Welcome, If you want to raise money, you need to develop both a Business and Marketing plan.
The Plan is one of the first items a lender or investor will want to read.
And yes, First Impressions are everything
There are thousands of talented people possessing the desire to open their own business as a start-up, but are defeated by virtue of their lack of equity or a positive credit rating.
I myself know of a 3-person group of highly experienced professional Chefs who are currently seeking seed money to open their first restaurant in Northern California. Their unique concept has been four years in the making and they have everything they need to execute their plan to open as many as four duplicated units within the next five years except the funding to get it started. They have approached banks, lending institutions and the SBA all to no avail due mostly to one of the three having a less than desirable credit rating due to a divorce, and another being strapped by student loans. Apparently, it matters not to the lenders they have approached that one of the three has a credit rating of 830. Is this a matter of 'guilt' by association? Their concept is sound. Their business acumen is superb. Their commitment is solid. Their work ethic is unquestionable. Their business plan is progressive and dynamic. Yet they are regarded a 'risk' too great to be considered for a business loan. Understandably perhaps, they have completely soured on the notion that traditional lenders are going to help them achieve their goals.Knowing these people as I do, without a shadow of doubt, had I the available funds to help them I would do so without hesitation.
Private Commercial Funding has far surpassed the volume of conventional lending and has become the commercial capital source of choice. Private lenders and banks must both access the risk exposure which will have an impact on the final rates and terms, but all in all, private lenders have a much greater flexibility, can offer more creative methods of financing and are definitely open to negotiation. Each lender will have a slightly different loan worksheet and may have different expectations of the detail in your executive summary. Your documents must be 100% accurate, offer full disclosure and executive summary must tell the lender the entire story and entice the lender to consider your request for funding. Prepare, work with your broker or consultant, and make a winning presentation. "First impressions are everything here".