Elementum

Bridge-Financing Decision.

Arrange the right short-term financing to bridge a real gap, sized to the forecast, with a banker and the board, rather than cutting programs or panic-fundraising.

The third step of managing the cash-flow gap, only where a real shortfall was found.

Part A. The right tool

For a reimbursement gap, short-term financing sized to the gap, a line of credit against your receivables is the common tool, arranged with a banker or a finance-minded board member. The broader financing and reserves work lives in financial health and management. Financing considered, and sized to the forecast gap

Part B. The board decision

Taking on debt or a credit line is a board act. Board authorized on (date)

The rule, which is the point of this guide: never bridge a timing gap by cutting a program that is paying its way, or by emergency-fundraising for money you are already owed. That treats a delay as a loss and turns a manageable gap into a real one. If unsure whether you face a delay or a loss, return to the diagnostic, which tells them apart.

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