A borrower's checklist before approaching private capital

The quality of a funding request shapes the response to it. A clear, complete request is engaged with quickly and seriously; a vague one tends to stall. Before approaching private capital, it is worth being able to answer the following plainly.

Purpose

What, specifically, will the capital fund? "Working capital" or "a project" is rarely enough. A precise purpose lets a lender understand the risk and the timeline.

Amount and structure

How much is needed, and in what form — senior debt, bridging, construction, mezzanine or another structure. Knowing where your request sits in the capital stack matters as much as the headline figure.

Security

What asset or assets are offered as security, where they sit, and what position is available. If there is an existing facility ahead of the request, be ready to explain it.

Valuation

Is there a current valuation? Who prepared it and on what basis? A recent, supportable figure carries far more weight than an estimate.

Timeline

When are funds required, and what is driving that date? A realistic timeline is more credible — and easier to fund — than an artificial deadline.

Exit and repayment

How, and when, will the facility be repaid? Sale, refinance or completion are all legitimate, but the path needs to be defined and plausible.

Documents

Have the core materials ready: title and ownership, financial information, plans or approvals where relevant, leases or contracts, and anything specific to the asset. A request supported by organised documents signals that the rest of the transaction will be handled the same way.

Expectations

Be realistic about terms. Private capital prices for risk, structure and speed. Engaging with the market on that basis leads to faster, better outcomes than anchoring to terms that do not reflect the transaction.

Preparation is not a formality. It is the single biggest factor in how a request is received — and the work done before going to market is rarely wasted.