Executive summary
Prepare for financing in five steps: confirm the business case and cost estimate are at financing-grade accuracy, assemble the standard documentation set a financier will request, decide the target financing structure and instrument mix, identify the collateral and guarantee position available, and stress-test the repayment case against a downside scenario. This sequence should be substantially complete before the first financier conversation, not built in response to their requests.
The situation this guide addresses
- Business case cost estimate is still order-of-magnitude
- Standard financier documentation has not been assembled
- No decision has been made on instrument mix or structure
- Collateral and guarantee position is unclear
- Repayment case has not been tested under a downside scenario
- Multiple financing conversations are starting without a common information package
The framework, step by step
Step 1 — Confirm financing-grade cost accuracy
Move the estimate to budget or definitive class before approaching financiers.
Step 2 — Assemble the standard documentation set
Business case, technical description, permits, offtake or contract evidence, and financials in one package.
Step 3 — Decide the target structure
Determine the intended mix of debt, equity, leasing or blended instruments before negotiation.
Step 4 — Identify collateral and guarantee position
Establish what security the sponsor can offer and what gap remains.
Step 5 — Stress-test the repayment case
Model debt service coverage under reduced demand and delayed ramp-up.
Comparison table
| Element | Ready | Not ready |
|---|---|---|
| Cost estimate accuracy | Budget or definitive class | Order-of-magnitude only |
| Documentation set | Assembled and internally reviewed | Scattered or incomplete |
| Structure decision | Target instrument mix agreed internally | Undecided |
| Collateral position | Identified with known gaps | Not assessed |
| Repayment stress test | Modelled under downside scenario | Base case only |
Financing readiness checklist
Risks and governance considerations
- Financiers assess the sponsor's organisational capacity, not only the project's numbers
- Incomplete documentation is the most common cause of delay in early financing discussions
- The intended instrument mix affects covenant structure and should be decided before term sheets are sought
- Collateral gaps are best identified early, when alternative structures can still be considered
- This material is educational; sponsors should take independent financial and legal advice before committing to a structure
What to prepare
- Financing-grade business case and cost estimate
- Standard documentation package (technical, legal, financial)
- Internal decision on target financing structure
- Collateral and guarantee assessment
- Downside repayment stress test
What to measure
Frequently asked questions
Should we approach multiple financiers at once?
Preparing a single complete information package first makes parallel conversations faster and more comparable, though the choice of route depends on the project.
Do we need a completed business case before talking to financiers?
A substantially complete business case with financing-grade cost data is expected before serious financing discussions begin.
Is this guide financial advice?
No; it describes preparation steps only. Sponsors should obtain independent financial and legal advice for their specific structure.
Related investment and financing knowledge
Project Financing Knowledge
The Documentation Every Financing Process Requires
Project Financing Knowledge
Assessing Your Project's Loan Readiness
Project Financing Knowledge
Preparing a Project to Be Fundable
Project Lifecycle Stage
Financing Strategy
Project Financing Knowledge
Structuring Commercial Project Finance
Continue on the platform
Educational, supplier-neutral and financing-neutral
Global B2B Group does not sell equipment and does not represent lenders, export credit agencies or development banks. This material is published to help industrial organisations plan, structure and prepare capital projects. It is general information for decision-making, not financial, legal or tax advice.