SALVAVIDAS II PERIODO

Cycle 1

1. Make a summary chart of the history of banks showing: Time period, responsible and contribution to the development of banking industry.

Cycle 2

1. Choose a company or business that you are familiar with and describe how do you imagine that this company or business makes decisions in terms of funding, investment, debt and leveraging.

Cycle 3

Funding sources

In Colombia, the financial system is split into two "neighborhoods."

• • The Banking Market (Intermediated): Where you deal with a middleman (the Bank) who decides if you get the money.

  • The Value Market (Disintermediated): Where you deal directly with investors by issuing "values" (stocks or bonds).

And inside of them, the main available alternatives for funding are: 

• Commercial Banks: Great for general loans and credit cards. Ideal for businesses that are already running and have a "Superavit" (extra money) sometimes.

• Financial Corporations: These are the "Big Project" experts. They don't just lend money; they often invest in the company’s capital to help it grow long-term.

• Commercial Financing Companies: The "Equipment" specialists. If a business needs a truck or a specialized machine (Leasing), these are the go-to experts.

• The Stock Market (BVC): For large companies that want to speak directly to the public to raise massive amounts of money without a bank in the middle.  

Every funding source is a bridge between someone with a Surplus (extra money) and someone with a Deficit (a project that needs money). The most "advantageous" source is the one that understands your particular features. A bakery shouldn't go to the stock market, and a solar energy giant shouldn't just rely on a credit card. Remind that in Colombia, the Superintendencia Financiera is the "Referee" of this game. No matter which source they choose, the referee makes sure the rules of the Ley 1328 are followed so that both the entrepreneur and the investor are protected.

1. Think about one example of business or company in the Colombian economy that would benefit the most from each of the explained funding sources. (Four examples altogether).