Life is so much easier when you have the necessary funds to actually fulfill your business plan and make course corrections in real time to succeed. When you don’t have the right amount of capital it usually leads you done a path of frustration and stagnation that very few companies come back from.
What is stopping you from getting the money you need? I feel it boils down to three main points.
- First you need to step into your own power and believe there is plenty of money available for me and my business.
- Second you need to be able to show proof that your business model is currently working. (This means show them your prototype, your system, your sales funnel, product or service, etc.)
- Third you need to be conscious to what the investor, financial institution and bank are going to need to make a favorable decision on your behalf.
One of my clients needed business loan because one of their major clients was getting behind on their outstanding invoices. This is common pitfall for many businesses who are taking on larger projects that require more dedicated time and resources to fulfill. Time was a pressing need because payroll and vendor invoices were about to be due and without these funds his business could go under. My client needed at least $20,000 and he needed it ASAP.
With sub par credit, very little money in the bank and a lack of financial documents available I had some major work to do. First I made an intention to myself that I was going to find money for my client. There is a lot of money in circulation and there is no reason why my client can’t get the money he needs within the timeframe he needs it by. This loan is going to save his business and take care of all the other businesses and their families as well. There is no way I’m going to let all these people down!
The second thing I did was get my arms around the business model and understand how the money flows in and out of the business. How long was the business up and running? How much money has flowed though the business recently and over the past couple of years? What is the money going to be used for and when is it needed by? The greater the proof of concept the easier it is to get the money.
The third thing I did was get very conscious to what I would want to see personally from the business in order to fund the deal if I had the money to do so. I was being aware of the potential questions and documents that the underwriter would be asking for upfront. Who would actually fund this type of need? What is the biggest risk and how can I limit that concern? What can I provide in addition to the file to help sway a favorable answer for my client?
Then I presented the items in a very concise and clear file to the right lender which led to a successful loan of $38,500 dollars. From start to finish it took less than 5 business days to solve this clients problem. My client was then able to maneuver through the outstanding invoices and actually increase profits because he was much more liquid than before the loan.
Use these three steps wisely and you will get all the funding you need to take your business to the next level.