Fund raising is a distant dream for many mid-sized companies. Run on the mill thoughts say that fund raising is not for us. It is only for those elite class of people who can woe the investors and honour their most unreasonable conditions and adhere to their weirdest whim.
Well, that’s not true at all. Let us, in today’s article find out what are top five myths that surround fund raising and how ProBizAdvisor busts them all with scientific evidence:
FUND RAISING IS A COMPLICATED AFFAIR:
For most people who haven’t found the right set of experts, fund raising, whether equity or debt can be quite daunting. They fail to understand a simple fact that it is an expert role. Like how a family doctor cannot perform surgery, a normal CA or a consultant cannot do an effective fund raise.
IT IS VERY EXPENSIVE TO RAISE FUNDS:
Fund raising is an ideal combination of showcasing the strengths of the entity in terms of its trust, creditworthiness, liquidity, solvency & repayment capacity. At ProBizAdvisor.com, we capture the real value of business from the financials, to build a case for funding. Once a strong case for funding is created, not only the cost of funds come down, but even the process of fund raise and investor relations beyond, becomes smooth.
INVESTORS TAKE A VERY LONG TIME TO DISBURSE MONEY:
Investors need comfort on the entity, its repayment capacity and the credibility of people behind the show. Once they have this, whether is debt or equity, funds can show up very quickly in your account and that too without too many strings attached.
INVESTORS & THEIR TERMS ARE ALWAYS UNREASONABLE:
No investor or banker is foolish enough to risk his / her money by putting unreasonable terms which provide no elbow room to the borrower. In fact, the investor bets on the skill of the borrower, not only to safeguard his interest but also to grow his investment over a period of time.
IF WE CAN’T REPAY, IT IS THE END OF THE WORLD:
Frankly, no investor or banker would like to see his money going down the drain. And honestly all borrowers have peak & lean times. In the lean time, when there is a possibility of delay or default in honouring one or more instalments or milestones, the funding agreement, if drafted carefully, early on would give a breather to the borrower in his difficult time. A trusted partner like ProBizAdvisor.com would ensure that all the bases are well covered up, while an effective fund raise is carried out.
Do comment on what you feel are the challenges that you have faced while raising funds.