A Step-by-Step Guide to Navigating the Post-Commencement Finance Process

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Filing for post-commencement finance involves several steps that require careful attention. After all, the future of your business and employees hangs in the balance.

But while the process asks a lot of you, it won’t be a lonely journey. A business rescue practitioner steps in to help you tackle this challenge head-on. In this guide, you will find the key phases of working together to secure the finance your business requires.

Let's explore the steps involved so you can prepare, apply, and move forward with confidence.

Step 1: Evaluate Your Financial Condition

Begin with a review of your business’ financial situation. In this step, you’ll collect relevant documents including balance sheets and cash flow statements. 

Analysing income and expense patterns gives you insights into the business's current position. This understanding empowers better decision-making for moving ahead. Once you’ve prepared this information, you’ve set the stage for productive discussions with lenders that allows for an honest assessment of the business’s ambitions.

Step 2: Formulate a Funding Strategy

Securing financing requires a strategic approach that outlines where funds will go. Potential lenders appreciate transparency in how funds will support the business. Prioritising areas such as operational expenses, debt management, staff retention, and new investments shows a commitment to growth. A thorough funding strategy reinforces your vision for business recovery.

Step 3: Scout For Potential Post-Commencement Finance Providers

Next, research options for post-commencement finance. Each lender comes with different terms and services, so it pays off to see what they bring to the table. 

Seeking suggestions from other entrepreneurs or financial advisors might help you discover useful leads. The right lender can align with your goals and offer more than financial assistance; they can truly support your journey back to stability.

At Geddes, we not only offer funding solutions but we can also assist with finding the right advisors for your company.

Step 4: Assemble Your Application

Getting your financing application right means focussing on the details. Include clear financial documents that work well with your business plan. Here, you’ll provide a breakdown of how you’ll use the funds, showing that you understand your challenges and have a clear recovery plan in place. 

Since each lender may have unique requirements, tailoring your application is crucial. A carefully put-together application not only demonstrates your professionalism but also reassures lenders about your capability to navigate the financing landscape.

Step 5: Present Your Business Case

When the time comes to meet with lenders, the focus shifts to delivering a compelling narrative. 

Share your business story, highlighting its strengths and the potential for recovery. Address any past challenges openly, but pivot quickly to how the funding will set your business on a new path. Using visuals or data can make your pitch more engaging and helps clarify your vision. 

This presentation becomes an opportunity to foster a connection with lenders, making them feel invested in your journey.

Step 6: Finalise the Financing Agreement

With lender approval secured, the next task is to wrap up the financing agreement. A careful examination of the terms and conditions keeps surprises at bay. 

Pay close attention to the interest rates, payment schedules, and any specific clauses that may affect your operations. A legal expert can shed light on the nuances of the agreement. 

Keeping communication open with lenders throughout this process fosters a strong, trustworthy relationship.

Step 7: Implement Funding Wisely

Once the funding arrives, the implementation phase begins. Following the outlined plan for fund usage is necessary for demonstrating accountability. Carefully track expenditures to ensure that the money flows into the right areas, whether it’s for operational needs or strategic investments. 

Step 8: Monitor Progress Continuously

As you integrate the new capital, tracking your business’s performance keeps the momentum going. Compare financial status with original projections to unveil useful insights. As you keep an eye on key metrics, it becomes clear where adjustments might be necessary. 

Regular discussions with lenders about your progress will also nurture strong relationships and might pave the way for future funding.

Wrapping Up The Post-Commencement Finance Process

Getting through the post-commencement finance process can feel like walking a tightrope, but with the right focus and support of the BRP, you can keep everything on track. 

As we have shown, each step deserves careful consideration to avoid any stumbling blocks. By taking a thoughtful approach, you build confidence among stakeholders and attract the funds required for ongoing operations. 

Geddes Capital is ready to assist with your post-commencement funding application as you work toward recovery. Get in touch today for more details.

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