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5 Reasons Why Your Business Can’t Get Funding

Businesses can’t grow without money. Yet, it can be tricky to secure funding for your company. When you feel your company is getting rejected by money lenders and investors, it is worth investigating some of these issues as a priority.

#1. Your company has got credit card debts

Typically, money lenders know that commercial debts can occur and are often part of essential business growth. For instance, most companies do not recoup business launch costs within their first years, as they need to invest in resources, marketing, and skills before they can make a profit. In other words, a healthy level of debt is acceptable for businesses. However, lenders are likely to frown upon commercial credit card debts, as they can highlight problems in managing day-to-day cashflow. Commercial credit card debts typically require a similar repayment approach as personal debt, such as cutting back on unnecessary expenses, making a budget, and prioritising debts.  

#2. Your business is not viable in the long term as it is

It doesn’t mean that your business is about to go bankrupt. But as all investors run credit investment research before making their decisions, they will evaluate whether your business has potential in the future based on the available information. Your business model or current offering may not be suitable for the long-term future. If you do not share your plan to expand or transform the company, potential credit investors are likely to pick up on the lack of viability and reject your application. You may need to put together a business presentation!

#3. Your business has a high turnover rate

A high turnover rate is putting companies at risk of reaching their goals. Companies have an average employee turnover of 15% a year. Unfortunately, the current market situation encourages the workforce to seek new opportunities from the comfort of their homes. The popularity of remote work arrangements means that employees are more likely to job-hop, affecting business culture, skills, and overall productivity. 

Money lenders are more likely to avoid companies that struggle to keep their staff, aka companies with higher than average turnover rates.  

#4. You make a bad first impression

If you meet with money lenders or investors before discussing funding, you may be leaving a negative impression that affects your chances of securing capital. Simple things such as turning up late to an appointment can be harmful to your reputation. Even if things are not always in your control, such as being stuck in traffic, it’s important always to keep the other party informed of possible delays. 

Additionally, it’s essential to show that you are engaged and interested in the conversation with them. Therefore, checking your phone and not listening to them could be detrimental.

#5. You leave no impression

There is nothing more harmful than being forgettable. This could happen when your branding lacks personality. As a result, people could confuse your brand with another because logos are too similar or sometimes even because names are almost the same. While money lenders will check their sources and ensure they focus on the right company, they are aware that customers are unlikely to go to the same length. So if they almost got companies mixed up, customers are certainly doing it too. 

Are you ready to bring your business to the next level? Do make sure you are not making any of those mistakes. Securing funds for growth begins with your business presentation. From branding to credit card debts, focus on areas that could turn off lenders.

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