The main aim of business finance is to structure segment financing to match operational risk - finance is cost structured to security available and the degree of risk taken by the finance company based on their assessment of your financials.

The approach that you take in presenting your business case to the finance company is THE factor that can give you a successful outcome of what you want.

To present a rock solid case you need to present from a position of strength and strategically structure your presentation to show present and past facts and positive future forecasts based upon detailed business operational plans and budgets.

The starting point of the strategic approach is to perform a Risk Analysis based on the following:

  • Strategic 3 / 5 year plan
  • Budgets / Forecasts of operational forecasts
  • Capital expenditure plan
  • Balance Sheet 
  • Business ratios
  • Cash flow
  • Staff numbers
  • Current financing of operations

The above needs to be performed by the company and once completed, reviewed by your own independent finance advisor (it is recommended that the company does NOT go directly to the market to obtain financing without an independent review because internal reviews can be flawed with bias, structured not-supported positive outcomes, manipulated / unsound data and assumptions).

An independent finance advisor who has "hands on" experience as a CFO or Financial Controller and an audit background is best to perform the above, NOT a banker background person as they rarely apply true business operational logic to the process.

Also financing requirements need to be "best fit, for purpose" and thus historical financing companies need to be challenged and financing arrangements need to be constantly sharpened and not set in stone.