In the context of a good plan, the utilization of debt instruments can be prudent.
We begin with an assessment of need and the best possible sources for funding, followed by the creating of a presentation and introductions and negotiations with potential funding sources.
In a changing environment, Cathedral works to facilitate the funding of the business for growth or current operational needs. Sources might include banks, investors, angels, or a variety of asset-based lenders.
In general, Cathedral utilizes the following approach in the financing process:
- Assess the amount of funds needed and that it will lead to a self-sustaining business
- Determine the most appropriate source of funds
- Evaluate the preparedness of the company to approach funding sources
- Determine adequate cash flow for repayment or adequate ROI
- Prepare and Package:
- Create an information package that is appropriate to the funding source
- Identify potential funder(s)
- Present the financing package to the funder(s)
- Follow up with funder(s)
- Negotiate and Close.
- Design Term Sheet or review bank applications
- Close the transaction
Case Study: Cathedral worked with a buyer to negotiate the purchase of a professional services firm and simultaneously secure the funding to complete the acquisition. A financial model was vital to demonstrate adequate ROI to the investor.
Contact us today to explore financing for your business.