Some of the key issues you must consider
Finding the right debt/equity balance and raising debt on attractive terms is increasingly complex – key issues to consider include:
- Is your business plan and the associated financing well documented ?
- Do you have a clear view of your debt capacity when considering the projected future development of the company ?
- Are you aware of the available debt instruments and do you have a clear view of what a competitive price for each debt intrument is ?
- What is your capacity for repaying debt and what is the right debt/equity structure ?
- What security can you provide the banks and how should they think about the risks associated with your business ?
- What banks do you know and do you have a ”plan B” in a negative scenario ?
- How should you structure the ”waterfall” in an exit scenario ?
- What asset security can you provide the banks and how should they think about the risks associated with your business ?