Finance Type
A term loan is built around a defined amount, defined use of funds and an agreed repayment profile.
Clear milestones make it easier to compare the cost, timing and repayment impact of a project.
Term loans can be relevant when a provider is funding a known purchase, fit-out, technology program, expansion milestone or other investment that can be explained upfront.
A term loan suits a defined investment. Working capital is designed around operating timing. Some projects need both, so keep the purposes separate in the funding plan.
Include quotes, implementation milestones, management accounts, registrations, ownership details, forecast assumptions and downside cases. This supports a more disciplined conversation without suggesting approval.
Keep the investment amount distinct from working capital, tax obligations and contingency so the repayment story remains understandable.
Model the downside case if implementation is late, utilisation ramps slowly or the project costs more than the original quote.
