“Having The Proper Business Financing Mindset Can Make Or Break Your Search For Funding”

When you are in search of business financing, either in the form of debt, equity, or some combination of the two, you will benefit from having the proper mindset for approaching this task.

So what do I mean by the proper mindset?

I’m referring to a perspective whereby your focus going into the business financing process is that 1) its going to be more difficult that you think; 2) its going to take longer than you imagined; and 3) the process will take unexpected twists and turns.

This goes along the lines of prepare for the worst and hope for the best, and if the business financing process goes better than expected, then so much the better.

But assuming it will go well from the outset is potentially setting yourself up for failure.

Why?

Because most business financing processes are difficult.

Why are they difficult?

Its a hard question to answer in one sentence but essentially the more people that are involved in the process, the greater the chance for delays, misunderstandings, incorrect assumptions, personality conflicts, and subjective assessment that does not go your way.

So to increase your chances of success, going in with the right mindset can help you stay sharp, make sure things are not slipping into unnecessary delays, and basically not allow you to take anything for granted and to always remember that its not over until funding is fully completed.

If you’re like most business owners or managers that have not experienced the dark side of business financing, then you’re probably thinking that I’m exaggerating.

All I can tell you is that in 25 years of working on business financing cases, it is rare that I see a deal that is approved and funded without some twist, turn, or delay.

Here are a few examples from just this year …

The application process moves to the commitment stage, just in time to fund the deal in the time period available, when the lender adds 7 new conditions into the final commitment without previously bringing them up. It became impossible to meet the conditions in the time remaining to close the deal and the deal was lost.

For a business refinancing case, the applicants accountant promised to provide completed financial statements by a certain date 6 weeks into the future. When the date came, the accountant had not yet started working on the financials, the existing bank pulled their facility and gave the business 30 days to pay them out before the bank closed the business account and started to realize on registered security.

Unfortunately, these types of situations are more common than not. Sometimes we can work our way through them and some times we can’t. One thing that always helps is having more time to work with and staying on top of all those involved to do their part in a timely fashion.

As I have said several times in other articles, business financing is very much about applying at the right place at the right time, but its also about having the right mindset for even when you are at the right place at the right time, things can still go wrong and you need to be able avoid the problems that can be avoided and quickly solve those you can’t see coming.

In the end, business financing is both art and science which is also why working with a business financing specialist can many times get you through the financing process in the time you have to work with.

Click Here To Speak To Business Financing Specialist Brent Finlay