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1. Your Financing Request (The Lender's Top 10 Tips)

Updated: Sep 15, 2023

Picture this: your business plan lands on a lender's desk, and the first thing they seek is your financing request. It's not just a section in your plan; it's the spotlight that sets the stage for your funding journey. Add your summary into your executive summary so it is right at the forefront, and get ready to move forward faster.



But before you send your ask, ponder over these crucial questions:

  • How much funding does your business genuinely need, not just want?

  • How will those funds be used in your business?

  • Can you navigate operating expenses, growing the company and repaying your debt?

Now, let's learn how to craft a clear and compelling financial request:

"Dear X,


We are requesting a $40,000 loan to power our equipment purchase and a $10,000 line of credit for seamless day-to-day operations. A careful analysis reveals that our revenue stream will ramp up by month three, which will help us covering costs and term loan payments."

When it comes to worthy financing causes, think of these as lending green lights:

  • Boosting working capital

  • Growing production and services

  • Nurturing business growth with purposeful expenses

  • Outfitting your journey with tools and equipment

  • Upgrading to a new office space

  • Funding research and development dreams

And now, the flip side - lenders tend to shy away from certain requests:

  • Bidding farewell to other debts

  • Jet-setting on the lender's dime (even for business reasons)

  • Using debt to increase your salary or owner's draw

  • Piling up more than three months of operation costs

Hold a lender's lens to your pitch and ask, "Would I roll the dice with my own funds for this?" Remember, with Community Futures, you're tapping into a fund designed to help benefit and grow the community.

Step into the realm of financing. Successfully secure funding, and you'll initiate a harmonious blend of trust, potential, and financial stability.



This is part of our series: What A Lender Looks For: The Top 10 see the main post here.

 

Ready to apply for financing?



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