Why Sophisticated Borrowers Secure Capital Relationships Before They Need Capital
Sophisticated borrowers rarely wait until they urgently need financing to begin building capital relationships. In this article, Don McClain, Founder & Principal of Fast Commercial Capital, explains w
One of the most common mistakes borrowers make is waiting until they urgently need financing before beginning the search for capital.
A loan maturity approaches.
An acquisition opportunity appears.
A business needs working capital to support growth.
Only then does the borrower begin contacting lenders.
By that point, timelines are compressed and financing options may be limited.
Over the years working with investors and entrepreneurs through Fast Commercial Capital, I’ve seen a clear pattern: the borrowers who consistently close complex transactions are usually the ones who build capital relationships long before they actually need capital.
This concept is often called relationship capital, and it has become one of the most important advantages sophisticated borrowers have in today’s financial markets.
Transactional Borrowers vs Strategic Borrowers
Borrowers generally approach capital in one of two ways.
The first group approaches financing transactionally.
These borrowers search for capital only after a deal is already underway. The acquisition agreement is signed, the loan maturity is approaching, or the closing timeline is tight.
Because financing is urgent, negotiating leverage is often limited.
The second group approaches capital strategically.
Strategic borrowers develop relationships with capital advisors, lenders, and funding partners months—or even years—before a transaction requires financing.
By the time capital is needed, the relationships are already in place.
According to Don McClain, Founder & Principal of Fast Commercial Capital, the difference between these two approaches often determines how smoothly transactions ultimately close.
Relationship Capital in the Modern Capital Markets
Relationship capital refers to the trust and familiarity that develops between borrowers and capital providers over time.
When lenders already understand a borrower’s experience, portfolio strategy, and track record, underwriting becomes easier and decisions move faster.
This is especially important in today’s capital markets, where financing sources have expanded well beyond traditional banks.
Borrowers may now work with:
• private credit funds
• bridge lenders
• family offices
• specialty finance companies
• structured capital providers
Navigating this landscape often requires experience and relationships.
Firms such as Fast Commercial Capital help borrowers structure financing strategies and identify appropriate capital sources for each transaction.
Instead of approaching lenders randomly, borrowers benefit from a coordinated capital strategy.
Speed and Certainty of Execution
In both commercial real estate and business acquisitions, speed often determines whether a transaction closes.
Sellers prefer buyers who demonstrate certainty of execution.
Borrowers who already have capital relationships in place are often able to move much faster because lenders are already familiar with their experience and financial profile.
Borrowers who begin searching for financing only after signing a contract often face delays.
Preparation can make the difference between closing a deal and losing an opportunity.
Why Advisory Relationships Are Becoming More Common
Many sophisticated borrowers now work with capital advisors rather than approaching lenders directly.
Capital advisors help borrowers structure financing strategies, identify appropriate lenders, and coordinate capital introductions.
At Fast Commercial Capital, these advisory relationships often begin long before financing is required.
Borrowers may engage advisors through advisory retainers, allowing capital strategy to be developed well in advance of a transaction.
The retainer is typically credited toward the closing fee once financing occurs, making it part of the transaction rather than an additional cost.
This approach allows borrowers to move proactively rather than reactively when financing opportunities arise.
Capital Strategy for Business Owners
Relationship capital is equally important for operating businesses.
Companies that require fast access to working capital, expansion capital, or acquisition financing benefit significantly from establishing funding relationships before capital becomes urgent.
Platforms such as Fasty Funding focus on helping business owners secure fast and flexible funding solutions, including:
• working capital financing
• revenue-based financing
• growth capital
• expansion funding
When these relationships are established early, businesses can move quickly when opportunities appear.
Waiting until capital becomes urgent often leads to fewer options.
Capital Strategy and Business Acquisitions
Relationship capital also plays an important role in business acquisitions.
Entrepreneurs purchasing companies often require a combination of financing sources including acquisition loans, seller financing, and growth capital.
Advisory platforms such as Loyalty Business Brokers help buyers and sellers structure transactions and connect with financing partners.
Buyers who have already developed financing relationships are often able to present stronger offers and close transactions more quickly.
The Borrowers Who Execute Best
Borrowers who consistently execute successful transactions share several characteristics.
They think long term.
They communicate regularly with capital partners.
They engage advisors early rather than waiting until financing becomes urgent.
And they treat capital strategy as a core part of their business.
Over time, these habits create a significant advantage.
Borrowers who build capital relationships early rarely find themselves scrambling for financing when opportunities arise.
The Real Advantage in Finance
Capital itself is widely available.
But reliable capital—capital that moves quickly and closes with certainty—usually depends on relationships.
Borrowers who cultivate those relationships early have a significant advantage.
As Don McClain often notes, the most successful borrowers treat capital relationships as a long-term strategy rather than an occasional requirement.
When financing opportunities appear, they are already prepared.
They are not searching for capital.
They already know where it will come from.
See a verison of todays article on Medium.
About the Author
Don McClain is Founder & Principal of Fast Commercial Capital, a nationwide capital advisory firm specializing in commercial real estate financing, bridge loans, and structured capital solutions. Through the Medro Advisors Platform — which includes Fasty Funding,Alianza Partners, and Amable Properties — he works with investors, business owners, and sponsors across the United States on real estate financing, business acquisitions, and strategic capital solutions.