Elvio Trovini on Financing in a Crisis: How to Build Flexible and Resilient Deals

When interest rates spike, credit tightens, or unexpected shocks ripple through the global economy, businesses are often forced into survival mode. For small business owners and property developers in particular, volatility can quickly unravel deals that once looked solid on paper. Yet seasoned financiers argue that it doesn’t have to be this way. The key, they say, lies in structuring deals with resilience baked in from the start.

“Market cycles are inevitable. What matters is how well your financing structure can bend without breaking,” explains Elvio Trovini, a veteran in alternative finance who has advised on hundreds of transactions across real estate, commercial lending, and accounts receivable financing.

So what does flexible, crisis-ready financing look like in practice? Experts point to several guiding principles.

1. Build in Rate Flexibility

When interest rates shift sharply—as seen in the past two years—fixed-rate agreements can trap borrowers in unfavorable positions. Conversely, floating-rate debt without protections can expose them to runaway costs.

Trovini recommends hybrid structures. “You can negotiate caps on floating rates, or pair short-term fixed tranches with floating ones. That way, you’re not locked into one extreme,” he says. This balance allows borrowers to ride out spikes without forfeiting long-term stability.

2. Protect Liquidity Through Covenants

In times of stress, cash flow is king. Financing structures that strip a business of liquidity—through aggressive repayment schedules or rigid covenants—can tip companies into distress.

Instead, borrowers should push for performance-based triggers. “A deal shouldn’t punish you when the economy stalls,” Trovini argues. For instance, repayment schedules tied to revenue milestones or occupancy rates give businesses breathing room when conditions tighten, while still assuring lenders of accountability.

3. Diversify Sources of Capital

Resilient deals often blend traditional and alternative finance. Bank loans may be supplemented by private credit, mezzanine financing, or even accounts receivable financing to unlock cash tied up in unpaid invoices.

This diversified approach spreads risk. If one lender retrenches, others can step in. Developers, for example, have increasingly paired construction loans with bridge financing to maintain momentum when capital markets waver.

4. Keep Relationships at the Center

Resiliency isn’t purely about terms and structures—it’s also about people. In turbulent times, longstanding relationships with lenders, investors, and advisors can mean the difference between extending a covenant and triggering default.

“Trust is capital,” says Trovini. “If you’ve built credibility over years, your partners are far more likely to stand with you when things get rocky.”

5. Align Financing with Purpose

Finally, the most durable deals are those that tie financing not just to numbers, but to long-term business objectives. Borrowers who can clearly articulate how financing advances sustainable growth, community value, or innovation are often better positioned to secure flexible terms.

A Playbook for the Next Cycle

For business owners and developers staring down an unpredictable 2025, the takeaway is clear: resilience isn’t accidental—it’s engineered. Hybrid rates, liquidity safeguards, capital diversification, strong partnerships, and purpose-driven storytelling are the building blocks of financing that can weather storms.

“The long game isn’t about predicting every cycle,” says Trovini. “It’s about structuring deals that allow you to keep playing, no matter the cycle.”