Business & Funding Life Cycle

1. Business & Funding Life Cycle

So let's discuss now the business life cycle. And you may have seen a diagram like this before, where a business transitions from initial launch through growth all the way to maturity, and we've graphed some line items like sales, cash flow and profit, for example. Let's take this diagram now and understand that obviously as the company grows towards maturity, the business risk is dropping during that time. What we're interested in now, though, is how its access to debt funding increases as the business risk drops, lenders are more willing to lend capital to the company, so the debt funding access increases over time.

2. Let's practice!

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