Get the numbers right, get the business right

By: Maximiliam Bergman-Olson, Associate Partner, TicWorks

Summary: A well-structured set of data is the difference between an efficient credit dialogue and a drawn-out process where the lender keeps hitting gaps. Here we list five essential documents you should have in place before entering a financing dialogue — from an up-to-date pipeline and collateral valuations to a 12-month liquidity forecast

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Five essentials before the lender conversation

The specific requirements vary from credit to credit, but here are five fundamentals you should have in order before the dialogue begins

• Updated pipeline. A structured pipeline with probabilities and outcomes gives the lender insight into your business and client relationships – and reduces the uncertainty in their assessment.
• Updated collateral valuations. Current valuations of the assets intended as collateral are a minimum requirement
• Fresh consolidated group figures. For companies with multiple subsidiaries, this is often deprioritised internally – but it's the foundation of every credit assessment
• Forecast for both P&L and balance sheet. A P&L forecast alone is rarely enough. Lenders want to see the full financial picture going forward – including how the balance sheet evolves.
• 12-month liquidity forecast. Cash flow is the first thing lenders look at. Strong control here signals predictability – something lenders value highly

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When the data is in place

When the data is in place, you and your lender can focus on what actually requires human judgement – instead of getting stuck on gaps in the documentation. At TicWorks, we help companies package their materials the right way and present the deal to the right financiers. Learn more about our debt advisory – or see how we've handled similar situations in our past transactions