Growing A Business Through Debt

Key matters for a borrower to consider

Debt is a powerful strategic tool that can expand market reach, diversify portfolios, and provide a competitive edge without diluting the shareholdings of founding members. It can be used to finance acquisitions, enhance working capital, acquire assets, or generally assist cash flow.

In this article, we explore how incremental or accordion facilities can be utilised by a borrower and consider protections for a borrower to freely operate their business within the parameters of debt funding.

However, what features would commonly be seen in an accordion facility?

Interest rates

Interest rates are the heartbeat of any borrowing agreement. Incremental facilities can provide the opportunity for interest rates that align with your acquisition endeavours/business plans. Interest is a cost which can be de-risked by successful financial performance.