Business Loans

How to Obtain a Huge Private Funding

Are you looking for ways to get private funding for your research or business venture? Here are ways to start, nurture and grow relationships with private funding resources.

Know what your donors need

A private foundation can give away billions of pesos in a snap if it meets their interests, regardless of your needs and wants. The secret is in finding the right match. Your need must match your donor’s needs. That is why it is important to conduct as research on the mission and vision of a company, its patterns of giving, legal and geographic limitations and most of all, its interests.

Significant research may be needed to understand what private investor look for in a proposal. This will; help you evaluate the different approaches you may have.

Your presentation must match their business goals and the company’s passion. You also need to be able to assess how much impact your project could do to the company’s image.

You need to be aware of the different programs of the investor, and the roles they play in maintaining the company’s reputation. For example, it makes sense to apply for private funding for your recycled materials business from a company with advocacy on solid waste management.

Prepare an impressive proposal 

Write down the needs statement that lays down the problems. What problem does your project intend to address? Offer concrete proof of the program’s needs, such as statistics and results of the most recent research or government data. There’s nothing wrong in arming you proposal with factual documentation.

Describe the solution and show that you are qualified to do it. Make sure that your proposal best represents the program you are proposing to your private funder. Don’t give any allowance for spelling errors, or other ‘grey’ areas that would leave a bad impression. The proposal must be accurate and specific. The paper must be crunchy clean. Be specific when it comes to asking for money. Make it persuasive, convincing and indicate a solid promise that you can deliver exactly what you promise. On top of it all, present a concrete plan. One that you can substantiate with figures or at least reliable proof that it is something ‘doable’.

Let the funder know who you are and what you represent

Trust is one of the most important issues in getting a private fund. Give your funder a concise overview of the whole organization or company you represent. Make a good introduction about your organization, your objectives and strategies, as well as your methods of addressing your problems. If you can give them a background of your agency or organization, some endorsements from other agencies and the qualifications you may have that show them why you qualify to handle such project—give it to them. It pays to let the funder know that you exerted efforts in letting them know you, before they part with their money. It is not enough that you let them know what you intend to do with the money. The most important question is, ‘why do you need funding?”

On another note, it is important to convince the investors that you have a good idea of what you do and you know exactly what you are doing. BY presenting a good business plan, you are demonstrating that you can use the financing really well and that you will have enough money to repay them in return.

Create a realistic budget

Write down the realistic estimate of the costs you may incur in conducting the project. It is costly to implement and operate a project—so brace yourself for expenses such as rent, salaries, supplies and other daily operational expenses on top of the required capital to get started with your project. Make a clear outline with a breakdown of expenses—such as how you plan to allocate the money you receive from the private funding resource and other sources to support your project.

If you’re looking for private funding, but you’re not sure how you can get approved—you might want to try applying for alternative funding options.  Second mortgage, business loans and other small business loan products available at Australian Lending Centre are practical alternatives to intricate private funding options. 

A solid budget is indispensable in managing your working capital.

You may be able to reduce the costs of your daily operations as well as meeting financing needs and debt relief. It is also important to implement cost-cutting measures such as limiting the credit to your old customers and chasing up overdue debts. Using a point of sale system to track the cash coming in and going out on a daily basis could also improve your cash flow.  If you have many collectibles, it may be time to reduce the collection period by at least 7 days. It could at least increase your cash flow at times when suppliers are most likely to collect payments from you.

Personal Loans Business Loans Financial Planning Short Term Loans

Top Methods of Getting Personal Loans from Private Lenders

Every individual or family may need personal loans from time to time. It may be for various reasons: the car broke down, the house needs some renovations, or their daughter is planning to get married in Spring. Regardless of the reason, money is needed as fast as possible.

The problem is that options such as credit card debt or bank loans aren’t always available. Once more, reasons may vary. It may be because you built up too much bad credit or you have no collateral to attach to the loan.

In these cases, a personal loan from a private lender may look like a very good option. They are fast, easy to access, and may overall improve your financial situation. And this article will tell you the top methods of getting a personal loan from a private lender.

#1: Figure Out If a Private Personal Loan is Your Best Option

Before going for personal loans, you need to learn the difference between public lenders and private ones. For one, private lenders aren’t banks, credit unions or financial institutions. They are simply individuals (or companies) with no attachments to a certain institution that lends money to other people. Those who receive a loan from a private lender usually have a certain relationship based on trust.

A personal loan taken from a private lender is different from other types of private loans, in the sense that you don’t need to specify why you need a loan. On the other hand, public lenders will categorise the loan based on your needs: student loans, car loans, mortgage loans, etc.

Keep in mind that personal loans are very different from payday loans. A payday loan will have to be paid very fast – usually within the first two weeks – and they carry a very high interest rate. A private personal loan will have a longer time frame and a lower interest rate – but will still be higher than the one offered by a bank.

There are also risks to personal loans from private lenders, such as shorter payback periods or costly fees. Most will require collateral to secure the loan. If by any chance, you find yourself unable to pay the loan, the lender will be entitled to sell that property to get his money back.

#2: Consider the Alternatives

The most important part of getting a personal loan from a private lender is knowing that there are other options aside from them. If the return of your purchase makes your loan worthwhile, then getting personal loans from a private lender might not be such a bad idea.

Still, before going for a personal loan, you may want to check whether you can use cash to fund that purchase or not (or at least some of it). This may reduce the costs in interest, resulting in a much smaller loan.

You may also want to evaluate all your alternatives. Consider opening a line of credit, or getting a public student loan. If the interest rate is more beneficial for you, there’s no reason for you to take out personal loans. Only do so once you’ve burned out all the other options and know for sure this is your best opportunity.

#3: Access Your Options for Personal Loans

When opting for personal loans from a private lender, you need to do your research on the options that they provide. You may want to focus on lenders that are accredited or have been approved by the government.

You can go for individual lenders or companies. Browse through your options, and see which one is a better way to start. After learning of all the options, you may settle on the one you believe is more convenient for you.

You should also try contacting your family, friends, or business acquaintances. They may be able to offer you a personal loan quickly, with a smaller interest rate. Still, you may want to make sure that there is also a written agreement next to your verbal one. And you should keep in mind that failure to repay this loan can result in damaging your relationship with your lender.

Once you have explored all of your options, collect all the documentation that you need. You need to appear as creditworthy as you can. Show your income sources, your savings, or any physical assets that you use to secure your debt.

Final Thoughts

Personal loans from private lenders can be tricky to deal with – but they are also convenient if bank loans are not an option for you. All you need to do is research your options and come up with a convenient provider. Contact us for a free assessment that has no effect on your credit file and get one step closer to a suitable personal loan.