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Why you are wasting time and resource raising finance. And what 4 CFOs did about it

Why you are wasting time and resource raising finance. And what 4 CFOs did about it

Running a fast-growing and scaling technology business is hard work. At times you feel you don’t have enough hours in the day to get tasks done. You worry that if you take your eye off the ball, your business might suffer.

So the last thing you need is the distraction caused by diverting senior management’s time to fundraising.

Here’s why you can and should outsource this task to a specialist debt advisor.

 

1.     Informs you about the options you have

Keeping up with the needs of fast-growing and scaling tech businesses has proved difficult for banks. Tech business models showed to pay off in the long term, still don’t make it past some traditional bank risk profiles.

And then there is the problem of the conflict of interests between advisory and audit services offered by large consultancy firms.

When other routes appear unavailable, a specialist debt advisor can introduce you to alternative sources of finance.

 

2.    Saves you time finding the right partner

Thorough research stops you from wasting time talking to people who are unlikely to finance your business.

 

“Knowing who to talk to and what to talk about is specialist debt advisor Fuse Three’s significant value-add. If I had phoned private debt funds direct, it probably would have taken me a month to get hold of the right people to speak to. In fact, it can take years to build the types of relationships and trust that Fuse Three already has.” 

 

Karen Bach, SaaS CFO

 

3.    Opens doors to productive conversations

 

People like to do business with people they know, like and trust.

 

“The [debt finance raising] process reinforced the importance of working with a specialist debt advisor with the right contacts and credibility. If you think about it, Russell (Fuse Three Director) made one phone call. The private debt fund knew him. Also, trusted him. Has worked with him several times. So it said, ‘Yup, I like the sound of that. Let’s meet’.

 

Karen Bach, SaaS CFO

 

4.    Gets term sheets on the table… fast

 

Scale ups need flexible growth finance to seize opportunities.

 

“The competitive process made sure debt funds paid us attention. Having a specialist debt advisor onboard led to us receiving four offers in quick succession. As a result, we were able to secure the best deal.” 

 

Spacetech CEO Patrick Newton

 

5.    Gets you the best terms

It’s not just who you know; it’s what you know.

 

“I only get involved in transactions like this about once every three years, whereas sourcing, structuring and closing these transactions is Fuse Three’s day job. Consequently, Fuse Three knows what interest rates and charges I should pay. Also, because the debt funds know Fuse Three is presenting my IM to the market, I know I’m likely to get a better deal.”

 

Ian Bastow, Healthtech CFO

 

6.    Saves time in the closing process

 

As Benjamin Franklin said:  “By failing to plan, you are preparing to fail.”

 

“Closing a debt finance transaction requires time and resource. The debt fund needs to meet the exec team. Also, we need to organise customer reference calls and commit time to a due diligence process. Knowing which debt fund best matched our needs, and the likelihood of signing a contract saved us weeks and weeks of effort.”

 

Ian Bastow, Healthtech CFO

 

7.    Gets you the funds you need before you need them

When you raise money early, you put yourself in a stronger position to seize opportunities. 

Moreover, because no-one can predict the future, raising finance before you need it allows you to make informed decisions even in uncertain economic times.

“Six months on, and with a valuation of $250M, we’re in a position to close a significant Equity round. As a result, we can fund two US acquisitions. We couldn’t be more pleased.”

Martech CFO, Singapore

 

And finally

 

If you’d like to save time and resource raising flexible alternative debt finance, drop me a line about debt advisory and brokerage services, and we’ll set up a time to chat.