When a business starts looking for funding, the conversation usually centres on capital. How much is required? What will it cost? Which lenders might be interested? What terms can the business secure?
These questions matter. There is another cost, however, that rarely appears in a funding model: the amount of senior management time required to run the process.
For a CEO or CFO, raising debt can involve weeks or months of lender conversations, financial information requests, due diligence, management meetings, structuring discussions and negotiations. All of this takes place alongside the responsibility of running the business.
For established businesses across the UK and EU, particularly those with £10m+ in annual revenue where the CEO, CFO or Finance Director is directly involved in the funding process, the management-time cost can become significant.
That raises a question worth asking before a funding process begins:
The management time behind a debt raise
A funding requirement can start with a clear commercial objective. The business may be looking to acquire another company, enter a new market, refinance an existing facility, fund expansion or strengthen working capital.
Turning that requirement into completed financing is a more involved process.
Management needs to understand the available funding structures, identify relevant capital providers, prepare information, answer lender questions, attend meetings, assess proposals and negotiate terms. As the process develops, each lender may have its own requirements, credit considerations and approach to structuring the facility.
The work adds up quickly.
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Where management time goes |
What the process can involve |
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Lender research |
Identifying capital providers whose sector appetite, transaction size and credit criteria align with the business. |
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Information and due diligence |
Preparing financial, operational and commercial information and responding to detailed lender requests. |
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Management discussions |
Explaining the business model, growth plans, funding requirement and financial performance to potential capital providers. |
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Structuring |
Assessing different facilities, repayment profiles, covenants, security requirements and levels of flexibility. |
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Negotiation |
Comparing proposals and negotiating pricing, terms, conditions and documentation. |
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Execution |
Coordinating the final stages of the transaction alongside the company's day-to-day operations. |
For a finance team, much of this work is part of the job. For a CEO or CFO, every hour devoted to the process competes with other priorities.
For example, if a CFO spends 8 to 10 hours a week managing a funding process over 4 months, that represents roughly 130 to 170 hours of senior finance capacity.
Those hours could have been spent on forecasting, working capital, commercial planning, operational improvements or preparing the business for its next stage of growth.
For a CEO, the opportunity cost can be even greater. Time spent in lender meetings or reviewing funding proposals is time away from customers, employees, strategic decisions and the opportunities that drive enterprise value.
The funding process still needs to happen. The question is who should manage the process and how much of the operational workload should sit with the senior management team.
The first cost is the capital itself, including pricing, fees and the terms attached to the facility.
The second is the internal cost of securing it.
That internal cost includes the management hours involved, the finance resource diverted from other priorities and the commercial opportunities that receive less attention while the funding process is underway.
For businesses where senior management capacity is already stretched, this second cost deserves a place in the funding analysis.
A common instinct is to approach as many lenders as possible. A broader process creates more choice and can strengthen the negotiating position of the business.
It can also create a significant amount of additional work.
Different lenders have different mandates, risk appetites, sector preferences, structural requirements and return expectations. A lender that looks suitable at first glance may still have limited appetite for the particular business, transaction or funding structure.
This is why lender selection matters.
A well-run process starts with understanding the funding requirement and the characteristics of the business, then identifying capital providers that are relevant to that situation. The objective is to create a focused market process rather than generate a large volume of conversations that management then has to coordinate.
What Is Your Time Worth?
Estimate the senior management time a debt raise could require and understand the potential cost of managing the process internally.
The calculator provides an illustrative estimate based on the information entered and should not be treated as a precise measure of the internal cost of a funding process.
Understand the Lender's Perspective
Explore how lenders assess funding opportunities and the considerations that influence their appetite for a transaction.
Read the Lender's Perspective
Interest rates naturally attract attention during a debt raise, but pricing is one part of the funding decision.
The structure needs to work alongside the company's cash flow, growth plans and future requirements. Tenor, amortisation, covenants, security, flexibility and the lender's appetite can all influence whether a facility remains suitable as the business develops.
This becomes particularly important when funding supports a major strategic event.
A business financing an acquisition may need a structure that accommodates future acquisitions. A company expanding into new markets may place greater importance on flexibility and liquidity. A business refinancing existing debt may be looking to improve its overall capital structure rather than simply replace one facility with another.
The appropriate solution starts with understanding what the business is trying to achieve and how the capital needs to support that objective.
There is no single point at which every company needs external advice. The decision depends on the complexity of the requirement, the resources available internally and the importance of getting the structure right.
Specialist advice becomes particularly useful when a business is:
A specialist adviser can assess the requirement, consider potential structures, identify relevant capital providers, prepare the opportunity for market engagement, manage lender discussions, coordinate information requests and support negotiations.
This gives management greater control over where its time is spent while keeping senior decision-makers involved at the points where their judgement is required.
Is Your Business Ready to Raise Debt?
Assess your funding readiness and identify areas to consider before approaching potential lenders.
Keeping management focused on the business
The strongest reason to bring an adviser into a funding process may be the capacity it creates for the management team.
A CEO needs to remain focused on the performance and direction of the business. A CFO needs capacity to manage the company's financial health and support strategic decisions. When both are spending substantial time coordinating a funding process, other priorities inevitably compete for attention.
An adviser takes responsibility for much of the process workload while keeping management informed and involved in the decisions that matter.
For a business pursuing growth, that distinction can be significant.
The cost that does not appear on the term sheet
When management compares funding proposals, the analysis will usually cover pricing, fees, covenants, security and other commercial terms.
The cost of a debt raise includes the management attention required to secure the capital and the opportunity cost created along the way.
How many hours will the CEO spend with lenders? How much of the CFO's time will be required? How much finance-team capacity will be diverted towards information requests and due diligence? What strategic work will move down the priority list while the transaction is being managed?
The cost varies according to the business, the funding requirement and the complexity of the process.
Management time has an economic value, and a funding process consumes it.
For a growing business, understanding that cost can change the way management approaches the decision to run a funding process internally.
The value of getting time back
A debt raise should be assessed alongside the management attention required to secure the capital and the opportunity cost created along the way.
For some businesses, managing the process internally will make sense. For others, the time involved in identifying lenders, managing discussions, assessing structures and negotiating terms will make specialist support worthwhile. The important thing is to make that decision consciously.
What is your time worth?
If your business is considering growth funding, refinancing, acquisition finance or additional working capital, speak to Fuse Capital about your funding requirements.
Discuss Your Funding Requirement
For management teams preparing for a funding process, our CFO's Guide to Managing a Funding Raise provides a practical framework for thinking through the process, from preparation and lender engagement to evaluating funding options and managing negotiations.
Fuse Capital is a Global Capital Solutions Advisory firm covering Debt, M&A and Restructuring.
We act as an independent adviser rather than a lender or broker, supporting businesses through complex capital and transaction decisions. Our role is to help management teams assess their requirements, structure appropriate solutions, engage with relevant capital providers and navigate negotiations through to execution.
Fuse Capital has $1bn+ in completed transaction value, 250+ transactions completed, 1,500+ global capital partners and 13+ years in private markets.
Our debt advisory work supports businesses with requirements including growth finance, acquisition finance, refinancing and working capital.
Spend Less Time Managing the Process. Focus on Growing Your Business.
If your business is considering growth funding, refinancing, acquisition finance or additional working capital, speak to Fuse Capital about your funding requirements.
Frequently asked questions
How much management time does a debt raise typically require?
The time commitment varies according to the size, structure and complexity of the funding requirement and the number of capital providers involved. A process can require significant senior management involvement across lender meetings, information requests, due diligence, structuring and negotiations.
What does a debt adviser do?
A debt adviser helps a business assess its funding requirement, consider appropriate structures, identify relevant capital providers and manage the financing process. This can include lender engagement, coordination of information requests, evaluation of proposals and support through negotiations and execution.
When should a business consider using a debt adviser?
External advice can be particularly useful when a funding requirement is complex, involves several potential capital structures or is consuming significant senior management time. It can also be relevant when a business is refinancing, funding an acquisition, expanding or seeking additional working capital.
Is using a debt adviser only worthwhile for complex transactions?
The decision depends on the value of the advice relative to the internal resources required to run the process. An adviser can provide market perspective and process support even where the underlying funding requirement is clearly defined.
How does Fuse Capital support a debt raise?
Fuse Capital supports businesses through the debt financing process, from assessing the requirement and considering potential structures through to market engagement, lender negotiations and execution.
Is Fuse Capital a lender?
No. Fuse Capital is an independent capital solutions adviser, not a lender or broker. We advise businesses on capital structures and engage with relevant capital providers on their behalf.