Advisory and deal preparation
Preparation is the part that decides the answer and the part nobody sells. Most of the work on a financing file happens before a lender sees it: what is asked for, in what order, with what evidence, and which lender it goes to first.
- Typical size
- Engaged as part of a financing mandate
- Typical time
- One to three weeks, depending on the state of the records.
- Security
- Not applicable.
When it fits.
- A request that has already been declined once.
- A business with real cash flow and disorganised records.
- An owner who does not want the deal shopped around the market.
- A file with something in it that needs explaining properly.
When it does not.
- A business looking only for the cheapest rate quote. That is a comparison site, not an advisory engagement.
- A request where the numbers do not support any facility. We will say so in the first week rather than the sixth.
The detail, if you want it.
Open only what applies to you. Nothing here is required reading before a first call.
How it actually works
The package is a document, not a folder. It states the amount, the purpose, the use of funds line by line, the source of repayment, the security on offer, and the risks the lender is going to find anyway, addressed before they ask. It is accompanied by evidence, in an order that follows the argument.
We also decide who sees it. A deal circulated widely comes back marked. A deal taken to three lenders whose mandate actually matches the security, the sector and the size gets read properly. We build that list with you and we do not approach anyone until you have approved it in writing.
What a lender will ask for6
- Whatever exists. Part of the work is finding what is missing.
- Financial statements and returns for the last two to three years
- Current interim results and a working trial balance
- Bank statements, receivable and payable ageings
- The existing debt schedule and PPSA registrations
- Corporate records, leases and material contracts
And what they will ask you4
- Is the request clear enough to price without a phone call?
- Does the evidence support the numbers in the summary?
- Has the obvious objection been dealt with before it was raised?
- Is this the right lender for this security and this sector?
Questions we get about this one3
- Do you contact lenders before I approve the list?
- No. Not one. You see the list, you approve it in writing, and only then does anything move.
- What if the file is not fundable?
- We tell you in the first week, with the reason and what would have to change, and what a different structure would need.
- How long does preparation take?
- One to three weeks in most cases. The variable is the state of the accounting records, not our end.
Read about this3
- How much can a business borrow against its revenue
How much can I borrow if my business does $1,000,000 a year? - How to prepare a business financing package
How do I put together a financing package a lender will actually read? - Why profitable businesses still get declined
Why did my business get declined for a loan when we are profitable?
- Term loansA fixed sum advanced at closing and repaid over a set schedule, for growth, refinancing or a single large investment.$100,000 to $5,000,000 and above
- Acquisition and buyout financingCapital stacks for buying a business, a franchise, or a partner out, built from bank debt, seller paper and buyer equity.Deal dependent, commonly $250,000 to $10,000,000
- Refinancing and debt restructuringConsolidating expensive or badly structured facilities into a schedule the business can actually carry.Matched to the existing debt, commonly $100,000 to $5,000,000
Is advisory preparation the right instrument for your deal?
Tell us the amount and the timing, and we will say which instrument we would reach for.
No lender hears your name until you say so.
A request emailed to twenty lenders leaves twenty records. The next one to see it reads the declines before they read the deal, and a file that looks shopped is priced as one. So the list is built with you, approved by you in writing, and nothing leaves this office before that.
- Call
- 416-841-8468
- Hours
- Weekdays, Toronto time