As we start 2026, all of us at Scalepoint Advisors are grateful for the great support of our partners, clients and friends that have been with us on this journey to build a company purpose-built for early stage fintech companies.  

Much of our work requires rolling up our sleeves and working side-by-side with founders as they move from idea to execution. Every journey is a little different, but there are some common patterns we see. Our sample size is our client base, which is now in excess of 60 clients, plus the hundreds of prospective clients, credit funds, banks, venture capitalists, angels, advisors and bankers.

The recent boom in private credit has created a great deal of credit funding for our clients. As we have written in prior pieces, we believe equity investment needs to catch up with this dynamic. Or maybe the companies need to be more investable. Either way, the gap continues to exist. Good companies led by gritty determined operators overcome this. It's laborious and it takes years of a founder's most productive years, but it happens.

For those that can find just enough equity to grow, acquire credit funding, acquire clients, and execute, another, insipid risk still remains. The debt. Specifically, is the company prepared, staffed, and ready to digest lending capital? Has the facility and the effect on the business been modeled thoughtfully and correctly, and does everyone involved understand the consequence of what comes when a company with 18-24 months of burn, signs a term sheet for a credit line 5-10 times the amount of cash on hand? Is there a path to raise more equity or other capital to support the expansion of the line into growth?

Of course, some of these questions must be answered by the lender to their satisfaction. But more often, terms that seem fairly innocuous to the borrower at the outset like restricted cash, draw fees, and covenants, become more painful as a company consumes capital to grow. When these issues are unanticipated or “under” anticipated, pain ensues. 

What does this mean to a founder and executive team? Make the investment in a good model, understand the needs of the business that capital will solve, and have a deep understanding of cost of acquisition, unit economics and cash burn in a variety of scenarios. Commit to rigorous processes once the facility is in place including monitoring and detailed reporting and communication with your lending partner. And most of all, find partners that understand the business, and can provide terms and conditions that best feed the business while limiting the possibility of unfortunate consequences down the road. 

At Scalepoint Advisors, we specialize in addressing these issues and bring years of experience to this process. “A stitch in time, saves nine” so reach out if your company is in the process of raising capital or even thinking about.  Our goal is to deeply understand the business holistically, from client persona to unit economics, acquisition channel and costs, staffing, expenses, and specific deal details to support you in this journey. 

Because there is good news. There is a deep, broad market of debt capital and our lending partners are experienced and thoughtful around their work, and they understand the business they are lending to. So borrowers have choices. 

We want to make sure the capital you are raising isn’t the last capital you’ll raise.