5 Easy Tips To Secure Financing

5 Easy Tips To Secure Financing

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It is troubling for any investor whether they are new or old in the field if they are faced with the challenge of securing financing for their business plans and goals. The plans may be great and stunning, but without financing, the plan might not materialize at all. The problem lies in where to get financing and how to get it. That being said, the ordeal has changed in the last decade. In the past, lender financing was the major source, when it came to funding.

However today, there are so many financial entities that offer what you need. Even though financing is easy to get or acquire, the process is still complex. You need to present a dazzling plan and render a solid presentation to obtain their approval. That being said, here are some of the tips that you can utilize to secure financing and implement your corporate goals.

  • Choose A Target. There is no other better way to discovering the right capital partner than by doing your research. With the many “so called” financial institutions out there with their tremendous offers, it seems easy to get one onboard to your business. However, you still need to know which of these can match your requirement details, such as the amount you can avail, the interest rates and charges, and other terms. Once you are convinced of their capability, you need to convince them that you are the right client, who will give them the best offer and return on their investment. Prepare your presentation and make sure that it is clear and concise. Go the extra mile, by establishing a working relationship with your prospective finance company.
  • Have Your Proposal and Figures Current. Always take into account that the basis for any business transaction, is the proposal with figures vividly showing, what the lender can get out of the deal. Unless you have already established a good track record, it is better to keep abreast of your numbers and be ready to respond to the questions. Focus on answers to unforeseen negative outcomes and probable drawbacks and be on alert, to provide alternatives. While positive will provide confidence, foreseeing a “worst case” playing field, will prove helpful, to both the borrower and the lender.
  • Highlight the Advantages. The lender would always look at the benefits, that the investment will bring. Be on guard to the fact that they have the money, but they would be swayed to fund your project, if the net benefit exceeds the costs. You should be aware that moneyed individuals have their money, safe in banks earning low-interest rates. However, they can be attracted to invest, for a strong potential return, with fewer risks. The bottom line is for you to focus on the benefit, that both of you can take advantage of.
  • Be Proactive and Seal the Deal. Always show to the lender that you are more interested in the business partnership, than he is. What you can do, is to follow up on your proposal, no later than 24 hours after your meeting. Just like the old saying “Strike when the iron is hot”, you can apply this to any transaction. Be the one to call and ask questions or be able to answer their queries that might have cropped up, after your meeting. It is easier to seal the deal, when the information you have given, is still fresh in the mind.
  • Establish Personal Connection. While it is true that money counts and returns are preferred, personal relationship is even more necessary, to create a business relationship. It is the borrower’s job, to build confidence and trust, to start the partnership towards a long-lasting engagement and thereafter, reap the benefit.

Though you currently use traditional lender financing or hard money lenders, it is always good to have additional and other sources of capital identified. With all these, you are now ready to go into your next investment seeking activity.


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