Most businesses do not have a debt problem. They have a debt structure problem.
We review the facilities you already hold, establish what your balance sheet should be carrying and on what terms, and then negotiate it into place. Independent review of your existing facilities. Structure before product. Lenders approached last, not first.
Confidential and without obligation. No credit application is made at review stage.
What is debt advisory?
Debt advisory is the process of reviewing a business's existing borrowing, deciding what funding structure the business actually needs, and then going to the lending market to put that structure in place on the best available terms.
It covers four things in practice: assessing whether your current facilities are fit for purpose, deciding how much debt the business can sustainably carry, selecting the right type of facility for each funding need, and negotiating pricing, security and covenants with lenders.
"The distinguishing feature of advisory work is that it starts before the product decision. A broker begins with a funding requirement and finds a lender to meet it. An adviser begins with the balance sheet and the business plan, and is prepared to conclude that the requirement is wrong, that the timing is wrong, or that the business should not borrow at all."
Traditionally this work sat with corporate finance teams at accountancy firms, aimed at mid-market transactions and delivered on a retainer. Spark Finance applies the same discipline to UK SMEs, without a minimum deal size.
Debt advisory is not debt help
Debt advisory is about structuring and raising commercial debt for a solvent, trading business. It is a different service from debt counselling, insolvency advice or creditor negotiation.
If your business is insolvent, facing enforcement action, or cannot meet its liabilities as they fall due, speak to a licensed insolvency practitioner first.
What we do not do
Being clear about scope matters more than appearing to do everything.
We are a credit broker, not a lender. We do not lend our own money and we do not make credit decisions.
No regulated advice. We do not provide regulated financial advice, insolvency advice or debt counselling.
No guaranteed approval. Every application is subject to lender assessment, status and security.
How we approach the work
Rigorous discipline applied to SME finance. These four principles define an advisory engagement.
We will tell you not to borrow
The most valuable outcome of a facility review is sometimes that your existing terms are already competitive, or that the requirement should be solved operationally rather than with debt. We say so. An adviser who never reaches that conclusion is not advising.
Structure before product
The first questions are how much the business can sustainably service, what should be secured and what should not, and how repayment should map to the cash cycle. Which lender provides it is the last question, not the first.
Terms, not just rate
Headline rate is the most visible term and rarely the most expensive one. Covenant definitions, security scope, fee structure, prepayment terms and headroom determine what the facility actually costs you and what it stops you doing.
Independence, stated plainly
Spark Finance is an FCA authorised credit broker. Where a facility completes, we may receive a commission from the lender, and we disclose the amount and basis before you accept any offer. We are not tied to any lender and hold no volume commitments that would favour one over another.
When businesses come to us
Debt advisory is worth the conversation at specific moments, not continuously. If more than one of these applies, it is worth reviewing the structure before the next renewal forces the decision for you.
Facilities up for renewal
Your term loan, overdraft or invoice finance agreement is within twelve months of expiry and you want to know whether the market has moved since you signed.
Growth outrunning working capital
Sales are rising, but cash is tied up in stock, work in progress or debtor days. The facility that suited last year's turnover no longer covers this year's.
Paying more than you need to
Rates, fees or covenants were set when your business looked different. Refinancing at current terms could release meaningful annual cost.
Funding an acquisition or buyout
You need a debt package that supports a transaction without over-gearing the balance sheet or losing control of the business.
Buying assets or property
A single large purchase can be funded several different ways. The right structure depends on the asset, the term and what you want to protect.
Facilities spread across lenders
Multiple overlapping agreements, duplicated security and no clear view of total cost. Consolidation often reduces both cost and admin.
What our debt advisory covers
Four areas of work. Most engagements involve two or three, and the review in the first determines which.
Debt review and benchmarking
Before anything is arranged, we map what you already have. We then benchmark that against what lenders are currently offering so you can see the gap in pounds rather than in principle.
- Full facility and security audit
- All-in cost of borrowing calculation
- Covenant headroom assessment
- Market benchmarking against current lender terms
Refinancing and restructuring
Replacing existing borrowing with better terms, a longer runway or a structure that better matches how your business generates cash. This is the most common reason businesses come to us.
- Refinancing existing term debt
- Consolidating multiple facilities
- Extending term to reduce monthly cost
- Renegotiating covenants and security
- Moving from an unsupportive incumbent lender
Raising new debt
Securing new facilities for growth, acquisition, asset purchase or working capital. We package the application properly, present it to the lenders most likely to say yes, and run options side by side.
- Growth and expansion capital
- Acquisition and management buyout funding
- Asset and equipment purchase
- Commercial property and development
- Working capital and seasonal facilities
Working capital and liquidity
The structural fix for businesses whose cash is trapped in the operating cycle. Sized against your actual debtor and stock profile rather than a generic multiple.
- Invoice finance and selective discounting
- Trade and supply chain finance
- Stock and inventory funding
- Revolving credit and flexible overdraft alternatives
- Seasonal and contract-linked facilities
Where our expertise sits
Most funding requirements can be met three or four different ways, and the choice materially affects cost, security and flexibility. We work across:
How a Spark Finance debt advisory engagement works
Facility review
A structured conversation about the business, its plans and its cash cycle, followed by a review of your current borrowing, security and covenants. Confidential and without obligation.
Structure and strategy
We set out what the right structure looks like, how much the business can sustainably service, and which facility types fit each requirement. You get this in writing before anything goes to market.
Market selection
We identify the funders that will genuinely engage with a business of your size, sector and security position. Our matching infrastructure cross-references your profile against lenders' live criteria. Your case goes to a small number of funders chosen deliberately, not circulated around the market.
Competitive process
We package and present your case to the shortlisted lenders, manage their questions, and bring the offers back to you compared on a like-for-like basis. Rate, fees, term, security and covenants, in one view.
Completion and drawdown
We manage the process through underwriting, valuation and legals to drawdown, and stay involved for renewals and future requirements.
Sectors we work in most
Sector matters because lenders price it differently. A haulage business and a recruitment agency with identical turnover will see very different terms, and knowing which lenders are comfortable with your SIC code saves weeks.
Debt advisory FAQs
What does a debt adviser actually do?
A debt adviser reviews your existing borrowing, works out what funding structure the business needs, and then negotiates with lenders on your behalf to put it in place. The value sits in three places: knowing which lenders will fund your specific profile, presenting the case properly, and creating competitive tension so you are not accepting the first offer you see.
Is my business too small for debt advisory?
We do not set a minimum facility size. What determines whether the work is worth doing is not the size of the borrowing but whether there is a structural question to answer: facilities that no longer fit the business, cost that has drifted from the market, or a funding requirement that could be met several different ways. Accountancy corporate finance teams generally reserve this service for larger transactions and charge a retainer for it, which is why smaller businesses are usually told to go straight to their bank. That is often the most expensive route available to them.
How long does a debt advisory engagement take?
Plan for three to six months from first conversation to drawdown on a secured facility, and longer where property valuation or a transaction timetable is involved. The review and structuring work typically takes two to four weeks, the market process another three to six weeks, and credit, legals and security the balance. Rushing a refinance is how businesses end up accepting the first offer rather than the right one.
When should we start, relative to a renewal date?
Nine to twelve months before your facility expires. That leaves room to run a proper process and, importantly, to walk away from terms you do not like. Businesses that start at ninety days have no leverage, because the incumbent lender knows they have nowhere to go.
Will this affect our credit file?
No credit application is made during the review and structuring stages. When we approach lenders, initial soundings are made on the basis of your business profile rather than a formal application. A formal credit search happens only once you have decided which lender to proceed with, and only with your consent.
What if our current lender offers to match the terms we find?
That happens reasonably often, and it is a legitimate outcome. Staying put on improved terms is a successful engagement. What matters is that you are negotiating with evidence of what the wider market will do, rather than accepting a renewal letter on trust.
Should I just talk to my bank?
Your bank is one lender with one set of criteria and one price. It may well be the right answer, and if it is, we will tell you. But you cannot know whether a rate is competitive without seeing what else is available, and banks now account for a minority of UK SME lending.
Do you help with existing debt we are struggling to service?
We can look at refinancing or restructuring facilities where the business is solvent and trading. Where a business cannot meet its liabilities as they fall due, the right first call is a licensed insolvency practitioner rather than a broker, and we will say so.
What information do you need to start?
For the initial review: your last two years of filed accounts, recent management accounts, current facility agreements and a brief description of what you are trying to achieve. If you do not have all of it to hand, start the conversation anyway.
Are you regulated?
Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority as a credit broker, not a lender, under firm reference number 958123. You can verify this on the FCA register at register.fca.org.uk.
Start with a facility review
A confidential conversation about your existing facilities, with no obligation to proceed. You will come away knowing what your borrowing costs in total, what the wider market is currently offering businesses like yours, and whether the difference justifies going to market.
Confidential and without obligation. FCA authorised credit broker. All facilities are subject to status, lender assessment and security. Spark Finance does not provide regulated financial, insolvency or debt counselling advice.