What you may not know is capital structure advisory work focuses on providing business owners with tools to help them reduce risk and increase access to capital.
The first step of capital structure advice is breaking down your business goals so that you can set realistic expectations about capital requirements, how capital will be used, which measures you should focus on, and the sources of capital available. Once financial goals are clearly defined, capital structure advisors use this information together with their industry knowledge to provide recommendations for capital sources that match your needs.
For example, if your primary goal is funding inventory or accounts receivable growth then direct debt financing could be an appropriate source for this need. If accessing money through capitalization of retained earnings is important for making strategic investments in new technologies or capital equipment, then debt capital could be a fit. If you have limited capital resources and limited access to capital, this is when the advice from capital advisors becomes vital because it helps business owners review all their lending options available in order to identify the right solution for their capital needs.
After analyzing your needs and goals, the team can work with you to improve your financial information through our business advisory services or complete a valuation of your company in order to benchmark your business performance against others in similar industries or geographic regions. This analysis will help set a foundation for determining if further investment in the business makes sense and whether there are opportunities that should be explored before making additional investments such as refinancing your current operating agreements or restructuring current debt.
Once these advisors understand your business and capital needs they can complete a capital plan that maps out specific capital requirements, capital sources, and measures to be used in order to track capital performance. A capital plan is one of the most valuable business advisory services small business owners have because it provides clear insights into financial results and capital utilization over time through project cash flow forecasts and cash flow reports. This helps business owners plan for future year growth, anticipate strategic investment opportunities such as new locations or acquisitions, determine which financing option is more appropriate for access to capital depending on different capital markets conditions (such as credit), and better align themselves with the future.
A successful business capital plan also considers capital sources, such as capital markets underwriting services when structuring an optimal capital program. By using a capital plan in all capital management-related business decisions, small business owners can control their capital destiny and gain the knowledge necessary to maximize the return on the capital they invest in their company for growth and success.
To learn more about how we can help your company grow visit our website at https://www.tcgfunds.com/.