Lack of Planning
Research shows that new businesses face high failure rates, ranging from 60 to 80% within five years, primarily due to poor planning. Only 10 to 20% of equity or loan proposals get approved. A strong investment-grade business plan is crucial for success, fostering communication with stakeholders, securing funds, and achieving milestones promptly. This applies to both new and established ventures, enhancing their overall prospects.
Hidden Costs
Conventional loan scenarios often involve hidden costs that can be more challenging to accept than the actual payment itself. Uncovering undisclosed upfront expenses adds to the financial burden. These fees, combined with essential administrative costs, are unavoidable due to the extensive financing process, which typically takes 8 to 16 weeks and requires a team of experienced professionals to gather and present relevant information.
Confusing Options
The conventional lending process employed by many business banks and lenders focuses primarily on a numerical assessment of applications, lacking personalized guidance and exploration of alternative options. The abundance of information often creates a bewildering array of choices, leaving borrowers feeling overwhelmed and lacking support throughout the process.
Hassles, Delays, Frustration
Traditionally, securing project financing involves investing numerous hours in navigating complex processes, meeting time-consuming packaging demands, and engaging with unfamiliar lenders and investors. This often includes attending multiple investor meetings and dealing with divergent or impractical expectations. The entire process can be burdensome and time-consuming, diverting your attention from core business activities
Lack of Administrative Assistance
Establishing the necessary administrative infrastructure to effectively manage finances, gather relevant expertise, and secure timely project setup and working capital can be a challenge for many small companies. Juggling multiple responsibilities while attempting to gather information independently and maintaining a stellar reputation can be overwhelming. This can lead to inefficiencies and hinder business growth.
Limited Access to Funding Sources
Borrowers often face limited access to diverse funding sources, especially when relying on conventional lending processes followed by business banks and lenders. This restriction hampers their ability to explore a wide range of financing options and find the most suitable funding solution for their specific needs.