Knowledge base

Short, practical guides on how capital providers in the Caribbean assess a financing request — and a glossary of the terms you will meet along the way.

Raising capital

Types of capital explained

Debt, equity, project finance, hybrid instruments and grants — what each one costs you, who provides it in the Caribbean, and when it fits.

6 min read

Debt facility types: which structure to ask for

Term loans, working capital lines, invoice discounting, trade finance, asset finance and overdrafts, and how each one is repaid.

5 min read

Collateral and security in the Caribbean

What providers accept as security, how it is valued, and the alternatives when you have little to pledge.

4 min read

Readiness

What capital readiness actually measures

The five dimensions behind your readiness score and the practical steps that move each one.

4 min read

Documents

The documents capital providers expect

The ten-document checklist behind every Dossier request, why each one is asked for and what makes one acceptable.

5 min read

Using Dossier

How Dossier reads your documents

What the AI extraction step pulls out, where confidence comes from, and why you confirm every figure.

3 min read

What a lender pack contains

The difference between the condensed pack and the full package, and how a provider reads each section.

3 min read

Finance basics

Debt service coverage and the ratios lenders run

DSCR, gearing, current ratio and interest cover — how each is calculated and the levels that usually pass.

4 min read

Glossary

Financials

Revenue: Total income from sales of goods or services before any costs are deducted.
Gross profit: Revenue less the direct cost of producing what you sold.
EBITDA: Earnings before interest, tax, depreciation and amortisation — a proxy for the cash the trading business generates.
Net profit: What remains after every expense, including interest and tax.
Working capital: Current assets less current liabilities; the money tied up in day-to-day trading.
Cash conversion cycle: The number of days between paying suppliers and collecting from customers.
Receivables ageing: A breakdown of unpaid customer invoices by how long they have been outstanding.
Payables ageing: The same breakdown for what you owe suppliers.

Ratios

DSCR: Debt service coverage ratio: EBITDA divided by total debt payments. Most lenders want at least 1.25x.
Gearing: The proportion of the business funded by debt rather than equity.
Current ratio: Current assets divided by current liabilities; a short-term liquidity test.
Interest cover: EBITDA divided by interest expense.
Loan to value (LTV): The loan amount as a percentage of the appraised value of the security.

Capital

Debt financing: Borrowed capital repaid with interest; ownership is unaffected.
Equity financing: Capital raised by selling a share of the business; no repayment, but dilution.
Mezzanine: Subordinated debt that ranks behind senior lenders and prices higher, often with an equity kicker.
Convertible note: A loan that can convert into shares on agreed terms, usually at a future raise.
Preference shares: Shares with a priority claim on dividends or proceeds ahead of ordinary shares.
Project finance: Funding repaid from the cash flow of a specific project rather than the sponsor's balance sheet.
Blended finance: Concessional or development capital combined with commercial money to lower the overall cost or risk.
Term sheet: A non-binding summary of the main commercial terms of a proposed facility or investment.
Tenor: The length of time until a facility must be fully repaid.
Moratorium: An agreed period at the start of a facility where principal repayments are deferred.

Security

Collateral: Assets pledged to a provider that can be sold if the facility is not repaid.
Debenture: A charge over the assets of a company, fixed on named assets or floating over the rest.
Chattel mortgage: Security taken over movable assets such as vehicles or equipment.
Personal guarantee: A promise by a director or shareholder to repay personally if the business cannot.
Forced-sale value: The discounted amount a provider assumes an asset would fetch in a quick disposal.

Process

Due diligence: The provider's verification of your business, documents and figures before committing.
Credit committee: The internal body at a provider that approves or declines a request.
Covenant: A condition in a facility agreement, such as maintaining a minimum DSCR.
Drawdown: The act of taking the funds once conditions precedent are satisfied.
Capital readiness: How prepared a business is for a provider to make a decision without further information requests.
Lender pack: The structured document set a provider needs to assess a financing request.