136 Raising Capital The management team assigned to obtain debt financing from a commercial bank must embark on an immediate risk mitigation and risk management pro- gram to prepare for negotiating the loan documentation and must have a deep understanding of the lender's internal evaluation power and risk mitigation analysis. See Figures 7-1 and 7-2 for some insights into the internal evaluation process. Preparing for Debt Financing Minimizing and managing risk will always have a direct effect on the attractive- ness and affordability of traditional debt financing. For a small and growing company, this will mean producing a loan proposal package that demonstrates the presence of a strong management team; an aggressive management program to handle internal control and accounts receivable; financial statements and projections that demonstrate both the ability to meet your repayment obligations Figure 7-1. The Elements of a Loan Transaction.