Meeting requirements and expectations
At the scale-up stage, it is likely that the business has some experience of raising finance through debt or equity funding. No matter how familiar a scale up is with raising funds it is critical that the business is in a position to continually keep up with the expectations and requirements of finance providers.
The business plan
Although a business at the scale up stage is likely to have a more sophisticated business plan compared start up or early stage, it is important that financing considerations are addressed. For instance, what are the funding requirements, how will these be met and how will the business pay back its finance providers?
Traditionally equity funding was more readily available for the start-up and early stage sector compared to debt funding. At the scale-up stage, debt funding might start to become available to businesses. Before accepting any funding (be that debt or equity), the terms of the funding agreement should be carefully considered. The services of professional advisors should be obtained where necessary.