Requesting and Providing Information

I often get e-mails from associates that simply ask, "can you help get funding for my client?" Hopefully I can, but I can't even guess if I do not have more information.

When you request information from someone, ask for what you need. To follow up with my example question, I would expect someone to write me saying that they need US$12 million to consolidate debt and fund the expansion of a widget factory in China. I would then ask that they share some basic financial information for the past few years as well as pro forma figures for the future. I would also like to know if there is equity in the company and if the principals have put in any money themselves.

To put it in more general terms, ask for what you need, why you need it, how you will use it and what you are offering for it.

The awareness for today is to be thorough in our requests for help from others. Let's be specific about our needs and wants and then we can better manage our expectations.
~Paul

A Funding Deal on the Edge

I may have already written about this and if I have, forgive the repetition, but I did want to vent a bit and this is a great medium for me to do so. About two years ago I met a very nice, sharp business consultant, I will call him Frank. He was very interested in the connecting that I do for debt financing and we have tried to work together several times.

Frank sent me a deal to look at in April of 2006. The deal was not strong enough for my sources, but the seed was planted. Frank and I kept in touch over the years and just checked in with each other every so often. After some major modifications to the business model and plan, Frank came back to me in August with a very solid business plan. I shared it with a few of my connections and there was interest immediately.

By the middle of October, one of my contacts had provided Frank and his client with a loan package and simply needed the client to submit the application. Nothing has happened yet. I check in every other week with Frank and he keeps trying to push his client, but the client has just sat on the paperwork.

Today, the lender contacted Frank to see if there was still interest and I sent over my own e-mail to Frank. Frank is as frustrated as I am. He put in a lot of time and effort, yet he cannot get his client to follow through with the application. To add to the situation, Frank has shared that the client needs the money at this stage to stay alive, yet he isn't doing everything he can.

All I can do is keep in touch with Frank and hope that his client will submit the paperwork so we can get this deal closed.

The awareness for today is that sometimes it eases frustration to write out the situation...just as I have done here.
~Paul

Business Integrity

I was contacted this morning by a man looking for funding to assist his company in the buyout of another company; we will call him Franklin. I had been introduced to Franklin by an associate of mine at the Institute for Independent Business International. After originally being introduced to Franklin a couple of months ago, he never provided the information promised to me and after he did not respond to a couple calls or e-mails, I simply let it go.

Upon receiving the message from Franklin today, I immediately let the associate who made the introduction know that Franklin had contacted me. I asked if he was still in contact with Franklin, but the main reason I checked in is that I did not want him to feel that I have circumvented him. I will still plan on sharing fees (if there are any earned on this!) with the associate who made the introduction, even though Franklin came to me directly. This is how I would want someone I made an introduction for to treat me.

The awareness for today is to remember to give credit where credit is due...especially if that credit involves any sharing of fees.
~Paul

Deal Back on the Table

Let me see if I can explain this so it makes sense...I had been working on a funding deal with a consultant that I connected to one of my funding sources. They had chatted and my funding source had passed on the deal. Today, to my surprise, I found out that they began discussions again yesterday.

I am just baffled by how this even came about. The last conversation I had with my funding source was that if I got the client to provide more historical financial data, I asked if they would be willing to look at the deal again. The answer was yes, but that information was never provided. I am not at all upset that discussions have begun again, just surprised.

The awareness for today is to appreciate those things which we have no control over, but still benefit from.
~Paul

Responsibility for Our Actions

I have recently connected some consultants with funding sources of mine. I always feel that is a good thing as it leads to the potential of me receiving referral or finder's fees for successful deals. The frustrating part is that I have been getting two completely different stories when I check in with both sides.

The consultants say they were told one thing, while the funding sources explain they were saying something else. I then try to interpret it and share it back with the consultants, hoping to keep them from being too discouraged. I do whatever I can to keep both sides communicating. Sometimes there is nothing I can do.

The awareness for today is that we can only control our own actions (and even then control is an illusion); let's say we can only be responsible for our own actions. In saying that, let us do our best to improve any situation we are in rather than bog it down.
~Paul

Following Up After a Request for Information

I am an accredited executive associate of the Institute for Independent Business International. The Institute is an international accreditation body for senior executives. We are on a closed e-mail system and can therefore send mass e-mails to all accredited associates. I often use this to share my sources with associates, but also to receive continuous requests for funding.

Once I receive a mass e-mail that requests funding, I check with my various sources and if there is interest, I reply with a request for the additional information I will need to assist; I try to do this within 24 hours, but I am sometimes held up by my funding sources. If I do not receive a response from an associate that sent the request, I send a follow up e-mail one week later. 80% of the time I receive a response, but I do not understand why the other 20% don't even respond or acknowledge my offer of assistance.

To me it is common courtesy to reply even if the need has been filled. I find it very helpful to be notified that a deal no longer needs funding and then I close it out of my pending projects.

The awareness for today is to be conscious and courteous if you are looking for information. If someone replies back to you after you have already received the information you were looking for, simply express that and thank them for their time; it will definitely keep the relationship open for the future.
~Paul

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