- Anthony Roberts/
- January 2019/
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. Consider all the options - including non-bank lenders, and leases as well as loans
- 2. Reserve your debt (and equity) for expansion
- 3. Look ahead to calculate the full total cost of debt, and
- 4. Choose a partner that knows more than you – not less