Evaluating Financing Options

Health care organizations are receiving financing, even in today's more expensive and more onerous lending environment. That said, lenders aren't the only ones proceeding with caution. As a financial advisor that assists management and boards in evaluating financing options, I see increased diligence on the part of borrowers too. Even where there is a long term banking relationship, many organizations are conducting a competitive RFP process and asking detailed questions about terms and risks associated with the debt. The goal of this article is to review a few common beliefs on how best to evaluate debt options and conduct effective diligence.