Insights on Debt Capital Markets.
Whether it’s capital structure, typical lending terms, lender requirements, challenges or borrower concerns, we explore a variety of topics to assist you with your debt financing process.
We discuss the implications of having outstanding CRA balances when trying to raise debt and some of the ways business owners can tackle this issue.
We explore the rationale for personal guarantees and some of the ways borrowers can minimize or sometimes eliminate them.
In this Part 1, we present an overview of some of the most common challenges companies come across when seeking debt financing.
There is an extensive list of items that lenders need to review during their due diligence. We explore the main items, categorized into Corporate, Operational, Deal Specific and Financial information.
In this Part 2, we discuss some of the ways borrowers can mitigate some of the common challenges identified in Part 1 ahead of a debt financing transaction.
We discuss a typical structure when seeking debt financing for an acquisition and some of the ways to finance remaining portions of the purchase price.
We discuss key inputs impacting the total cost of borrowing, particularly how borrowers looking to preserve short-term cash flow can utilize amortization and interest-only periods as opposed to focusing on interest rate.