(If you’re wondering, yes that’s Ian climbing Denali in Alaska).

Whether you have just drenched 1,000 weaners, strained 5km of fencing or ran 20km, there is a sense of satisfaction that sits behind the achievement.  It is difficult to correlate the similarities, but the same can be said for conducting a forensic analysis on the debt funding that sits behind the business.

Why is this?

Because reward does not come without effort.  And there is plenty of reward hidden within debt capital structures for everyone who seeks it.  But like all achievements in life, there is a definitive process and commitment to secure the benefits that cannot be shortened by idleness.

There are two key motivations to seek these rewards.

The first is primal.

A pure survival mechanism that is ingrained within our DNA.  We are now clearly in the midst of a credit tightening cycle and primal instinct of self-preservation should naturally kick in.

We openly invite vocal discussion and debate on this topic.  Our continual engagement with senior debt lenders on business lending leads us to a definitive conclusion that credit is now a more authentic and complicated process of diligence and governance.  On the 24th September the Australian Finance Review headlined “Hayne blamed for small biz credit crunch” written by John Kehoe.  Blame is shaming but does not divert the key issue.  Business owners must look square into their capability of understanding the dynamics of credit, credit assessment, credit risk and credit procurement.  Funding risk can be measured and mitigated once an assessment is completed.  Insolvency is derived from a lack of liquidity, not profitability.  If a business cannot address the credit criteria to their lenders, then terms of their agreement are at risk.


(photo by Ian Robinson: Bedouins living in Jordon’s deserts)

The second is economic reward.

This is the most intrinsically attractive and tangible result of the effort.  The portion that high fives the principle owners into engaging a tactical response towards growth and investment opportunities.  It frees up capital and reduces the cost of interest.  It is the financial lubricant that greases the wheels of commerce and wealth creation.

We have the luxury of watching the transformation of principle business owners transitioning from one of self-doubt and denial to accountability and empowerment when they invest in a focused approach to their debt funding.  Saving $10,000 p.a. to over $500,000 p.a is a relative achievement to scale but none the less equally rewarding.  This is real cash flow that can be applied to accelerated debt reduction, business investment or personal reward.


(photo by Ian Robinson: QLD cattle station)

Approaching the credit requirements from a strategic position enables a business owner to conduct a forensic view into their business through the eyes of a risk assessor.  Not only does the process re-educate the principles to the sensitivities to credit, but it also opens critical revelations within the business that may have been an oversight.

A credit assessment should never be viewed as a wasteful distraction: bequeath the demise of the fool hardy that does.  Instead view it as an ancestral spearhead moment of truth and the woomera for financial liberation.

More importantly, a tightening credit cycle should spur urgency and necessity, for those that sit in the back seat – get the bumpy ride.

Have a great week thinking about your debt funding strategy.  Then call us when you do.

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