Five Crucial C's to Bedazzling Commercial Lenders

<p><br>Now, as the entrepreneurial ecosystem looks to stabilize itself, Founders may be looking to lenders to help start, stabilize or grow their business. If you’ve been pondering the idea of raising debt capital (aka a business loan) and don’t know where to start or how to set yourself up for success, NTN Pro, Shannon Peston, former banker turned Founder and CEO of Pestun Consulting,  walks us through the need-to-know basics.</p><p><br></p><p><strong>PART 1 // DEBT FINANCING: BALANCE SHEET, MEET LEVERAGE<br></strong><br></p><p><br>Debt financing is the process of entering into a contractual agreement with a lender (<strong>usually</strong>, banks or developmental lenders like Community Futures). The loan, a sum of money is lent with the agreement that the principal amount will be repaid over a specific time frame. In most cases, interest and/or finance charges must also be paid in addition to the principal payments.</p><p><br>Lenders expect Founders to be able to articulate what the loan will be used for, and as Shannon explains, ideally it’s to finance growth rather than repaying existing debt. Keep in mind, adding debt (any form of debt, including Covid emergency funds) to your balance sheet, when cash flow, is tight can skew your  ratios and decrease the value of your business.</p><p><br>Tune in to Part 1, as Shannon breaks down the details of debt including how it may affect your balance sheet and future fundraising efforts. </p><p><br>Did you know debt financing can be less expensive than equity investment? Brain boggled? Tune into learn more. </p><p><br></p><p><strong>PART 2 // HOW TO BEDAZZLE BANKERS<br></strong><br></p><p><br>Hint: It’s not by walking through the doors unprepared. In addition to the basics, like a business plan and cashflow projection, there are five critical points you’ll want to get a handle on before you open a lender’s door. </p><p><br>Shannon’s laying it on the line in Part 2! Point-blank, she clarifies the meaning and relevance behind each of the five C’s, and the weight