Page 6 - CEEM Shopping Mag February 2020

7 Sources of Business Funding

By: M. Bernard Edmonds, I

Generally, you will need to provide:

A detailed project description
An explanation of the bene ts of your project
A detailed work plan with full costs
Details of relevant experience and background on key managers
Completed application forms when appropriate
Most reviewers will assess your proposal based on the following criteria:

Signi cance
Approach
Innovation
Assessment of expertise
Need for the grant
Some of the problem areas where candidates fail to get grants include:

The research/work is not relevant
Ineligible geographic location
Applicants fail to communicate the relevance of their ideas
The proposal does not provide a strong rationale
The research plan is unfocused
There is an unrealistic amount of work
Funds are not matched

7. Bank Loans
Bank loans are the most commonly used source of funding for small and medium-sized businesses.
Consider the fact that all banks o er di erent advantages, whether it's personalized service or
customized repayment. It's a good idea to shop around and nd the bank that meets your speci c needs.

In general, you should know bankers are looking for companies with a sound track record and
that have excellent credit. A good idea is not enough; it has to be backed up with a solid business plan.
Start-up loans will also typically require a personal guarantee from the entrepreneurs.

Reference source BDC, Inc.

7 Sources of Business Funding | Page 4 of 4