The Sherbrooke hosts of 36.24 le podcast, Chloé and Camille, recently invited Marianne Auclair, Regional Director for Estrie, and Juliette Kehr, financial analyst, to talk about business financing on their podcast.
Episode no. 20, entitled “5 reasons you are not getting business financing,” focuses on problems that can sink a business financing application and solutions to these.
The business financing step is still widely misunderstood, even among entrepreneurs. While essential to starting or growing a business, financing is still the subject of many preconceptions.
With the goal of debunking myths, our colleagues agreed to bring their expertise to bear. One of the hosts recently acquired a business in Sherbrooke, and her experience was fodder for a dynamic, interesting discussion.
The first common mistake discussed is waiting too long to start the search for financing. Entrepreneurs need to know that the process is not instantaneous. There can be delays – sometimes long ones – before getting a loan.
Another mistake our colleagues noted that regularly results in a refusal is not providing complete information. Sometimes entrepreneurs fail to provide documents or information that can influence the final decision, mistakenly believing that they are not relevant. And yet, these “details” often tip the balance toward a refusal.
Targeting a saturated market is also a bad choice when seeking financing, as is an improper evaluation of financial needs. The amount requested must be realistic: not too low, not too high. Either extreme can delay the project and result in a negative response.
The fifth thing to avoid is focusing too much on interest rates. Marianne noted that in addition to rates, you should choose the right financial product, trust the lender, and consider the institution’s global offer, such as, in our case, complementary services and support for entrepreneurs being financed.
Finally, Marianne and Juliette focused on the importance of being sincere and not hesitating to contact the person managing the financing dossier if the business is in difficulty or experiencing a dip in performance. Institutions do not want you to fail and can offer solutions to support you in turning the situation around. Entrepreneurs who move quickly to take steps to increase the vitality of their business will never be judged negatively: on the contrary.
This episode of 36.24 le podcast is highly instructive. It has a host of information helpful to both neophytes and experts and addresses many questions entrepreneurs have about seeking business financing.