Capital Readiness Assessment
Is Your Deal Ready for Capital?
Before approaching lenders, every financing opportunity must answer a few fundamental questions.
Many transactions fail because sponsors approach the capital markets before the deal is properly structured.
The Capital Readiness Assessment helps determine whether a transaction is positioned for financing.
Six Questions Every Lender Will Ask
1. What is the capital request?
• Loan amount
• Purchase price or project cost
• Equity contribution
If the capital structure is unclear, lenders cannot evaluate the opportunity.
2. Who is the borrower?
Lenders evaluate sponsor experience carefully.
Key considerations include:
• Industry experience
• Ownership structure
• Track record
3. What is the repayment story?
Every loan must have a clear repayment strategy.
This may include:
• Stabilized cash flow
• Refinance strategy
• Asset sale
• Business growth
4. What financial information is available?
Lenders typically review:
• Financial statements
• Rent rolls or revenue history
• Operating projections
• Tax returns
Incomplete documentation slows the financing process.
5. Does the requested leverage align with the market?
Many financing requests fail because leverage expectations exceed what lenders will approve.
Understanding realistic leverage expectations is critical.
6. Is the deal aligned with the right underwriting criteria?
Banks, credit funds, and private lenders all evaluate transactions differently.
If a deal is not structured in a way that aligns with common underwriting expectations, it can be difficult to interpret and move forward... regardless of its underlying strength.
Capital Readiness Results
Capital Readiness Results
After reviewing the six areas above, most deals fall into one of three categories:
Capital Ready
The transaction appears positioned for lender discussions.
Structuring Required
The opportunity may be financeable but needs adjustments to the capital structure or presentation.
Not Yet Financeable
Additional work may be required before lenders will evaluate the opportunity.
Request a Capital Review
If you would like MCS Capital to review your transaction and provide feedback on capital readiness, submit your deal information below.
Our team will review the opportunity and determine whether capital advisory or deal packaging services may be appropriate.
Capital Advisory Note
Many sponsors choose to work with MCS Capital to prepare their transaction for the capital markets through a structured deal packaging and capital advisory process.
This process helps ensure lenders receive a clear and complete financing package.
I Need a Capital Readiness Review
Get lender-level clarity before you ever ask for capital.
Areas Covered
Locally: Indianapolis, Fishers, Carmel, Noblesville & Westfield. We Also Serve All of Indiana and All Business Nationally
