What Is Debt Capacity? (How Much Can You Afford?)

4/23/2024

Solution-driven Questioning in the Planning Stage

Determining exactly how much financing can be raised for your project is a critical part of the funding process. As important, identifying all your options. For instance, have you considered government tax credits and energy-related subsidized programs to fund your project?

Rigorous research, expert analysis, and financial modeling are hallmarks of our process, starting with our earliest conversations. The goal is to establish a path forward, from project-specific challenges to successful project completion. In short, we start the process by asking the right questions.

Capital Project Feasibility Questions

• How much debt can you carry—for the short and long-term?

• Which programs and incentives are you eligible?

• How can we reduce project costs to make them feasible?

• What real estate, legal, and tax expertise will you need?

• How will your success story be written to attract lenders and investors?

Analytical Financial Modeling and Planning

ThinkForward is an independent financial advisor and critical partner in developing financing solutions for all phases of your project—from conception to completion and more. We’ll bring clarity to understanding your project’s debt capacity and confidence for future expansion and long-term resiliency to market disruptors.

We employ numerous, highly effective analytical financial models capable of addressing your project’s full lifecycle. For instance, to determine project debt capacity, we evaluate a variety of financing structures and tax and economic development strategies.

We also guide you through the application, approval, and financing processes. Our substantial network of real estate project consultants and attorneys assist you with the planning phase of the project and determine real estate options and strategies.

Ultimately, we provide you with multiple, good financing alternatives.

It’s important to consider all your financing options. Operational financing models (cash flow analysis, preparation of operating proforma) are critical project planning tools. Likewise, debt capacity evaluations provide additional clarity on your project’s financial feasibility and all existing financial resources.

To assist you in understanding the appropriate amount of debt to take on to fund your capital project, we develop a series of financing programs and market reports. Finally, a comprehensive project financing plan serves as a step-by-step guide to securing project funds.

Debt Capacity Toolkit

• Identification of funding options and structures

• Side-by-side comparisons of options

• Initial debt service schedules and coverage analysis

• Capital grants and incentives research

You Have a Project.
You Have Questions.
You Have a Funding Need.
A 10-minute conversation can go a long way toward answering your questions. We may also be able to connect you to the right resources and people to help you.
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Insights

What Is Debt Capacity? (How Much Can You Afford?)

Solution-driven Questioning in the Planning Stage

Determining exactly how much financing can be raised for your project is a critical part of the funding process. As important, identifying all your options. For instance, have you considered government tax credits and energy-related subsidized programs to fund your project?

Rigorous research, expert analysis, and financial modeling are hallmarks of our process, starting with our earliest conversations. The goal is to establish a path forward, from project-specific challenges to successful project completion. In short, we start the process by asking the right questions.

Capital Project Feasibility Questions

• How much debt can you carry—for the short and long-term?

• Which programs and incentives are you eligible?

• How can we reduce project costs to make them feasible?

• What real estate, legal, and tax expertise will you need?

• How will your success story be written to attract lenders and investors?

Analytical Financial Modeling and Planning

ThinkForward is an independent financial advisor and critical partner in developing financing solutions for all phases of your project—from conception to completion and more. We’ll bring clarity to understanding your project’s debt capacity and confidence for future expansion and long-term resiliency to market disruptors.

We employ numerous, highly effective analytical financial models capable of addressing your project’s full lifecycle. For instance, to determine project debt capacity, we evaluate a variety of financing structures and tax and economic development strategies.

We also guide you through the application, approval, and financing processes. Our substantial network of real estate project consultants and attorneys assist you with the planning phase of the project and determine real estate options and strategies.

Ultimately, we provide you with multiple, good financing alternatives.

It’s important to consider all your financing options. Operational financing models (cash flow analysis, preparation of operating proforma) are critical project planning tools. Likewise, debt capacity evaluations provide additional clarity on your project’s financial feasibility and all existing financial resources.

To assist you in understanding the appropriate amount of debt to take on to fund your capital project, we develop a series of financing programs and market reports. Finally, a comprehensive project financing plan serves as a step-by-step guide to securing project funds.

Debt Capacity Toolkit

• Identification of funding options and structures

• Side-by-side comparisons of options

• Initial debt service schedules and coverage analysis

• Capital grants and incentives research

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Challenge No. 1

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Solutions

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