3 simple rules for success in raising business finance
While many business owners feel confident about presenting a finance proposal to a bank, a surprising number of proposals are actually turned down.
There are 3 essential points you need to keep in mind to maximise your chances of hearing a “yes” rather than a “we’re sorry” when looking to raise finance for your growth aspirations.
1. Choose the right financier
Spend time thinking about the most appropriate funding source for the project or objective. Long-term projects are probably not best funded by overdrafts or loans in debt. Get experienced advise about the various sources of finance and guidance in selecting the option best suited to your end goals.
2. Provide the financier with the right information
Often, unsuccessful applicants will complain that the lender did not seem interested in their business. Actually this is often not really the issue..
More often, it is not because the idea is lacking, or because the bank disapproves of the proposed development. It is because the proposal is not presented in terms that will appeal to a potential lender.
Ever seen a great idea presented on Dragon’s Den, only to then watch as it goes down in flames as the dragons dig deeper? Exactly the same scenario happens every day when business apply for finance.
They answer is to make sure that you fully understand the information that the bank wants. This often means much more than simple financial projections.
To have confidence in an enterprise, a financier usually wants to gain an appreciation of the business, the quality and depth of management and the key people involved - and this information should be presented in a suitable way.
3. Take professional advice
It is best to use the services of a professional when preparing and presenting a proposal. A solid, detailed business plan that will attract financial support, and perhaps identify potential financiers who will meet your needs is fundamental.
From there you will have the basis to prepare a winning proposal that when presented to a carefully chosen lending source will have a greater chance of success.
To find out more about how we work with growth focused SMEs, have a look here. Or you can call Acconomy on 01202 678 993, or even email Nigel directly on firstname.lastname@example.org