When Seeking Funding

I often receive requests for funding, as debt financing is what I focus on. Sometimes the request I receive is along these lines, "I have a client that needs $X to grow their business. Can you help?" I often can, but I definitely need more information. I request a one-sheet summary and a business plan including past and projected financials just to really see if the deal is something that my funding sources would be interested in. If I am not interested in the deal or do not believe in it, then my sources do not want to see it; they want me to act as their first line of defense against deals that may waste their time.

The next step is the interesting one. Sometimes I receive a reply with more basic information, but no business plan. If someone is looking for money, they need to know what they are asking for and be able to support why they are asking for the money/how it will be used as well as show how they will have the resources to pay it back (to cover their debt service).

The one-sheet summary (often an executive summary will cover this) is incredibly helpful for me to share with my funding sources to simply see whether there is interest or not. If the business plan is not too technical, I can create the one-sheet summary to share. However, if the business plan is very technical, I am quick to acknowledge that I am not an expert on their business and I request that they create the summary for me to share so that all of the pertinent information is included.

I like to point out that I do not charge any fees, but instead take a success fee only if the funding is successful, so there is no cost to using my help for their funding needs; this is all arranged in advance.

The awareness for today is if you are looking for any form of financing, it will take work on your end. You cannot just say you need money (from less than $50K to more than $500M) without supporting your case. Put in the time to "make your case."

Please feel free to contact me with any questions.
~Paul