Trying to put a square peg into a round hole?

Has the bank said no? You are not alone! I recently helped a self-employed client who needed additional funding to get a product to market. The product had good market appeal, which would over time generate significant income. However, when he approached his bank, he was told "the numbers didn't work for them." He was then forced to fund the development with expensive short-term debt after he had exhausted his personal financial resources.

For salaried workers, "the numbers" would simply be printed on a recent payslip, proving their income. But for the self-employed, who have various clients, a diverse product range and with no guaranteed paycheque from week to week, the requirements are more complex. The required documents and discovery phase can be rigorous, the evidence requirements have many moving parts and potential land mines it is easy to get tripped up.

The good news is that there are a number of other options and avenues if the reply is “the numbers don’t work”. In this case I was able to secure the funding required, reduce total overall funding cost and match the loan structure and repayments to reflect projected cash flows.