Demand, regulation and operating costs can change during the life of a loan. A useful plan identifies which changes would most affect the business's ability to repay.
Consider whether spending can be phased and whether the project still works under a more cautious forecast. Flexibility is valuable when assumptions are uncertain.
Review commitments before taking on additional debt. Existing obligations continue even when a new opportunity appears.
Key takeaways
- Demand, regulation and operating costs can change during the life of a loan.
- Consider whether spending can be phased and whether the project still works under a more cautious forecast.
- Review commitments before taking on additional debt.
