A step-by-step guide to securing the funding your business needs
WHY FUNDING READINESS MATTERS
Many SMEs struggle to access funding, not because they lack potential but because they aren’t “funding ready”. Lenders and investors look for businesses that demonstrate financial stability, a clear plan, and a strong ability to repay loans or generate returns.
Being funding-ready means:
- Having a solid business model with clear financial records.
- Understanding how much funding you need and why.
- Knowing what funders look for and aligning your application accordingly.
Fundoh helps SMEs become funding-ready so they can access capital faster and with better terms.
COMMON REASONS WHY SMEs GET REJECTED FOR FUNDING
1. Poor Financial Record-Keeping
- Funders want to see clear financial statements before approving funding.
- Many SMEs fail because they don’t track income, expenses, and profitability.
Solution:
- Keep updated financial records using accounting software.
- Work with a professional accountant or bookkeeper to prepare reports.
2. No Clear Repayment Plan
- Lenders need assurance that your business can repay the loan.
- If you can’t demonstrate a repayment strategy, your application may be declined.
Solution:
- Show realistic revenue forecasts and how you plan to generate income.
- Apply for funding that aligns with your cash flow capacity.
3. Poor Credit History
- If your business or personal credit score is low, lenders will see you as a high-risk borrower.
Solution:
- Improve your credit rating by paying off debts and avoiding defaults.
- Consider alternative funding options like Invoice Financing if you struggle with credit scores.
4. Weak Business Plan
- Funders need to see a clear strategy before approving financing.
- A vague or incomplete business plan reduces your chances of securing funding.
Solution:
- Have a well-structured business plan outlining your vision, revenue streams, and market strategy.
- Clearly state why you need funding and how you’ll use it.
HOW TO BECOME FUNDING READY
1. Know Your Funding Needs
- Determine how much funding you need and why.
- Align the funding amount with your business goals and repayment capacity.
2. Get Your Financials in Order
- Prepare financial statements, including:
- Income statements
- Balance sheets
- Cash flow statements
- Ensure tax compliance and resolve outstanding debts.
3. Choose the Right Type of Funding
Different funding options work best for different business needs.
- Business Loan – Best for expansion, equipment, or working capital.
- Invoice Financing – Unlock cash from unpaid invoices.
- Trade Finance – Get funding for large purchase orders.
- Asset Finance – Buy equipment or vehicles without upfront cash.
4. Strengthen Your Creditworthiness
- Improve your business credit score by paying suppliers and lenders on time.
- Reduce outstanding debts and avoid financial penalties.
5. Create a Winning Business Plan
A strong business plan should include:
- Company overview
- Target market analysis
- Revenue model
- Competitive advantage
- Financial projections
- Growth strategy
HOW FUNDOH HELPS SMEs BECOME FUNDING READY
At Fundoh, we don’t just match businesses with funders—we also help them prepare for success. Our support includes:
- Business Plan Guidance – Helping you structure a winning plan.
- Financial Readiness Assessment – Ensuring your records meet funder requirements.
- Credit Profile Support – Assisting with improving your business creditworthiness.
If your business is struggling to secure funding, let’s get you funding-ready today!
