Outgrowing your credit facility is a good problem to have, until it isn’t. As your business grows, so does the amount of capital you need behind it.
But most borrowing bases aren’t reviewed often enough to keep pace. Three things determine how much room you actually have: your assets, your growth rate, and your timing.
- Assets determine what can be pledged and how lenders value it.
- Growth determines whether your facility can keep up with revenue.
- Timing determines whether you’re renegotiating on your terms or scrambling on theirs.
If it’s been a while since your facility was reassessed, it’s worth a conversation before you hit the ceiling.
Is your facility keeping up with your growth?
We review borrowing bases and credit facilities against where your business is going, then take the right structure to the right lenders.