When we talk to business owners and their advisors about raising capital, the conversation often starts with a simple, binary question:
“Should we raise debt or equity?”

At first glance, this makes sense. Debt and equity are fundamentally different, requiring different strategies, conversations, and audiences. The processes don’t just look different—they feel different. But in practice, viewing capital raising as an either/or decision can be a costly mistake. It can limit your options, reduce leverage in negotiations, and ultimately lead to suboptimal outcomes for your business. At Capvia, we work with companies at every stage of the business cycle—from early-stage growth to
mature businesses to complex turnarounds. Across all these situations, one truth remains constant:
The most successful companies don’t just raise capital. They plan their capital.

The Problem with Sequential Capital Raises
Too often, businesses pursue capital in sequence:

1. Raise equity first,
2. Then, later on, consider debt—or vice versa.

The problem with this approach is that equity and debt aren’t independent decisions. Each impacts the other:
 Equity investors want to know how you’re thinking about leverage and how additional debt might affect growth or liquidity.
 Lenders want to understand your equity position and whether there’s enough long-term capital to support repayment.
When you approach capital raises sequentially, you may unintentionally create gaps that hurt your negotiating position—or worse, leave you with a capital structure that doesn’t support your long-term strategy.

An Integrated Approach to Capital Strategy
The key is to understand what both sides are looking for and structure your plan accordingly. Debt providers and equity investors have different priorities, but their goals can complement each other when managed correctly. (A more detailed post on Debt vs Equity can be found here: https://capvia.io/debt-vs-equity-what-are-each-typically-used-for/)

When you think about capital holistically:
 Your debt raise becomes more attractive because lenders see that you have thought about your equity needs (either by raising or reinvesting) – a stable equity base reduces their risk.
 Your equity raise becomes more compelling because investors see a thoughtful use of leverage that can accelerate returns.
 You, as the business owner, gain flexibility and clarity about how each dollar of capital supports growth.
This integrated approach doesn’t just lead to better deal terms—it helps you build a stronger, more resilient business.

Why This Matters Now
Whether you’re in the middle of a raise, considering one, or even feeling like the timing isn’t right, the best time to plan is before you have to act under pressure. Capital markets move quickly, and opportunities can disappear as fast as they appear. Having a well-
defined strategy ensures you’re ready to act decisively when the right lender or investor comes along.

Our Offer: A Strategic Capital Assessment

At Capvia, we believe every business should have a clear, actionable capital strategy—not just when raising funds, but as part of ongoing business planning. That’s why we offer a Capital Readiness Assessment, a deep dive into your company’s current position and future needs. This isn’t a sales pitch or a generic checklist. It’s a strategic review designed to help you:

 Understand where you stand today with lenders and investors,
 Identify potential risks and opportunities, and
 Map out a capital plan that supports both immediate needs and long-term goals.

This is a critical step every company should take before entering the market—and one we’re proud to
provide as part of our mission to build better businesses.

Bottom line: Raising capital shouldn’t be about choosing between debt or equity. It’s about aligning
both sides of the table to create the best possible outcome for your company.

If you’re ready to gain clarity and confidence in your capital strategy, reach out. Let’s make sure you’re
positioned for success—today and in the future.