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TOOLS FOR DECISION-MAKING

Resources for business leaders.

Before financing growth: 10 questions for business leaders.

A guide to structuring the internal discussion before comparing financing options. Gather evidence for each answer and identify what still needs to be validated.

Download the guide in PDF · English

1. What specific objective will the capital fund?

Define the project, its expected outcome and the evidence you will use to assess whether it delivered.

2. How much funding is needed, and when?

Separate investment, working capital and liquidity reserves. Tie each funding requirement to the project timeline.

3. What cash flow will support repayment?

Prepare a forecast that distinguishes revenue, cash collections, operating expenses and existing obligations.

4. Does the financing term match the use of funds?

Compare the asset life or cash conversion cycle with the proposed maturity and repayment schedule.

5. What is the total cost on a comparable basis?

Account for interest, fees, insurance, expenses and prepayment terms. Establish whether the interest rate can change.

6. What happens if conditions deteriorate?

Assess lower revenue, slower collections, higher costs and, where relevant, changes in interest rates and exchange rates.

7. Which obligations could constrain flexibility?

Review collateral, contractual obligations, restrictions and the consequences of default with the appropriate specialists.

8. Which alternatives warrant comparison?

Consider internal funds, debt, leasing and equity capital in light of the funding need, costs and implications.

9. Is the financial information consistent?

Reconcile financial statements, tax information, outstanding debt and forecast assumptions before submitting an application.

10. Who will monitor performance after the agreement is signed?

Assign responsibility, establish reporting intervals and define alerts to monitor the use of funds, liquidity and compliance with obligations.

How to use this guide

For each question, record the answer, the supporting document, the person accountable and the next step. The aim is to make assumptions explicit before committing resources.

Personal views provided for information only. This material does not constitute advice or an offer of financial products or services. Each decision requires an assessment of the company’s circumstances with the appropriate specialists.

Reference reading

Financing a business involves more than finding the lowest interest rate.

This guide is an original editorial synthesis. The following resources provide additional context on planning, cash flow and financing structure; their institutional context is the United States.

SBA · Business financing questions

Bank of America · Debt and business growth