Brett Denton, founder of KvellFit.com and AtoZBusinessFunding.com, shares his journey through the tough world of traditional funding. He reveals that over 95% of businesses face rejections from banks, urging entrepreneurs to explore alternative sources instead. Key strategies include preparing financials in advance and enhancing your profile to attract lenders. Brett emphasizes resilience in business and encourages gathering insights from seasoned entrepreneurs to navigate the complexities of securing capital, crucial for long-term success.
Read more
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Access to capital is essential for long-term success, as poor funding decisions are a leading cause of business failure.
Preparing your personal and business financial affairs thoroughly before applying for funding can significantly increase your chances of approval.
Deep dives
The Importance of Access to Capital
Access to capital is critical for long-term business success, with studies indicating that 82% of business failures are due to poor cash management resulting from a lack of funding. Entrepreneurs often bootstrap their businesses, but as they aim to grow, unforeseen expenses arise that require additional capital. The failure to secure funding can stifle growth and lead to business failure, especially when many small business owners report being denied by traditional lenders. The ability to manage and deploy capital effectively is essential for overcoming challenges and driving business expansion.
Understanding Eligibility for Funding
Before seeking business funding, it is crucial to present oneself as a legitimate business to lenders. This includes having a dedicated business bank account, a professional website, and a physical address. Key components that lenders look for include maintaining sufficient cash flow and a solid business plan, which helps demonstrate financial responsibility and preparedness. Establishing credibility with lenders increases the likelihood of obtaining funding and achieving favorable terms.
Strategies for Improving Personal and Business Credit
Building both personal and business credit is essential for obtaining funding, as lenders often base their decisions on creditworthiness. To enhance personal credit, entrepreneurs should regularly review credit reports for inaccuracies, ensure timely bill payments, and manage debt usage effectively. For business credit, having a structured business entity and obtaining a DUNS number are vital steps in establishing credibility. Strong credit scores improve the chances of approval for loans and can lead to better terms on financing agreements.
Exploring Alternative Financing Options
When traditional funding routes are unavailable, entrepreneurs can consider alternative financing options such as merchant cash advances, unsecured lines of credit, or equipment financing. Merchant cash advances provide quick funding based on cash flow, though they may come with higher rates. Unsecured lines of credit allow access to small amounts of credit without collateral and often feature favorable terms for startups. Equipment financing serves those in need of essential business equipment, providing an efficient application process and faster approval, although it may involve varying rates and potential liens.
From the archive: This episode was originally recorded and published in 2021. Our interviews on Entrepreneurs On Fire are meant to be evergreen, and we do our best to confirm that all offers and URL's in these archive episodes are still relevant.
Brett is the founder and owner of KvellFit.com and AtoZBusinessFunding.com. Brett found himself frustrated and "out of the loop" when he tried to get traditional funding to expand his cash positive business KvellFit.com. He founded AtoZBusinessFunding.com to help small business owners like himself who are tired of the traditional lenders who deny funding to over 95% of the businesses that apply. Brett and his partners have funded thousands of businesses with millions of dollars for growth and expansion.
Top 3 Value Bombs
1. Having access to capital is critical to long-term business success.
2. Know the crucial things and questions to ask yourself to get funding.
3. Start preparing your personal and business affairs and orders before you apply for business financing, so when the time comes, you already have everything in order.
Connect with Brett to get help with funding - Brett's Email
Sponsors
HubSpot Grow better, faster with HubSpot’s all-in-one intuitive customer platform. Visit HubSpot.com to learn more
Airbnb Your home might be worth more than you think... Find out how much at Airbnb.com/host
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode