MonthFebruary 2019

Business loan: still falling for a while?


Italian companies are reckoning with a still falling loan disbursement.

The latest financial statements released yesterday by the Bank of Italy indicate that, in July 2013, loans to SMEs show a tendential contraction similar to that recorded in June. In essence, the difficulties for the ‘access to loan by companies do not increase, but continue to persist. And it is a natural factor, which depends on the price in terms of suffering and substandard loans that banks are still paying for the most acute phase of the economic crisis, the one we are leaving behind.

while the bankleading superindex signals for the fourth consecutive month that a positive change is coming for the Italian economy, loan data still shows a decline in disbursements, even if, for company loans alone, the fall seems stop. It is also known that loan data always show the trend of the real economy with a lag: on the balance sheets of banks, the effects of the past economic situation continue to weigh, in the form of non-performing loans: their growth rate, without the correction for the securitization, but taking into account the statistical discontinuity, explains Bankitalia, it was equal to 22.9% in July, while in June it was 21.9%.

Business Expenses or Loans: What are Advertising Costs?

Each company relies on adequate advertising to appropriately present and market itself and its products or services. As a result, the so-called advertising costs arise. From a tax point of view, these always fall under the operating expenses. This reduces the profit. In addition, companies are reimbursed the listed sales tax as input tax. Advertising costs must not be confused with the income tax- relevant advertising costs.


General definition

General definition

Basically, the advertising costs include the entire cost of advertising. These include preparation and concept development, use of funds and appropriate control measures.

It does not matter whether the expenses are incurred in-house or in a specially commissioned third-party company. It also includes staff costs, material expenses and overhead costs for an existing advertising department.


Possible advertising media

Possible advertising media

Companies can access a variety of advertising materials. The use of business cards is widespread everywhere. They are regarded as a figurehead and occur in daily business life.

Accessories printed with the company logo, such as ballpoint pens or notepads, are often used as giveaways. Flyers and brochures draw attention to a company, a product range or the service offered.

It makes sense to buy all the promotional items from the same provider in order to save time and thus personnel costs. This guarantees a uniform look and consistent quality of the products – a factor that should not be underestimated in the area of ‚Äč‚Äčadvertising media.

The online printing company offers a large assortment of such advertising materials. Online ordering has the advantage of being able to do everything conveniently from the office.

The acquisition of customers also includes spots on the radio or television as well as a website. Even the entries in directories and newspaper advertisements fall under the advertising costs.


Sponsorship as advertising costs

Sponsorship as advertising costs

Benefits in the form of money or assets that go to clubs or charitable organizations can also be treated as deductible advertising costs. However, the prerequisite is a consideration that the company receives.

This would be possible, for example, the public naming of the company or the hanging of company posters or banners. This is different from a normal donation.


Expenses for the use of advertising material

Expenses for the use of advertising material

In addition to the actual production of certain advertising media further expenses for the use may arise.

These include postage costs for the dispatch of advertising letters or catalogs, rents for columns or walls on which posters are affixed, as well as fees for the broadcasting of commercials. These amounts are also part of the advertising costs.