2 Mins
Scottish SMEs are operating in a challenging environment, with external pressures such as geopolitical uncertainty, supply chain disruption, changing consumer demand and rising energy costs all having an impact on business performance and funding requirements.
To help businesses navigate these challenges, our Corporate Finance team have produced the SME Debt Funding Guide 2026. The guide provides an overview of our specialist debt advisory services and is designed to generate practical ideas that can be considered at any stage of a business’s journey.
Whether a business is looking to raise finance for investment, fund an exit, or restructure existing facilities to improve cash flow, the guide outlines how our debt advisory team can support the process from start to finish.
Our Debt Advisory Approach
While every situation is assessed on its own merits, the guide explains the typical debt advisory process we follow:
- Initial consultation – reviewing historic and current financial performance, existing debt, cash flow, future plans, and lender relationships.
- Strategy development – identifying suitable funding or restructuring options and preparing robust financial information, including management accounts or integrated forecasts.
- Lender engagement – identifying appropriate lenders or funders active in Scotland and negotiating funding terms with banks, alternative lenders or finance-related creditors.
- Implementation and ongoing support – supporting businesses through the transition, explaining financial covenants and, where required, monitoring performance to maintain lender confidence.
Debt Restructuring and Capital Structure
The guide highlights that many businesses continue to operate with legacy debt facilities that no longer provide sufficient flexibility or sustainability. Restructuring existing debt can help to improve cash flow, reduce financial strain, and create headroom for day-to-day operations or future growth.
It also explores the importance of capital structure optimisation, ensuring the right balance of debt and equity is in place, with appropriate products and lenders that are fit for purpose and aligned with the business’s risk profile and objectives.
Funding Strategy and Lender Relationships
Developing a clear funding strategy is essential when raising capital. The guide outlines how funding may be sourced through traditional bank lending, alternative lenders, private equity, or family offices, depending on the specific requirement. Strategies are tailored to support growth initiatives, mergers and acquisitions, or significant capital expenditure projects.
The guide also addresses lender relationship management, including the importance of understanding financial covenants from the outset. Well-designed covenants can act as early warning indicators, allowing time to identify issues and take corrective action, whereas poorly structured covenants can create unnecessary challenges.
Tailored Support
All debt advisory solutions are tailored to individual business requirements, with a focus on securing appropriate funding on terms that align with business objectives. As we offers a full spectrum of accountancy services, debt advisory can also be combined with corporate finance and tax advice where appropriate.