Capital and debt financing is on the rise. With it comes a growing interest in financing alternatives like public private partnerships (PPP), European Investment Bank loans, crowd lending, green finance and/or bonds. In today's challenging economy, building your case to obtain funding has grown more complex than ever before, due to the vast variety of financing options, financing instruments and partners.
Banks and investors demand a balanced financial structure that is well documented and based on a solid repayment, cash flow and risk analysis. The COVID-19 crisis only reinforced this trend. Successful (re)financing starts before the need for funding arises. Strategically managing your funding and projects on a regular basis will help you to anticipate financing needs, create the optimum funding structure and give you time to build a robust case for investors or lenders.
Assess your financial fitness
More than a mere review of operations, organisations need to conduct objective assessments of the alignment of their business strategies to their funding needs. Capital and debt financing is a sustainable solution that takes a long-term perspective. It’s a strategy, aligned with your operational business plan, that matches particular financing instruments to both business and investment needs.
Questions you need to ask yourself:
- Is your funding allocated appropriately across projects, functions, divisions, customers and geographies?
- How do you know which funding optimising measures really matter?
- Do you use scenario modelling and other risk assessments to underpin your decisions about funding optimisation?
- Are you able to demonstrate that your business decisions and funding are founded on robust data and reasoned assumptions?