It is simply not enough to have sufficient financing. You need to have the knowledge and planning ability to manage it well. That means avoiding such common mistakes as securing the wrong type of financing, overestimating or underestimating the amount required or the cost of borrowing money, and then finding it difficult to repay. You can obtain the best terms when you anticipate you needs rather than looking for money in a crunch. All money needs have risks, and the degree of risk will affect cost and available alternatives.
Needs are most critical during stages of transition.
The three broadest are start-up, growth and maturity. Any lender will require that capital be requested for very specific needs. Depressed, stable or growth conditions require different approaches to money needs and sources. Those businesses that prosper while others and the market are in decline will often receive better economic terms when obtaining funding. Seasonal needs for financing generally are short term.