Think its Easy To Raise Capital These Days? Think again.
- In 2012, 43% of small businesses said that they were unable to find sources for the financing they needed (NSBA 2012).
- Only 13% of applicants were approved for an SBA loan in 2013 (Ventury Capital 2015).
- 46% of businesses think it’s somewhat easy to get the financing they need (The Hartford 2015).
- Of the businesses that think getting a loan is relatively easy, 36% admitted that they use retirement savings, money from family or friends, or personal savings for funding, as opposed to bank loans (The Hartford 2015).
- Big banks only approve a little more than 20% of the loan requests they receive from small businesses (Business News Daily 2015).
- Bank loans to small businesses have been reduced by 20% since the financial crisis of 2008 (Harvard Business School 2014).
In In late 2013, the New York Feds did a survey on small-business owners about their financing and credit needs. They found that the search for credit is time-consuming–business owners spent 26 hours on average on their search, contacted three (3) financial institutions, and submitted three credit applications. Despite all that work, around half of these businesses never secured financing, and another substantial group of businesses was discouraged from even applying for loans. Most of these businesses were looking for less than $100,000. Why? Because the owner was not prepared.
Our Approach To Getting You Funded
When applying for financing, you need to convey to the lender how much money you need, how you will spend it, how they will get their money back with interest, reduce their exposure to risks and explains your business model. That is why it is important to make your best presentation in the initial application to clearly answer any questions upfront. When an investor/lender sees your ability to manage money, defined strategies and targets to ensure sales that will be how your repay them, it will give them more confidence in you with their money.
.An application package will include many items including the lender’s application, personnel net worth statement(s), business plan, financial models with forecasts, resume or curriculum vitae along with copies of invoices, purchase orders, payroll statements, budgets and other documents plus historical financial statements, tax returns, and more
- PREPARING YOUR BUSINESS TO APPROACH INVESTORS: We help you define the strategic use of funds, goals, objectives and we evaluate current state of your business to determine the impact on your company. We then help you improve your business, sometimes bootstrapping to avoid outside investments coupled with our Sell-TO program to increase sales revenues. Our business planning services may include a combination of the following services depending on your specific needs and budget range:
- strategic planning
- Financial modeling, sales forecasting, and projections
- Management team bios, C.Vs and resumes
- Coaching brainstorming and facilitation
- Business management consulting services
- DOCUMENT CREATION: Once we define the business and use of funds, the amount and type of funding source to approach, then we help you create the appropriate documentation. Our team will develop the necessary paperwork from financial statements, business plans, market research and plans, personal net worth statements, even getting your business valuation to ensure smooth submission to your funding sources.
- FUNDING PROCESS: We help you through the funding process and consult with you to improve efficiency in your day to day operations thus providing for increased net profits to pay off the funding sooner and emerge debt free. Our Sell-TO program helps to increase your sales allowing you less dependency on outside sources of funding.
Examples of Use of Funds Include:
- REAL ESTATE BUILD OUT/RENOVATION/REMODELING
- MERGER AND ACQUISITIONS
- WORKING CAPITAL
- BUSINESS START UP
- IMPORT OR EXPORT ORDERS
- REAL ESTATE DEVELOPMENT
- EQUIPMENT LEASING / LEASE BACK PROGRAMS
- PURCHASE ORDER FINANCING
- EXPANDING AND OPENING NEW LOCATIONS
- FRANCHISING OR LICENSING YOUR BUSINESS
- BRIDGE LOANS FOR TEMPORARY GAPS IN SELF-FUNDING
- UNEXPECTED EXPENSES
- PURCHASING INVENTORY
- NEW PRODUCT DEVELOPMENT
- RESEARCH AND DEVELOPMENT OF NEW PRODUCT LINES
- VEHICLE LEASING
- AND SO MANY MORE USES
But before undertaking the complex, expensive and time-consuming preparations and incurring the risks involved with raising capital on your own, Call us today for a Free GAP Analysis to learn more about where you stand on raising capital and if our consulting services will assist you in raising funds.