borrowing, it is worth identifying the expected benefits – such as revenue growth, cost reduction, improved operational efficiency, or a stronger market position. Such an assessment helps better manage funds and builds trust among investors.

In Summary
On the FinoMark platform, loans are tailored to various business needs – from working capital expenses to strategic investments. The more clearly the purpose is defined, the greater the likelihood of successfully attracting funding. Transparency, responsibility, and purposeful planning are key factors in achieving long-term business success.