Extend Cash Runway

Extending cash runway is typically driven by uncertainty rather than expansion. It reflects a need for additional time when revenue visibility tightens, costs precede stabilisation, or external events disrupt planning assumptions.

Debt is used in these situations to preserve operational continuity and decision-making flexibility — allowing a business to meet commitments and maintain stability while clarity improves. Outcomes depend less on the amount of liquidity raised and more on how effectively that liquidity absorbs volatility without creating additional pressure.

Situations where businesses seek to extend runway

Runway extension is most often considered when a business faces:

  • Reduced short-term visibility on revenues or collections
  • Higher operating costs ahead of stabilisation
  • Delays in anticipated transactions, growth inflection points, or external funding
  • Temporary disruption to normal cash generation
  • A need to maintain flexibility while strategic options are evaluated

These situations are often transitional, but rarely predictable in duration.

Factors that tend to shape runway extension outcomes

Runway-extension borrowing succeeds or fails based on how well it supports decision-making under uncertainty.

Duration of uncertainty

The realistic length of time for which additional liquidity may be required.

Tolerance for fixed obligations

Whether the business can service repayments without constraining operational choices.

Sensitivity to downside scenarios

How quickly liquidity pressure would return if conditions worsen or stabilisation is delayed.

Ability to preserve optionality

The degree to which funding allows the business to adapt, rather than forcing specific outcomes.

When these factors are underestimated, short-term relief can introduce longer-term fragility.

How runway considerations differ by business context

Sponsor-backed & institutional businesses

Runway extension is often used to maintain flexibility during defined periods of transition.

Common considerations include:

  • Preserving stability during restructuring, integration, or strategic review
  • Avoiding forced asset sales or premature refinancing
  • Maintaining control over the timing of long-term capital decisions

Owner-managed & founder-led businesses

Runway extension is more directly tied to safeguarding operations and control.

Common considerations include:

  • Creating breathing room during periods of uncertainty or slowdown
  • Avoiding reactive decision-making under liquidity pressure
  • Maintaining autonomy while longer-term paths are assessed

Where runway extension often becomes fragile

Runway extension rarely creates issues on day one. Pressure tends to emerge when uncertainty persists longer than expected.

Common failure points include funding assumptions based on optimistic recovery timelines, repayment schedules that introduce urgency before visibility improves, or repeated short-term fixes masking a deeper structural issue. When liquidity is added without clear boundaries or fallback scenarios, the runway meant to protect optionality can narrow instead.

Experienced advisors therefore focus not only on extending time, but on defining the conditions under which liquidity remains supportive. Where deeper analysis is required, an advisory-led review can help determine whether runway extension is an appropriate stabilising measure — and on what terms it remains sustainable.

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What Happens Next?

At Fuse Capital, we’ve been supporting businesses with strategic debt solutions since 2013. Once we receive your details, here’s what happens next:

  1. 1

    Initial Consultation

    We’ll arrange a discovery call to understand your business model, funding requirements, and growth ambitions. This helps us evaluate whether there’s a good strategic fit.

  2. 2

    Information Gathering & Review

    If we proceed, our team will work closely with you to gather key financial and operational information. We’ll conduct a preliminary review to ensure we have a clear and accurate picture of your business.

  3. 3

    Investment Committee Review

    Your opportunity is then assessed by our investment committee. We take a considered, selective approach progressing only where we believe we can deliver real value. If there’s alignment, we’ll recommend the most effective funding strategy tailored to your needs and proceed with next steps thereafter.