How to Secure Debt Financing in a Challenging Market: 5 Proven Tips for CFOs
With capital harder to access and lenders more selective, business leaders must act strategically. These five tips will help you navigate a challenging market and improve your chances of securing financing.
In Today’s Challenging Market, Preparation Is Everything
While many lenders still claim to be actively lending, the reality tells a more complicated story. Private credit loan volumes may be up, but those dollars are going to fewer companies — mostly top performers.
According to a recent analysis from Hamilton Lane, there’s a $1.4 trillion gap between available private equity capital and credit origination capital. Combine that with over $600 billion in maturing loans through 2028, and businesses are facing a $2 trillion funding shortfall in a challenging market. This means lenders are now far more selective than in past years.
So, what does that mean for companies not on the Fortune 500 list? There’s still a path to debt financing — but only if you’re well-prepared. Here are five key tips for CFOs looking to secure funding in today’s tight credit environment.
1. Start When You Don’t Need the Money
One of the biggest mistakes companies make in a challenging market is waiting too long. The best time to secure debt is when your business is performing well and doesn’t urgently need it. Lenders are more comfortable working with companies that are growing steadily and have financial runway.
If you’ve recently added a strong equity partner, are showing consistent growth, or are planning an acquisition — start the debt process now. Waiting until you’re under pressure limits your options and weakens your negotiating position.
2. Pick the Right Lender
Debt is a long-term relationship. Picking the wrong lender can cost you both time and money. Make sure your lender is a good fit by:
- Checking References: Talk to other companies they’ve financed recently.
- Understanding Their Goals: Can they support your business over the next five years?
- Working with an Adviser: A knowledgeable adviser can help identify lenders aligned with your growth plan — and steer you away from dead ends.
In a challenging market, the right lender relationship can make all the difference.
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3. Be Prepared — But Keep It Simple
Different lenders will ask for different information, but there are some common basics you should always have ready:
- Last two years of financial statements
- Forecasts for the next three to five years
- Cap table and corporate documents
- A short, clear pitch deck (no more than 20 minutes) that covers your business, team, financials, and loan purpose
Avoid over-preparing with unnecessary detail. Focus instead on presenting a strong, clear case that shows how your company can repay the loan — not why it will be the next unicorn.
4. Know Your Numbers Inside Out
Be ready to explain every line of your financials — past and future. What’s driving your growth? How have recent economic or political shifts affected performance?
Show lenders exactly how this loan will be used and what growth it will unlock. Your forecasts should be realistic — not too conservative, not overly ambitious. Most importantly, prove that you can repay the loan without relying on future equity funding or refinancing.
In a challenging market, lenders care more about your fundamentals than big promises.
5. Expect a Tougher Process
Even under ideal conditions, securing debt can be a slow, unpredictable journey. You’ll hear “no” when you expected a “yes.” Offers might not match your expectations. And due diligence can drag on.
Stay focused, responsive, and professional. The more you engage proactively, the more confidence you’ll build with lenders. The process may be tough, but in a challenging market, those who prepare well and move smartly stand the best chance of securing the right deal at the right time.