When the time is right, whether it be implementing a long-term plan or the external factors falling in your favour, it may be that the business is in a position to make a step change and bring in a new team or develop a new product.
This structural growth goes beyond the incremental build-up of sales, which can be funded through extending the working capital facility. It might be the difference between hiring a new sales representative and opening an office in an entirely new region.
Such major developments require detailed forecasts and investment analysis to demonstrate how the costs incurred over the next few months will generate an increase in cash and profits in the years ahead. Investment analysis, from the straightforward payback period to more sophisticated measures such as net present value or internal rate of return, will be the starting point for making the case to prospective lenders about the company’s ability to repay the growth finance over a suitable period – usually three to six years.
As with any approach to prospective investors or lenders, the presentation of the case for receiving funds needs to be concise, cogent and comprehensive. Our team has many years’ experience of presenting to credit committees or receiving presentations and has a great understanding of how best to approach the task whilst avoiding pitfalls and maximising the positive impact of the proposal.
There are nearly three hundred lending institutions operating in the UK currently, many of which have small teams who do not have the time to sift through presentations in detail. Therefore, making the right impression immediately is critical to even getting a hearing. Well-developed networks, excellent relationships, technical expertise and strong presentational skills are all important factors in converting that initial interest into a meaningful and attractive offer for funding.