Credits and Bank Guarantee Letters in Entrepreneurship Development During Crisis

When the credit crisis started in 2008, a total of 67 entrepreneurs sought advice with the European Centre of Managerial Studies in Business Administration of the Spiru Haret University in Bucharest in order to find alternatives to finance classic loans that could enable them perform their activity. Based on these requirements, the paper aims to identify the impact of the crediting and guarantee instruments employed by entrepreneurs upon the economic-financial indicators and the cash flow. This approach is helpful in the entrepreneurs-banks relationships framework so that the best banking instruments be used in the process of entrepreneurship development within a changing business environment. To achieve the research there were identified, from those who sought advice, 43 entrepreneurs active in manufacturing due to the complexity of the crediting and guarantee instruments used in this field. Data collection and processing has resulted in the determination of cash flow and calculation of the main financial indicators for a five year time interval, indicators that are used by banks in relation to credited or secured entrepreneurs. The main results indicate that entrepreneurs who have secured business through letters of guarantee recorded positive cash flows and a better situation of the main economic and financial indicators with positive effects on their relationship with the business community