Ready, Set, Go! 3 Steps to Secure the Funding you need!

Posted on: July 20th, 2016

It is not always easy to expand your business. It can be even harder to grow using only the assets that you have. This is why many business owners turn to outside funding to help them accomplish their goals.

Here are three important steps to go about getting the funding you need:

Prepare your Financial Records: Financial records should always be reviewed and audited before presenting them to any lender. The audit adds credibility to the financial position and gets the lender to see that you take your financial results seriously. Companies with strong financial records are generally more professional and better managed.
Prepare a Professional Business Plan: Think about what you specifically need money for, how you will use it and what it will lead to in the next 3-5 years. Once you have that, configure it into a professional presentation. A Business plan is an important exercise as it leads to critical thinking and strategic planning. It will lead to better decision making and less mistakes in the long run.
Educate Yourself: The last step is to be knowledgeable. There are many sources of funding and many ways to go about getting them. If you educate yourself on the market and your options, you can save yourself valuable time and money.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.