FUNDING | What Is Really Limiting Your Borrowing Capacity?

Your business is profitable. You have assets. You see an opportunity to grow.

So why is securing funding proving difficult?

Borrowing capacity depends on how your financial position stacks up against a lender’s assessment—and how clearly your application demonstrates it.

Common constraints include:

▪ Cash flow: Profit does not always translate into cash available to meet repayments.

▪ Existing commitments: Short repayment terms, credit limits and other debts can reduce capacity.

▪ Loan structure: Funding long-term assets with short-term facilities can place unnecessary pressure on cash flow.

▪ Security: Available equity helps, but lenders also assess the asset, its value and the proposed lending terms.

▪ Financial information: Incomplete accounts or unsupported forecasts can make a sound proposal harder to assess.

▪ Lender fit: Different lenders have different appetites for industries, property types and funding purposes.

Before your next acquisition or investment, understand what is supporting your borrowing capacity—and what is restricting it.

At Advanced Finance Group, I combine my experience as a Chartered Accountant, corporate adviser and finance broker to assess your financial position, identify constraints and explore suitable funding options.

Planning to grow, purchase equipment or invest in property? Contact me for a Funding Capacity Review.

advancedfinancegroup.com

Finance is subject to lender assessment, eligibility and approval.

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