Do you really need to borrow and how much ?

How much financing you need and when do you need it ?

These are the two questions to get the right answers before approaching any financier.

Underestimating your needs will:

-         limit your financial resources at a critical time,

-         lead your business to certain risks, or

-         force you to forego a profitable opportunity.

However, if you overestimate them, you can end up with more debt than you intended.

In some cases, early repayment of debt carries a penalty.

In either case, overestimating financing needs will involve cost.

Do you really need to borrow and how much ?

Lack of clarity about the amount of financing needed (whether you ask for too much or too little) will be apparent to skilled lenders and investors.

Either approach reflects negatively on your management skills and the viability of the business, and will raise the risk associated with your business, likely translating to a higher cost of funding.

There are several components of financial need that you should consider estimating the funding you need.

'’Each door has key’’

Mourad Nait-Atmane

Founder of Tilelli Consulting Ltd