10 Core Beliefs about Strategic Capital Sourcing

Francisco Becerra • Apr 05, 2024

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1. Preparation for strategic capital sourcing should be a fundamental priority of the CFO’s financial planning.


2. Organizing a portfolio of key corporate documents for strategic capital engagements should be an ongoing corporate process, not a one-time event.


3. Market opportunities (or downturns) can arise at any time; companies should always be ready to adjust their strategic capital allocation. Being prepared boosts competitiveness and makes more opportunities feasible.


4. Companies that prepare access to flexible strategic capital sources can capitalize on unexpected opportunities and will benefit the most.


5. The CEO and the CFO should focus on driving forward the core business without being distracted by the capital sourcing process.


6. Capital sourcing is not a core part of a business, but it is a vital financial function that support strategic initiatives and that can be outsourced.


7. Capital sources prioritize maximizing their financial return from your company; therefore, it is crucial to turn-around that power structure to your benefit.


8. No two capital sources are alike in rates, terms, risk appetite or vision for your industry. Thus, it is important to purposefully steer any relationship with capital source towards benefiting your company’s strategic objectives.


9. To enhance security, it is crucial to clarify and negotiate where possible all legal financial obligations that are included with each capital sourcing event. CORNER provides help for that.


10. Having only one offer of capital does not constitute a choice; CORNER prefers to obtain a minimum of three offers.


Bonus: #11. Right now your company is highly likely to be paired with a funding source that is the wrong-match.


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