Define the requirement precisely
Funding growth, seasonal working capital, investment, refinancing and a structural cash shortfall are different needs. Each requires a different term, instrument and evidence base.
The amount should be supported by a cash forecast rather than a broad figure intended to cover every possible event.
Organise the evidence
Accounts, debt schedules, tax information, bank statements, receivables, maturities and forecasts should be current and internally consistent.
Differences and exceptional items should be explained before an analyst interprets them without context.
Demonstrate repayment capacity
Forecasts should disclose assumptions, scenarios and sensitivity. The base case should not depend on unsupported sales or margins that conflict with the operating history.
It should also explain which actions management can take if performance deviates from plan.
Negotiate structure, not only price
Term, grace period, amortisation, security, covenants, fees and operating flexibility may matter as much as the interest rate.
Preparation allows offers to be compared on total cost and restrictions, not only the quoted margin.
How this analysis was prepared
Content directed and reviewed by Juan Carlos Martín Gil using the firm’s diagnostic method. It presents general criteria, not invented cases, and does not replace review of a specific transaction or legal, tax, financial or technical advice.