More money for the same problem

A business often seeks new financing when what it really needs is a new structure.

Capital is an accelerator: it amplifies what already exists. If the model works, money adds revenue and capacity. If the business is losing money, it accelerates the losses. A shortage of money is usually a symptom: an unprofitable product, weak controls, dependence on one customer, a dispute between partners. And new capital brings a new interest into the business, a bank or investor that changes how decisions are made.