Fundraising — Debt Financing
Not every business needs to give up equity to raise capital — a term loan, trade finance facility or overdraft can fund growth without diluting ownership, if it's matched to how the business actually generates cash. FMCA structures the application, matches the facility type to the need, and negotiates covenants that fit real cash flow instead of a generic bank template.
Reviewed by FMCA's Senior Fundraising Advisory Team — supporting SME and startup capital raises across the UAE and Saudi Arabia.
Four areas of work, from facility selection through to the covenant terms that determine how much flexibility the business actually retains.
Term loan, trade finance, overdraft or invoice discounting — matched to how the business actually generates and needs cash, not a default product.
Financial statements and supporting documentation prepared in the format credit committees actually expect, not just what the application form asks for.
Covenants negotiated against realistic cash flow projections, not accepted as boilerplate that becomes a breach risk within a year.
Existing facilities reviewed and refinanced where the original terms no longer reflect the business's actual credit standing.
A facility taken under time pressure is rarely the one that fits the business best a year later.
A term loan taken for what was actually a working-capital gap — or vice versa — creates repayment pressure that doesn't match the business's real cash cycle.
Covenants accepted without modeling them against realistic cash flow can trigger a technical breach long before the business is actually in financial trouble.
An application built without understanding what the specific credit committee actually screens for is a common, avoidable cause of rejection or a worse-than-necessary rate.
Debt financing is one of two real paths to raising capital — see Equity Fundraising for the other, dilutive option.
Both raise capital, but they answer a fundamentally different question about who takes the risk.
Our Approach
Banks offer standardized facility products; your cash flow rarely fits one perfectly. FMCA models the actual cash cycle first, then matches the facility type and negotiates covenants that reflect it — the same discipline behind every fundraising engagement we run, applied to non-dilutive capital.
How We Work
Illustrative scenarios based on the kind of work we do — not descriptions of specific named clients.
A revolving trade finance facility structured around a seasonal inventory cycle, replacing a term loan that had been forcing repayments during the business's lowest-cash months.
A proposed covenant package was modeled against conservative cash flow projections and renegotiated before signing, avoiding a near-certain breach within the first year.
An existing facility, priced against the client's credit standing from three years earlier, was refinanced to reflect its now-established trading history.
Related Insights
FAQ
A term loan provides a lump sum repaid over a fixed schedule, suited to a defined investment like equipment or expansion. Trade finance facilities — like letters of credit or invoice discounting — fund specific transactions or working-capital cycles rather than a one-off amount.
Banks generally look for at least 1-2 years of trading history and demonstrable cash flow, though this varies by bank and facility type — some trade finance products are more accessible earlier.
Consequences range from a formal notice and renegotiation to acceleration of the full facility, depending on the covenant and the bank's discretion — which is exactly why covenants need to be modeled realistically before signing.
Neither is universally better — debt avoids dilution but requires reliable cash flow to service; equity requires no repayment but dilutes ownership and adds investor involvement. The right choice depends on the business's stage and cash flow profile.
Often yes, particularly if the business's credit standing or trading history has improved materially since the facility was first arranged. We review existing facilities against current market terms before recommending a refinance.
Tell us where things stand and a senior consultant will get back to you directly — not a call centre.
