When Will Business Financing Be Required?
The timing for acquiring business capital is also very important.
When targeting financing companies to potentially work with, this will be one of the first things you should be trying to qualify for yourself. The reason for a quick initial review on both sides of the “when” capital is required is to see if the estimated review, approval, and funding process can potentially be lined up to the timeline of the business that’s applying for capital.
Too often there is a lack of a realistic assessment for comparing when funds are required and when they could be made available. When this happens, the resulting delays can range from being a minor inconvenience to the business applying for financing, to being catastrophic in terms of real cost and/or opportunity cost, so it’s important to have an initial discussion around the “when”.
In many cases, the business will wait too long to start the financing process and assume that it won’t be too difficult or take too long to get the required amount of financing in place for the preferred terms.
"In situations where capital is required quickly, just remember that lower cost money is slower moving money"