The majority of businesses rely on debt to fund their business and support growth initiatives. In certain circumstances, current debt facilities may be insufficient to meet a business’s needs if there is a looming cash requirement. Additionally, demands from an existing lender may require a business to seek to repay its current debt, sometimes in accelerated circumstances.
The current debt market in the UK is highly complex with a significant number of lenders who have differing credit policies, risk attitudes for certain sectors as well as structures and pricing. This often leaves the borrower with a vast number of choices but a great degree of uncertainty as to which of these options may be deliverable.
Debt may also not be an option for some businesses based on the lack of asset availability, the lack of sufficient cash to support debt service costs or the lack of lender appetite for certain sectors. Support could be obtained from equity providers which range from PE funds, turnaround investors to high-net-worth individuals. A number of options exist; however, not all of these are easily accessible and are often based upon personal relationships and networks.