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The golden rules for balancing capital structure

In Inside Small BusinessAnthony Roberts writes that cashflow keeps a lot of SMEs up at night - which is what makes optimising their capital structure so key.

Capital structure is the mix of debt, equity and asset finance that is used to fund a business - and can make a huge difference to the sustainability and success of a business.

So what are the golden rules for SMEs when it comes to deciding capital structures? Anthony writes that they are:

  1. 1. Consider all the options - including non-bank lenders, and leases as well as loans
  2. 2. Reserve your debt (and equity) for expansion
  3. 3. Look ahead to calculate the full total cost of debt, and
  4. 4. Choose a partner that knows more than you – not less

All these factors should be considered when deciding your capital structure - to find out more, read the full article on Inside Small Business. 

Anthony Roberts
Anthony Roberts
As Managing Director of Eclipx Commercial, Anthony is a true asset and equipment finance expert, having specialised in this area for over 20 years. Anthony’s role encompasses sales leadership, business development and strategic growth for Eclipx Commercial. He is passionate about delivering smarter, more innovative finance solutions to the market and empowering both staff and clients to achieve greater success.

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