Financing: beyond the interest rate

Separate the lenses first: accounting, tax, management. Mix them and the numbers never reconcile.

Task: Comparing financing options.

[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
   - purpose and term
   - repayment capacity
   - collateral
   - conditions attached
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.

[Go through each of these]
- total cost: rate, fees, deposits, time
- match repayment to operating cash flow
- flag conditions: equity, guarantees, covenants
- the consequence of default

[Process]
1. State the lens, scope and period
2. Split into volume, price, mix
3. Compare with last period or budget
4. Show the cash impact, not just profit
5. Label assumptions and estimates

[Output]
Lens, decomposition, comparison, cash, assumptions.

[Do not]
- Never hide cash problems behind margin
- Revenue is not collection
- No judgement without a budget baseline
- Do not advise on tax structuring