One of the most common reasons a small business gets into trouble is running out of cash. And when cash has been eroded, it often means something else is going wrong in the business, and when that is discovered it can lead to challenges in getting access to capital or capital at a reasonable cost.
Capital efficiency will help ensure that capital allocation is both yielding a positive return on invested capital while satisfying, and securing, cash needs. The mix of short-term debt, long-term debt, and equity across an optimal capital structure can start at the funding of an acquisition, or be restructured during a distress situation.
Whatever the scenario may be, as the performance of the business improves, unexpected challenges that arise can be met without having to turn to desperate, and often expensive, measures.
Cash requirement analysis
Acquisition cost requirements
Seller note optimization
Weighted Average Cost of Capital measurement
Short and Long-term debt structure analysis
Rate sensitivity testing
Access to a network of lenders, including, but not limited to: SBA, C&I, ABL, Factoring, Inventory, Equipment, Real Estate