8 key steps to prepare for Venture Debt

Preparation is the key to securing growth capital. It may seem like a daunting task, but lenders have just a few primary questions that you need to answer. Be prepared to do so, and you are halfway there. We have listed the 8 key steps you should take to prepare your business for venture debt. Get in touch to find out more!

8 key steps to prepare for venture debt

Securing funding takes preparation. Follow these 8 steps to ensure that your business is ready to answer the key questions that investors ask.

1. Collate your financial information

  • Recent management accounts
  • Forecasts for the next 2-3 years
  • Last 3 years of accounts
  • A capitalisation table

2. Compile a detailed company profile

  • Business history
  • Funding raised to date
  • Ownership

3. Explain your business model

  • Problems your business solves
  • Your Unique Selling Points
  • Customer profile
  • Route to market

4. Analyse your market

  • Size & maturity: emerging, consolidating, established
  • Key trends
  • Your competitors and what sets you apart
  • M&A activity in your sector

5. Describe management team

  • Key people in the business
  • Their role and background
  • The board of directors

6. Outline your funding needs

  • The amount required
  • Where and when this will be invested
  • What the funds will enable you to achieve

7. Clarify how your business will service the debt in a downside

  • Cost efficiencies
  • Potential visibility on future revenue
  • Assets that can be sold
  • Details of what a third party would purchase in such case

8. Indicate your ambition

  • Where you would like to take the business
  • Exit routes most attractive to you

growth loan criteria

Download The Growth Lending Guide to learn more and discover how Growth Capital can help your business growth without equity-loss.