Over the last few weeks, Hazlewoods Corporate Finance teams have been busy assisting clients raising finance, both through the Government schemes and from the ‘usual’ sources.
We are regularly in touch with a cross section of funders, be it the 40 or so banks who are able to access CBILS funding as well as ‘alternative lenders’ and private equity funds.
The process of requesting debt finance from the Government CBILS scheme, which has had some mixed reviews, is really no different to the usual finance raising process. Debt raising can be time consuming and those applying for any type of debt need to be aware that a substantial amount of information will need to be provided to ensure a successful application.
Highlighted below are some key pointers to successfully raising finance:
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Key questions from funders
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What do you need to provide and how can we help?
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What does the business need?
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A table setting out how much you need and how it will be utilised.
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Is the business viable and what will it look like in the future?
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Business plan / investment memorandum, setting out the merits of the business in the short to medium term.
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What does the business look like now?
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Recent statutory accounts, management accounts, and an explanation of the true ‘underlying’ profitability of the business
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Can the business repay its debts?
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Integrated profit and loss, cash flow and balance sheet forecast model.
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Please do not hesitate to contact a member of the team if you wish to discuss raising any type of finance, and how we can help with the application process (leaving you to run your business).