don't delay resolutions.
Delaying resolutions to your capital situation is like planning for disruption to your business. Along with "eating healthier" and "working out more", management should include "address outstanding capital needs" on their list of New Year's resolutions.
understand the fine print.
Credit agreements are really long. Borrowers should understand the breadth of terms they agree to, with disproportionate attention on those most directly affecting how they execute their vision.
embrace growing pains.
As companies grow up, their capital needs evolve. As will the landscape of available capital providers/solutions and those best suited to their needs. To avoid stunting growth, companies should embrace these growing pains and ensure they have the right solution in place.
leave preconceptions behind.
With capital markets in flux, companies raising debt should focus on successfully addressing their needs and avoid disappointment by leaving preconceptions at the door.
give the people what they want.
Presenting the wrong information or information in the wrong way can negatively impact outcomes when raising debt. Borrowers should give lenders what they need to come to a sound decision.
save the suspense.
Halloween reminds us there are times we enjoy suspense. Discussions with your lender are not one of those times. To enable more collaborative conversations and encourage better outcomes, borrowers should save the suspense.
preserve continuity.
How much debt is right for your company is a question about balance. Borrowers should balance financing needs and abilities to preserve a steady flow of capital - to fund important initiatives and maintain untapped financial reserves during good and bad times.
build more cash flow statements.
It's too common to come across companies that don't regularly track or project cash flow. The result is a poorer understanding of cash requirements and runway, which is critical during periods of market disruption. Do your business (and your lender) a favor and build more cash flow statements.
define your priorities.
"Debt vs. Equity?" can't be answered in a vacuum or with a textbook comparison. The decision is a function of priorities and availability.
be "the one who calls".
Borrowers shouldn't wait until they need something to talk to their lenders. Like the recent college grad too busy to talk to their parents, they limit themselves in unforeseen ways.
focus on what you can control.
You can't time the market — which holds for raising money. Instead, companies can focus on being the best at things under their control to set the stage for sustained success.
plan to invest for the future.
One result of rising rates will be less money available for borrowers to invest in their businesses. A way you could measure this is by looking at the impact on a company’s ability to cover its “financing nut”, or the yearly cost of its borrowed money. The bigger the nut, the more significant the reduction to “money available to invest for the future” (for some, up to 50%).