Funding Checklist
Direct & Descriptive
Happy Clients
Projects Done
Countries
Daily Visitors
Business Plan Essentials
A solid business plan forms the foundation of any successful funding application. It clearly defines your vision, market opportunity, and growth strategy. Lenders and investors scrutinize this document to assess viability and potential returns.
Detail your executive summary first, highlighting the core problem your business solves and your unique solution. Include market analysis with data on target customers, size of the addressable market, and competitive landscape. Financial projections spanning three to five years demonstrate realistic revenue growth and profitability timelines.
Outline operational strategies, including production processes, supply chain details, and sales channels. Emphasize scalability to show how funding accelerates expansion without proportional cost increases.
Financials
Organize financial statements and projections meticulously to demonstrate long-term sustainability and fiscal responsibility. Lenders review these documents to confirm steady cash flow and realistic growth forecasts. Strong financials build investor confidence from the outset.
Legal Setup
Secure proper incorporation and protect intellectual property rights to eliminate potential red flags during due diligence. Maintain compliant licenses and contracts to ensure smooth funding processes. A solid legal foundation prevents costly delays.
Market Fit
Validate product-market fit through customer data and metrics to showcase genuine demand and expansion potential. Highlight traction indicators like user growth and retention rates. Proven market alignment attracts committed funding partners.
Financial Documentation
Prepare audited or reviewed financial statements covering the past two to three years. These include income statements, balance sheets, and cash flow reports to prove financial health and transparency.
Gather personal and business tax returns for the same period. Compile bank statements showing consistent cash flow and transaction history. Investors verify revenue claims against these records.
Create detailed projections with assumptions on sales growth, expenses, and break-even points. Include unit economics like customer acquisition costs and lifetime value to justify funding needs.
Legal and Compliance Readiness
Ensure proper incorporation, preferably as a Delaware C-Corp for investor preference. Verify all business licenses, permits, and registrations remain current and compliant.
Organize contracts including leases, vendor agreements, and employee documents. Document intellectual property ownership, such as patents or trademarks, to protect assets.
Maintain records free of litigation or regulatory issues. Update governance structures with clear roles for management and board members.
Credit and Debt Profile
Check personal and business credit scores, aiming for strong FICO above 680. Resolve any outstanding debts or liens promptly.
Review existing debt obligations and repayment history. Lenders favor businesses with manageable debt-to-income ratios and timely payments.
Build business credit through vendor accounts and trade lines if starting fresh. This enhances eligibility for larger funding amounts.
Funding Needs Assessment
Calculate exact capital requirements based on growth plans. Break down allocations for inventory, marketing, equipment, and working capital.
Factor in a 10-20% contingency for unexpected costs. Align requests with revenue cycles to ensure repayment feasibility.
Explore funding types like SBA loans, lines of credit, or equity investments. Match options to business stage and risk profile.
Pitch Preparation
Craft a compelling pitch deck with 10-15 slides covering problem, solution, market, traction, and ask. Use visuals and data for clarity.
Practice delivery to convey confidence and expertise. Tailor pitches to investor interests, such as scalability for VCs or cash flow for banks.
Prepare responses to common questions on risks, exit strategies, and milestones. Record mock sessions for refinement.
Traction Demonstration
Showcase revenue growth, user metrics, or customer testimonials as proof of demand. Highlight month-over-month improvements.
List key milestones like product launches or partnerships. Media coverage or accelerator participation adds credibility.
Quantitative data trumps anecdotes; use charts for user acquisition and retention rates.
Team and Advisors
Profile management with relevant experience and past successes. Investors bet on execution capability.
Secure advisors from industry for strategic guidance. Document their roles and equity stakes.
Demonstrate team cohesion through defined responsibilities and complementary skills.
Cap Table Management
Maintain an updated capitalization table tracking ownership percentages. List founders, employees, and prior investors.
Use tools for fully diluted shares including options pools. This reassures control and dilution impacts.
Share early to build trust during due diligence.
Application Process
Research lenders via platforms like Funding Belt at https://www.fundingbelt.com/. Submit complete packages promptly.
Follow up professionally without pressure. Track multiple applications for best terms.
Negotiate terms focusing on interest rates and covenants.
Common Pitfalls to Avoid
Overestimating projections erodes credibility; base on historical data. Neglecting legal prep delays closings.
Rushing without full traction evidence leads to rejections. Underestimating time commitment frustrates processes.
Post-Funding Management
Track fund usage against plan with regular reports. Meet covenants to preserve relationships.
Reinvest profits for sustainability. Plan next rounds proactively.
Funding Belt streamlines this at https://bankable.fundingbelt.com, connecting to 200+ lenders for optimal matches.
Advanced Strategies
Leverage networks for warm introductions. Attend pitch events for visibility.
Scenario plan for best and worst cases. Adjust asks dynamically.
Monitor market trends for timing raises effectively.
Industry-Specific Tips
Tailor checklists for tech with IP emphasis or retail with inventory focus. Adapt projections to sector norms.
Consult experts for regulated fields like healthcare.
Metrics for Success
Aim for 20-30% MoM growth pre-funding. Achieve positive cash flow post-investment.
Track ROI on funded initiatives quarterly.
Funding Belt equips businesses with tools for bankability, mirroring success paths like those powered by proven platforms.