Sometimes that's all that's needed to take full advantage of an opportunity or to solve a temporary problem. We can help with that. We are experienced at finding and structuring the best financing even in such challenging situations as replacing defaulted loans.

But, a decision to borrow or to sell equity may not be the best solution even if it's possible. There are always consequences to obtaining funding: additional costs are incurred for interest or other loan charges, or ownership in the company is given up at some valuation in exchange for cash, or even just for loan guarantees. Clearly it's better to avoid all of those if the company's objectives can be met without them. And there are circumstances where additional funding is just a patch that covers up an undiscovered serious problem.

Some of our best work has been in showing clients
how to meet their objectives without additional borrowing
or selling equity in their company.

How do we tell the difference?

If there appears to be a cash shortage or other capital need, our approach has four parts:

• Analyze the company's financial situation (see "Condition Assessment") to be certain that there really is a need and why it exists
• Determine whether additional capital is the best way to solve the problem or take advantage of an opportunity, or if some other solution is better
• If additional capital is determined to be the best choice, develop a cash plan to demonstrate the need, and to prove the ability for loan payback or return on investment
• Properly implement the decision
  
  

Case Studies

Sometimes management decides on a course of action that does not address the real problem. Below are some real-life examples of how symptoms can be confused with causes and our ability to discover the difference.

• A company's management thought all they needed was more financing. With declining sales and increasing losses, that wasn't possible. And it wouldn't have solved the problem anyway. We cut a computer reseller's break-even point by 40%; despite temporarily decreased sales, and the bottom line improved from loss of 5% of sales to a profit of 10%. Click here to learn more
  
  
• Management engaged us to return the company to profitability and to evaluate a proposed loan from a banker met at a cocktail party. We analyzed the proposal, found that the "loan" was a cleverly disguised takeover attempt and exposed it. Then we lowered the growing call center's overhead by 30% while increasing overall productivity; profits improved by 50%. No loan was necessary. Click here to learn more
  
  
• Sometimes owners look at the imminent demise of their company and think it's just a temporary problem. For this company, we removed the critical threats, developed valuable management tools, and eliminated the need for expensive additional financing. Click here to learn more
  
  

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