What’s in it for you? Why Hire an Advisory Service?
“Why should we pay you to do something we can do ourselves?” I hear this question a few times a week during client calls. I welcome it and it’s an important one. I’ll know pretty quickly after answering if the client sees the value in what we do and if we’ll work well together. Here’s a few of the points I offer during the discussion:
Relationships matter. We have a network of over 100 venture debt funds and venture bank sources. We can simultaneously get a client’s request in front of multiple high-potential lenders. We have the ability to aggressively negotiate terms with lenders. Because we work with them often, we’re more likely to receive accommodations to terms if requested.
Time is money. Most people in a company who would normally be tasked with sourcing a debt facility already have a full time job (CEO, CFO, COO, etc.). Simply to research prospective lenders and initiate requests for a facility is incredibly time consuming if you don’t already have relationships. While it can be done successfully, when factoring in the opportunity cost of time, hiring an advisor can be a bargain.
You covered your bases. An additional benefit to the process is hard data which can be shared with other members of the management team, founders, the board, etc. Our goal is always to generate multiple term sheets for clients. When it comes time to decide to secure a debt facility (or not), you can be assured you have a significant amount of actionable intelligence with which to report and base decisions.
As with any solution, we don’t pretend to be the perfect fit for everyone. If your company has a capital need that can be fulfilled in whole or in part by a debt facility, and you see the value in working with an advisory service to handle the process, we’re likely a great fit for you. Please reach out if you have any questions or would like to discuss. Stay safe!