Capital structure
Choose a capital structure that fits the business
The amount matters, but so do the repayment source, collateral, duration, and flexibility built into the facility.
Start with the need
Four questions should shape the structure
The right structure begins with what the capital must accomplish and how the obligation will be supported.
01
What is the capital funding?
Operations, a fixed asset, a refinance, a transition, or a transaction may require different structures.
02
How will it be repaid?
Repayment may come from operating cash flow, receivable conversion, asset proceeds, or a defined event.
03
How long is it needed?
Match short-term timing needs and long-lived investments to an appropriate duration.
04
How much flexibility matters?
Consider future draws, reuse of principal, seasonal availability, and room for additional capital.
Common structures
Different tools solve different financing needs
Compare structures based on the operating objective rather than a headline amount alone.
Compare the full offer
The headline rate does not tell the full story
Put competing structures on the same basis before deciding which one best supports the business.
- Committed amount, initial draw, and actual net proceeds.
- Payment amount, amortization, maturity, and total expected cost.
- Collateral, guarantees, reporting, and financial covenants.
- Prepayment terms, future borrowing flexibility, and events that reduce availability.
Structure around the business
Balance immediate proceeds with long-term flexibility
The facility should address today’s use of funds while accounting for operating volatility and future capital needs.
Size the real need
Begin with uses, payoffs, costs, and the liquidity the business must retain.
Test the repayment path
Evaluate required payments against realistic, not idealized, cash flow.
Protect future options
Understand what the structure permits after closing and what could constrain the next move.
Evaluate the structure, not only the amount
Tell us what the capital needs to accomplish. We will review the operating context, timing, and available paths.
Financing is subject to application, underwriting, approval, eligibility requirements, and final documentation.