PET Food Processing - March 2022 - 8

TRENDS
FUNDING
FACTORS
Understanding when, how and from whom to seek
funding for pet food processing projects.
By Jennifer Barnett Fox | petfoodprocessing@sosland.com
D
Demand for pet food and treats offers more reasons
than ever for manufacturers and suppliers to consider
growing and expanding their footprint. Readily available
equity funds mean many are taking advantage of low interest
rates. But the process of obtaining funding is specific
to the business stage and requires an assessment of
where the business is now and where it wants to be.
This present/future mindset starts with getting a
credit facility in place before funding is needed. This is
when the company is the strongest and the most likely
to receive the most favorable terms, advised Stacey
Huddleston, vice president, business development officer,
Seacoast Business Funding, Boynton Beach, Fla.
But just because a bank is willing to lend the money
doesn't necessarily mean one's business is ready, and a
business does not want to be in a position where it is
forced to sell equity, cautions Tom Barrett, co-managing
director of Barrett Petfood Innovations, Brainerd, Minn.
Having skin in the game
Even with low interest rates, the process of obtaining
financing and/or gap funding isn't a quick process and
8 PET FOOD PROCESSING | March 2022 | www.petfoodprocessing.net
companies should not expect to lock in 100% financing.
Improper planning could also result in encountering
more difficulty in finding less expensive funding and
having to explore more expensive options such as nonbank-owned
financing.
Barrett suggested starting with a strong finance department
to help with financial projections, either inhouse
or partnering with a great accounting firm.
" Don't make a quick decision to take money or sell
equity, " he continued. " Be sure you actually need the financing,
know what your forecasting requires in terms
of financing, and then explore your options. "
Lenders also need to have confidence in whom they
are lending money. This starts with knowing what a
company brings to the table including company financials,
a business plan, a marketing plan if applicable, and
cash flow projections for the next two to three years.
A good starting place is to work with the bank first
and ask how to put the project together, inquire what
the timelines are and do the same with the communities.
Huddleston recommended companies have financials
complete and ready to present to the lending provider
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http://www.petfoodprocessing.net

PET Food Processing - March 2022

Table of Contents for the Digital Edition of PET Food Processing - March 2022

PET Food Processing - March 2022 - Intro
PET Food Processing - March 2022 - 1
PET Food Processing - March 2022 - 2
PET Food Processing - March 2022 - 3
PET Food Processing - March 2022 - 4
PET Food Processing - March 2022 - 5
PET Food Processing - March 2022 - 6
PET Food Processing - March 2022 - 7
PET Food Processing - March 2022 - 8
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https://digital.petfoodprocessing.net/sosland/pfp/pet-food-processing-march-2022
https://digital.petfoodprocessing.net/sosland/pfp/pet-food-processing-december-2021
https://digital.petfoodprocessing.net/sosland/pfp/pet-food-processing-october-2021
https://digital.petfoodprocessing.net/sosland/pfp/pet-food-processing-september-2021
https://digital.petfoodprocessing.net/sosland/pfp/pet-food-processing-june-2021
https://digital.petfoodprocessing.net/sosland/pfp/pet-food-processing-march-2021
https://digital.petfoodprocessing.net/sosland/pfp/2020_12_01
https://digital.petfoodprocessing.net/sosland/pfp/2020_10_01
https://digital.petfoodprocessing.net/sosland/pfp/2020_09_01
https://digital.petfoodprocessing.net/sosland/pfp/2020_06_01
https://digital.petfoodprocessing.net/sosland/pfp/2020_03_01
https://digital.petfoodprocessing.net/sosland/pfp/2019_12_01
https://digital.petfoodprocessing.net/sosland/pfp/2019_10_01
https://digital.petfoodprocessing.net/sosland/pfp/2019_09_01
https://digital.petfoodprocessing.net/sosland/pfp/2019_06_01
https://digital.petfoodprocessing.net/sosland/pfp/2019_03_01
https://digital.petfoodprocessing.net/sosland/pfp/2018_12_01
https://digital.petfoodprocessing.net/sosland/pfp/2018_09_01
https://digital.petfoodprocessing.net/sosland/pfp/2018_06_01
https://digital.petfoodprocessing.net/sosland/pfp/2018_03_01
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