One of the most common commercial finance mistakes we see is businesses is not using debt correctly. Using various analytical tools & financial ratios both in your profit & loss and balance sheet we can quickly determine the right level and mix of funding relevant to your business.
This is particularly relevant when a business is in the growth phase, obviously most start up businesses rely heavily or totally on equity – effectively bootstrapping until such a time as funding is available and a lender will give you a go.
A major key to business success is the smart use of debt – using OPM – other peoples money – best facilitates scale and growth in most businesses. Analysis of equity quite often reveals it is more efficient to use lower priced debt than your equity – which can be deployed better elsewhere particularly in terms of non-business wealth creation.
What are your financial statements telling you about your debt levels??
