Having worked with businesses across the North West for a number of years, I’ve supported founders at all stages of that journey. What follows is my honest take on what tends to make a business genuinely ready for debt funding.

My goal is always the same — to understand the business properly and find a way to help if I can.

Financials that tell a coherent story

Numbers matter, but what I’m really looking for is the narrative behind them. A business with steady, consistent growth often tells a more reassuring story than one with a dramatic peak followed by an unexplained dip. I’m not expecting perfection — every business goes through quieter periods. What helps is when founders can walk me through their financials with confidence and explain what’s driving the trends, good and bad. Properly prepared accounts, a clear view on margins, and cash flow that shows the business can comfortably service a loan are all things that make the conversation much easier.

A team I can believe in

Funding decisions are rarely just about the numbers — they’re about people. When I assess an application, I’m also trying to understand the experience and judgement of the team behind it. I’ve supported businesses where the financials were modest but the management team was thoughtful and clear on where they were headed. That counts for a great deal. What I find reassuring is a team that has a genuine grasp of their own numbers, is honest about the risks as well as the opportunities, and can articulate clearly what they want to achieve with the funding.

A plan that’s honest, not just optimistic

The most compelling business plans aren’t always the most ambitious ones. What stands out is a plan grounded in reality — one that acknowledges the challenges alongside the opportunities, sets out sensible assumptions, and explains clearly how the funding will make a difference. A modest, well-evidenced projection is far more persuasive than projected growth of 40% year-on-year with nothing to back it up. If your plan clearly sets out what the funding is for, how it will be repaid, and what the main risks are, you’re already in a strong position.

Transparency about existing commitments

Before we can think about new funding, it helps to understand the full picture — including any existing borrowings, director loans, or asset finance the business is already servicing. This isn’t about looking for reasons to say no; it’s about making sure any new lending is genuinely sustainable. The more open you can be about where things stand, the more this helps us to work out what is possible. A good lender should be helping you find the right level of funding, not just the maximum available.

Security — and the conversation around it

Debt funding is secured lending, so we do need to understand what security is available — whether that’s a charge over business assets, a personal guarantee, or something else. Personal guarantees are something many founders feel anxious about, and that’s completely understandable. I always encourage people to take independent legal advice before signing anything. If security is a concern, it’s worth raising it early — there’s often more flexibility than people expect, and it’s much better discussed openly than allowed to become a sticking point.

If you’re thinking about debt funding and wondering whether your business is ready — reach out. You might be further along than you think.

Sector knowledge and alternative routes

Sometimes, through conversation, it becomes clear that the funding requirement would be better served by a different structure. This piece focuses on debt funding, but River Capital has a broader range of products — including equity, mezzanine, and venture capital — so if debt isn’t the right fit, there’s often still a conversation to be had. And where we can’t help at all, we have deep sector knowledge across the North West funding landscape and are well placed to signpost or convene additional funders to support the full funding need. The goal is always to find the right outcome for the business, not just the easiest one for us.

Finally

The businesses that secure funding are those where I come away from the first conversation feeling like I genuinely understand the business, trust the people running it, and can see a credible path forward. If you’re thinking about debt funding, my honest advice is to simply get in touch and have a conversation.

ENDS