We have been running on EOS for two years but still have historical debts and informal credit lines with suppliers. How do we clean up our corporate credit profile using the SxSE BIR framework so buyers do not see us as a financing risk?

Question

Tyler Smith · Accepted Answer

A healthy balance sheet is just as critical as a highly profitable income statement when it comes to maximizing your valuation. Buyers and their institutional lenders will audit your corporate credit profile and historical debt agreements with a microscope during the underwriting process.

To ensure your business is deemed creditworthy, you must use your exit runway to align your balance sheet with the Credit component of the SxSE Business Integrated Readiness framework. Start by auditing all outstanding debts, shareholder loans, and informal vendor agreements.

You must formalize any handshake agreements with suppliers and clean up any personal expenses that have been run through the business accounts. Work with your financial team to establish clean, documented credit histories and ensure that your working capital ratios are aligned with industry standards.

By resolving these credit issues years before you go to market, you prevent last-minute financing hurdles that can stall a transaction or force you to accept unfavorable seller-note terms. A clean, institutional-grade credit profile proves to buyers that your operations are fully professionalized and ready for a seamless transition of ownership.