CFODestination · Where are we going?
Do we need outside money, and on what terms?
The right capital at the right time speeds growth up. The wrong terms hold you back, and many owners reach for money before they need it.
Outside money is a tool, not a milestone. The work is knowing whether you need it, how much, when, and which kind fits the job.
An approach
- Ask whether growth can fund itself. Forecast cash with the growth plan and no new money.
- Size and time any gap. How much, and in which month.
- Match the money to the need. A line of credit for timing gaps, a term loan for equipment, equity only for bets that debt can’t carry.
- Know your numbers first. Margins, forecast, and exactly what the money will do.
- Compare more than the rate. Covenants, personal guarantees, control and reporting requirements.
You can answer it when
- You know whether growth can be self-funded.
- You know the terms you would and wouldn’t accept.
Related
Want to work through this with us? We’ll bring the forward view.
Work through this with usA short starting guide. More detail is on the way.
