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.

As people, we constantly swap things we outgrow for more suitable alternatives. As we outgrow clothing from our childhood, we move to the "adults" shopping section. As we outgrow a shared college dorm room, we move into an apartment/house. We adapt based on what best suits our needs and don't hold ourselves back from growth (save for some last-minute nostalgia).

Companies are similar but have theoretically "indeterminate" growth - they will get as big as their environment and diet allow. Conversely, lenders are often range-bound in what they can provide as support (capacity/terms/flexibility). To encourage growth, companies should continuously evaluate if their capital solution best fits their needs. Moving on isn't always easy, but it's a natural part of the growing process - and a step best taken proactively (e.g., it's better to get a new shirt before you burst through the seams of your old one in the middle of a big meeting).

The Uncommon Borrower embraces growing pains and adapts as their needs evolve - they 1) continuously analyze their capital needs and existing solutions' ability to meet their needs, 2) identify (sometimes newly) available options based on the current company/market environment, and 3) proactively establish solutions they can grow into (before hitting a wall/bursting at the seams).

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understand the fine print.

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leave preconceptions behind.