Many businesses arrange finance one transaction at a time.
A truck today. Equipment next quarter. A property loan later. An overdraft as working capital needs grow.
Each facility may have made sense when it was established.
But does the combined structure still support the business you have today—and the business you want to build?
As borrowing grows, interest, repayments and security commitments can have an increasing influence on cash flow and your capacity to fund the next opportunity.
A worthwhile review goes beyond comparing interest rates.
Match Funding To Its Purpose
Consider whether loan terms suit the useful life of the asset and the cash flow it generates. Short repayment periods can place pressure on otherwise productive investments.
Understand The Full Cost
Assess interest, fees, residual payments and refinancing costs together. A lower headline rate may not deliver the best overall outcome.
Review Your Security Commitments
Know which assets secure each facility, where guarantees apply and how those arrangements could affect future borrowing or asset sales.
Test Repayment Capacity
Model quieter trading periods, slower customer payments and changes in borrowing costs. Identify pressure points before they become urgent.
Preserve Capacity For The Next Opportunity
Consider upcoming equipment replacements, expansion plans and working capital needs alongside existing commitments.
Put the numbers in perspective
On a constant $2 million debt balance, a 0.50 percentage-point difference in interest cost represents approximately $10,000 a year, before fees and changes in the loan balance.
The repayment profile and security structure deserve just as much attention.
Your funding arrangements should evolve as your business evolves.
At Advanced Finance Group, I combine a Chartered Accountant’s commercial perspective with lending expertise to assess how your funding supports profitability, cash flow and growth.
If your borrowing has accumulated across several facilities, let’s review the whole picture—and identify where the structure could work better for your business.
André Barkhuizen CA
Advanced Finance Group
I help business owners make better decisions about growth, capital and funding.
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