Let’s face it. Entrepreneurs and business owners are always looking for money. I find it interesting that many folks running a business who need money don’t take the time to really understand how much money is actually out there and available to them. When words like “money, financing and capital” are used they can cause someone’s eyes to glaze over as these terms are associated with confusing and uninteresting concepts. The truth is that money can be complicated and boring to understand but it doesn’t have to be.
I talk about this often but it’s always good to repeat valuable pieces of information – especially if it saves someone from wasting their time. One of the biggest misconceptions people have is that their bank has their interests in mind. I am not saying that banks do not care about their clients but I do think it is important for people to know that banks are businesses not charities. As such they have a business plan, target customer types, sales goals, profit margins, etc. which all attribute to their ability to help someone looking to borrow money. Many people think that just because they know their banker they can ask for whatever they want and if the bank says no that they have no other options. Here is how it really works.
Admit it. Either you or somebody you know has had that experience of getting excited to go on a date only to be more than disappointed. It wasn’t the event that they went to or the restaurant they ate at or even the conversation – it was usually the let down from the over promise of what they were expecting from the date. In the past week I was reminded that going on a bad date is like working with a bank to get a mortgage or loan. Banks have many layers of people and systems that need to work together in order to lend you the money you are looking for. A bank manager may genuinely have good intentions when they tell you “yes we can take a look at your request” only to tell you later “sorry our credit department has declined you”. What a let down. I did some research to see how people avoid going on bad dates to see if there were some ideas I could borrow when helping people (and businesses) work with a bank.
You may not know this or even have considered you would need this – but we all do. We all need a champion for our cause. Without a champion is can be hard to get to where we need to be or to get what we are looking for. In my experience over the past 18 years working to get money for people and businesses I can attest to the importance of having someone support your cause and help you fight the good fight. Continue reading “Who is your champion? Don’t have one? Get one.”→
I sat with an investor last week that was looking for some input on a deal that was presented to him through a friend who was seeking short term financing for his company. On occasion this individual will fund opportunities for clients of mine and we have gotten to know each other pretty well so he asked for my help. Prior to our meeting the CFO of the company seeking his investment completed our Business Health Check (www.businessmoney.ca) and we used the results to speak about the opportunities and challenges involved with making a decision to fund this request. Reviewing the Business Health Check results not only provided some insight into this company but also highlighted several other items that immediately came forward which most businesses Continue reading “3 lessons from a 30 minute meeting with an investor”→
Isn’t the only saying true – you get what you pay for. This is especially true when using a broker. Most brokers that help you find financing earn a commission for successfully finding you the money you need. Because you don’t pay them like you would any other professional you may be less impressed with the level of service delivered. The reason is simple – if you are not paying someone to look after your interests chances are very good that they are taking care of their own interests at your expense. Continue reading “You get what you pay for”→