Can you set even smarter goals? Smart goal-setting tips for small business owners.

We have been setting goals for ages. Very handy when hunting for food. Setting goals ensures focus.

I can hear the order from the cave: “honey, would you please take a deer with you this time?” 

It may sound funny, but this is precisely where the importance of SMART goal setting lies. But honestly, how many goals did you really set and achieve yourself? The truth is that entrepreneurs struggle to formulate smart goals, let alone reach them. Below are some smarter goal setting tips for small business owners.

Table of contents

• Everyone sets goals, but a few set real smart goals
• How do you formulate a smart goal?
• How important can you make your goal?
• SMART goals wizard
• But what about following my intuition?

Everyone sets goals, but a few set real smart goals

Think back to your school days. You still had to pass school. Now you always had those overachievers who went for a minimum of nine. Others have long been happy if they didn’t have to defend their poor scoring at home.
Either way, at some point, you will have done your best, and in itself, that was goal setting.

However, there is a big difference between someone aiming for a nine, while someone else is happy with not failing. Now, if you think I mean the difference in ambition, that is not what I am suggesting. Instead, the vital point to make here is about how you set your goal. How do you formulate your goal, and how important is your target to you?

How do you formulate a smart goal?

Do you have to set goals in entrepreneurship? No, of course not. That’s totally up to you to decide. But if you want to grow your business, you will have to put a dot on the horizon. Nowadays, there is a handy acronym for that, setting SMART Goals. 

SMART stands for: 

• Specific
• Measurable
• Action-oriented
• Realistic
• Time-bounded

For example, let’s say this is one of your business goals: 

“I want to have written a blog of at least 300 words before the end of the day that tells you exactly how to set smarter goals.” 

A couple of things are striking. Please note that this goal is written in the past tense: “… have written a blog …” With that, you force yourself to have done something for a specific time. Now, suddenly it becomes a choice. However, had you written: “… I want to write a blog before the end of the day …” your brain believes it is a wish. Now, that is much less action-oriented. It is something you would like. Do you feel the difference?

Furthermore, your goal is also particular and measurable. It states the number of words, and what the blog is precisely about. Moreover, it is time-bounded, to make sure you feel the pressure of achieving in the foreseeable future. As you can see, it makes it all the more concrete and, as a consequence, more comfortable to execute and achieve. Most people start their pursuing their goal, but procrastinate along the way. 

How important can you make your goal?

I am not sure who came up with this handy mnemonic SMART. However, it is not entirely complete. Instead, I use SMARTER myself. The last two words represent Emotion and Result. 

• S for Specific: the more specific, the more focus you apply. Vague goals don’t inspire.
• M for Measurable: needed to measure your progress.
• A for Action-oriented: here, you indicate how you will achieve your goal.
• R for Realistic: the more challenging your goals, the more results you will achieve. But don’t be too ambitious, because then doubts will set in.
• T for Time-bound: there must be a deadline.
• E for Emotion: make the goal important to you. And make sure you get pleasure from achieving your goal.
• R for Result or Relevant: a goal that impacts your life or work makes the result much more relevant to achieve.

Emotion

Maybe you didn’t feel like going to school or trying to do your best. That brings us to the E of Emotion. One of the smart goal-setting tips for small business owners is how vital that goal is to you.

To what extent have you connected yourself to your goal? Or, how well can you attach yourself to it emotionally? 

Result

Besides how emotionally involved you are with your goal, it depends on how important or relevant the outcome is for you. That directs us to the R of Result. One of the other smart goals setting tips for small business owners is what yields your target?

How will you benefit from the result if you reach it? If it is that vital to you, you will experience a different emotion, in contrast to if you don’t care. By actively looking for what the goal will bring you AND to what it ultimately contributes, it will bring in more focus and, ultimately, more results!

Check out this Video on GOALS

SMART goals wizard

Many small business owners struggle to set goals. Even though they are better goal-setters than the average population, they perform poorly in formulating their goals. Moreover, the badly written goals hinder achieving them. That’s an even bigger problem. 

Because small business owners fail at writing their personal goals smartly, they never reach their goals. They would not even have reached their goals if they tried. That’s why we have designed and developed a smart goals wizard that helps business owners step by step and intuitively formulate a proper smart goal.

But what about following my intuition?

Some entrepreneurs prefer to follow their intuition. There is nothing wrong with that. Yet, is setting goals still appropriate? However, setting goals doesn’t have to be counterproductive to following your gut feeling. It would help if you used your intuition to feel what direction you should be heading. 

What do you want instead of being forced to do something? When your gut feeling directs you into a different path, enthusiasm, and passion often evolve from that. It generates so much energy that smarter goals are automatically set. That goal may even become crucial to you. Thus, the E and the R are even more strongly felt in your SMARTER goal.

Without a goal, no goals

Dr. Martijn Driessen

Big
Hairy
Audacious
Goal 

 The startup ecosystem pulsates with innovation, ambition, and the drive to create impact. Yet, the path from a brilliant idea to a successful enterprise is often riddled with challenges. Enter the realm of business coaching—a lifeline for many budding entrepreneurs. Business coaches play a pivotal role by offering guidance through the intricate maze of decisions and strategies that startups encounter. They provide strategic insights and enhance founders’ personal development, ensuring the individual and the business grow. With the right coaching, startups can navigate hurdles more effectively, turning potential pitfalls into stepping stones toward success.

Challenges Faced by Startups

The startup ecosystem is a dynamic and ever-evolving space, buzzing with innovation, opportunities, and, undoubtedly, challenges. For every success story we hear, countless others face setbacks, often not due to a lack of vision or effort but because of unforeseen hurdles that come with charting unfamiliar territory.

Startups often grapple with a myriad of challenges that can range from:

• Financial Constraints: Limited capital can hamper growth, especially in the initial phases, where revenue streams might not be stable.
• Team Dynamics: Building a cohesive team with the right skills and mindset, all while maintaining a harmonious work culture, can be taxing.
• Market Validation: Ensuring the product or service meets a real need in the market and effectively reaches the target audience can be daunting.
• Operational Hiccups: From supply chain issues to regulatory compliance, the operational aspects can be overwhelming.

Common Pitfalls and the Role of Coaching

In their enthusiasm and haste, many startups might overlook market research, undervalue marketing, or even neglect the importance of a solid business canvas. These oversights can be detrimental in the long run.

Business coaching for startups intervenes precisely at these junctures. Coaches, with their seasoned perspective, can:

• Spot Red Flags: They identify potential pitfalls before they become pressing issues, allowing startups to course-correct early.
• Offer Tailored Solutions: Every startup is unique, and coaches help devise custom-fit strategies for a business’s specific needs.
• Provide Moral Support: Beyond just business strategies, coaches serve as support pillars, helping founders navigate the emotional highs and lows of the entrepreneurial journey.

Understanding the startup landscape is pivotal for success, and with a coach, startups are better equipped to turn challenges into opportunities for growth and innovation.

Key Areas of Focus in Startup Coaching

As startups embark on their entrepreneurial journey, the roadmap to success often requires a multifaceted approach. In this context, business coaching is a compass, guiding startups through several key areas critical to their growth and sustainability. Let’s delve deeper into these focal areas:

1. Vision, Mission, and Purpose Alignment

Startups thrive with a clear sense of direction. Coaches help founders:

• Articulate a compelling vision for the future.
• Define a mission that communicates the company’s core objectives.
• Ensure that every action and decision aligns with the startup’s overarching purpose.

2. Strategy Development and Business Modeling

A solid foundation is vital for any startup’s longevity. This involves:

• Crafting actionable strategies based on market research and competitive analysis.
• Designing a robust business canvas that ensures profitability and sustainability.
• Periodically revisiting and refining the model in response to changing market dynamics.

3. Building a Strong Team and Fostering a Positive Culture

People are the backbone of any business. Coaches assist in:

• Identifying the right talent that complements the startup’s needs.
• Instilling a culture that promotes collaboration, innovation, and mutual respect.
• Addressing interpersonal conflicts and ensuring a harmonious work environment.

4. Effective Financial Management and Securing Investment

Cash flow and funding are startup lifelines. Coaches guide founders in:

• Planning and managing finances to ensure the business remains solvent.
• Crafting compelling pitches for potential investors.
• Navigating the complexities of equity distribution, venture capital, and other funding sources.

5. Scaling and Growth Strategies

As startups stabilize, the focus shifts to expansion. Here, coaches play a pivotal role by:

• Helping startups identify new markets and opportunities.
• Advising on product diversification or enhancements to meet evolving market needs.
• Strategizing on infrastructure, resources, and processes that support growth without compromising efficiency.

Startup coaching is an expansive domain, encompassing everything from foundational elements like vision and strategy to complex challenges like scaling. With expert guidance in these key areas, startups are better poised to navigate the tumultuous waters of entrepreneurship and chart a course toward sustained success.

The Importance of Soft Skills in Startup Success

While hard skills, technical knowledge, and business acumen are undeniably essential, the significance of soft skills cannot be overstated. These intangible qualities, which encompass interpersonal skills and personal attributes, often play a pivotal role in determining the success trajectory of a startup. Fortunately, business coaches can help you and your team develop these skills.

Let’s explore some of the most crucial soft skills and their impact on startup success.

1. Emotional Intelligence and Leadership Development

Emotional intelligence (EI) is the ability to recognize, understand, and manage our own emotions while empathizing with and influencing the emotions of others. For startup founders, Emotional intelligence aids in self-awareness, self-regulation, and resilience – key traits in the unpredictable startup ecosystem.

Coupled with EI, effective leadership fosters trust, motivation, and team cohesion. Leaders with high EI can navigate challenges while maintaining team morale and ensuring everyone remains aligned with the startup’s goals.

2. Communication

Effective communication is the bedrock of any successful organization, especially for startups where clarity and speed are paramount.

Founders and team members must articulate their ideas, concerns, and feedback transparently, ensuring no ambiguities can lead to misalignment or errors. 

Active listening is as vital as articulation. It fosters understanding, strengthens team dynamics, and helps resolve problems quickly.

3. Negotiation

Startups often find themselves at the negotiation table with investors, suppliers, partners, or customers.

Effective negotiation skills ensure that outcomes benefit all parties, fostering long-term relationships and sustainable partnerships. A successful negotiator understands the nuances of give and take, approaches situations strategically, and knows when to compromise and when to stand firm.

4. Conflict Resolution

Conflicts are inevitable in any organization. Their management, however, determines the health and culture of the startup.

Understanding and addressing differing viewpoints empathetically prevent minor disagreements from escalating into major disputes. A systematic approach to conflicts, focusing on problem-solving rather than finger-pointing, promotes a positive and collaborative work environment

For more resources click on the links in the side menu.

 Is Corporate Venture Capital Right for Your Startup?

How do you determine if corporate venture capital is right for your startup?

To help you determine if corporate venture capital is right for your startup, we asked startup founders, investors, and business leaders this question for their best pieces of advice. From making sure you have similar goals and expectations to considering the VC’s location, there are several signs to look for that may help you when determining if corporate venture capital is right for your startup.

Here are eight signs to look for when determining if corporate venture capital is right for your startup:

• Be Sure You Have Similar Goals and Expectations
• You Have a Product Used by a Specific Company
• Get an Insider Look at Parent Business
• Ensure Aligned Vision With Key Stakeholders
• Assess Your Company’s Needs
• Assess Sustainability Over the Long Term
• Research The Venture Capitalists’ Names and Reputations
• Consider the Location of the VC Investor

Be Sure You Have Similar Goals and Expectations

The most important thing to look for when determining if corporate venture capital is right for your startup is that the firm you are pitching is actually the best fit for the stage of your business. While it may seem like a good idea to get a big, fancy investor for your startup, the reality is that it can actually be a hindrance to your business if it’s not a good fit.

Large investors are often looking for companies with a large profit margin and a proven track record of success. If you’re looking for a VC who can help you grow and develop your business, you’ll want to be pitching to a firm that has similar goals and interests as you and be reasonably sure that you can comfortably meet their growth and financial expectations.

You Have a Product Used by a Specific Company

There are many different factors to consider when determining whether or not corporate venture capital is right for your startup. One key sign to look for is whether or not you have a product or service that could be used by a specific company. If you have a product or service that would be a good fit for a particular corporation, then pursuing corporate venture capital may be a good option for you.

Corporate venture capitalists are often interested in investing in companies that have products or services that could be used by their own businesses. Therefore, if you have a product or service that would be of interest to a specific corporation, then pursuing corporate venture capital may be a good option for you.

Get an Insider Look at Parent Business

Understanding the relationship between the CVC and its parent business might help you decide if it’s the best option for your startup. Speak with personnel at the parent business to discover more about the CVC’s internal reputation, its connections inside the organization, and the KPIs that the parent has for its venture arm.

Ask questions about how the CVC has been able to communicate its vision internally, the depth of its connections to the various parent divisions, and whether the CVC will be able to provide the internal network with what you require in order to get a sense of the relationship between the CVC and parent firm.

Additionally, you should find out how the parent company evaluates the CVC’s performance and what kinds of reporting and communication are anticipated. All this will help you determine whether the CVC is right for your startup or not.

Ensure Aligned Vision With Key Stakeholders

Make sure your goals and views align with CPC stakeholders. For example, if you want to keep the integrity of your startup – small, innovative, and creative, you need to make this known and be sure key stakeholders are on board.

The last thing you want to do is get in a position where you accept funding, but you no longer have control of your vision.

Assess Your Company’s Needs

There are a few things to keep in mind when determining if corporate venture capital is right for your startup. First, consider your company’s stage of development. If you’re just starting out, it may be difficult to meet the requirements set by corporate venture capitalists. They typically invest in later-stage companies that have already gained some traction. Second, look at the structure of your business. Venture capitalists often prefer companies with a leaner structure and fewer employees. This allows them to have a greater impact on the company’s direction. Venture capitalists usually provide more than just financial support – they can also offer valuable resources and mentorship. If you’re still not sure if corporate venture capital is right for you, consider speaking with a professional advisor.

Assess Sustainability Over the Long Term

In my opinion, for it to be worthwhile from the perspective of an investor, it must be something with longevity. Though not normally from the perspective of a venture capitalist, a short-term project may somehow be viable and profitable. Venture capitalists invest millions of dollars and seek multiple times returns on their investments. Due to this, VCs place a strong emphasis on an idea’s long-term viability. They won’t invest if they don’t think the shelf life is long enough.

Research The Venture Capitalists’ Names and Reputations

I think that each venture capitalist has a unique reputation, which is based on the VC’s experience, skill, and historical results. Future investment rounds are frequently influenced by the name and reputation of a VC and reflect nascent firms. Affiliates with a good reputation will typically add substantive and signifying value to your business. Be mindful of the reputation of any possible partners because it will be linked to your business!

Consider the Location of the VC Investor

One sign that you should target corporate venture capital (VC) investors for your startup is geographical proximity. Investors that are close to your company can provide valuable access to resources and networks, which can be helpful as you scale. Additionally, these investors may be more familiar with your local market, which can give them a better understanding of your business.

I followed this rule and narrowed down my search for VCs within my country – Taiwan. And ultimately I was lucky to find an amazing partner that lived in my city. This close proximity make our interactions frequent and more effective. Therefore, the location of VC is an important consideration when finding the right fit for your startup.

To learn more about invoice financing and how to improve your cashflow without expensive loans click on the picture or scan the barcode

 

Why 3 Out of 4 South African SMEs Still Can’t Raise Capital

I took this article from the Venture Burn website 

https://ventureburn.com/2025/06/why-3-out-of-4-south-african-smes-still-cant-raise-capital/

World SME Day on 27 June is supposed to be a celebration of entrepreneurial grit. But for most small businesses in South Africa, it also exposes a harsh reality: only 1 in 4 SMEs raise enough capital to grow. The rest remain stuck — unable to hire, scale, or launch because their funding asks go nowhere.

And it’s not because money isn’t available.


“Capital isn’t scarce in South Africa. Fundability is,” says Luncedo Mtwentwe AGA(SA), Managing Director of Vantage Advisory and host of the SAICABiz Impact podcast. “Most startups aren’t investor-ready — and by the time they realise this, it’s already too late.” Fundability is,” says Luncedo Mtwentwe AGA(SA), Managing Director of Vantage Advisory and host of the SAICABiz Impact podcast. “Most startups aren’t investor-ready — and by the time they realise this, it’s already too late.”

Funding Is Not a Lifeline. It’s a Skill.

South Africa’s entrepreneurs often make the same mistake: they only start looking for capital when the runway’s almost gone. By then, desperation has replaced strategy. “It’s no longer about potential — it’s about patchwork,” says Mtwentwe.

This reactive approach hurts startups at every level. Valuations take a knock, investor confidence drops, and founders lose leverage. Instead, Mtwentwe believes investor readiness must become a core leadership skill — developed long before funding is needed.

His view is echoed across the startup ecosystem. From poorly structured governance and messy financials to shallow teams and vague pitches, SA startups are falling short of what investors expect. Even those with strong ideas often can’t articulate how they’ll scale, execute, or generate returns.

The Geography Trap

There’s also a hard-to-ignore location bias. “Access isn’t just about merit. It’s also about geography and networks,” says Mtwentwe. Founders outside the main metros — or without the right advisors or co-founders — often find themselves sidelined.

“Unless you’re in the right province, you can forget about raising here,” one founder told

This funding friction is driving some South African founders to raise abroad, bypassing local capital altogether. But as Mtwentwe points out, that’s not a scalable strategy — it’s a workaround.

To learn more on invoice financing head over to https://modernworkingcaptialtechniques.com

Why Capital Skips South Africa

It’s not just local bias. Capital is flowing into African tech but often into Kenya, Nigeria, and Egypt, where investor pipelines and support systems are better aligned. Speaking on the SAICABiz Impact podcast, investment professional Zama Khanyile CA(SA) pointed out that impact storytelling is a missing link.

“If we want global capital to land in SA, we need to talk about outcomes, not just income,” she said.

A Roadmap to Fundability

Despite the bleak numbers, the outlook isn’t hopeless. “You don’t need perfection — you need preparation,” says Mtwentwe. With smart execution, even lean startups can build fundable foundations. His top advice?


1. Start Early: Give yourself 6–12 months to prep before you actually need capital.

2. Get Your House in Order: Have clean books, a working compliance setup, clear operating systems, and actual contracts.

3. Team Before Tech: “Investors fund people first,” says Ncumisa Mkunqwana CA(SA), CEO of Chapu Chartered Accountants. A weak back office can kill a strong product.

4. Know Your Investor Fit: Match your stage and story with the right funder. Green finance and impact-driven VCs are opening new doors.

5. Pitch Growth, Not Just Vision: Show traction — even if it’s just early customer interest or a waiting list.

6. Get a Mentor, Not Just a Deck: Advisors and incubators can be your bridge to credibility and readiness.

7. Show You Can Sell: Investors back revenue engines. No traction, no funding.
Time to Shift the Mindset

As B20 and World SME Day discussions heat up, the takeaway for South African founders is simple: capital follows structure, not just ambition. And structure isn’t about admin — it’s about building trust.

Raising money isn’t just a milestone. It’s a signal that your business is investable, executable, and scalable. That means it’s time to stop hoping for luck and start getting fundable.

To read more of our articles on finance and fundraising, see out previous blogs.

 

How a bank looks at your business

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Table of contents

1. What factors do banks consider before lending money?
2. What do financial institutions look for in firms?
3. What ratios do banks look at for business loans?
4. Do lenders look at spending habits?
5. What can a lender see?
6. How does a bank decide how much to lend?
7.  

Financing is a key part of running a successful business: It allows you to invest, to purchase inventory, to manage your cash flow and even perhaps to acquire a competitor, to name only a few ways you could use a loan.

However, banks are also businesses. They need to be careful and diligent about lending only to businesses that are likely to repay in full and on time.

To make sure you maximize your chances of getting a business loan, it is important to understand how banks look at your business.

What factors do banks consider before lending money?

When reviewing a loan application, banks and financial institutions will generally analyze four main factors.

1. The financial strength of your business

To make sure your company is on a solid financial footing, your bank will want to have a look at your financial statements.

This means looking at your results for the last couple of years, and comparing them to industry averages.

A rule of thumb is that your borrowing capacity is guided by your net income plus depreciation, less the annual amount of repayments of existing term debt. Basically, any profit you are earning is available to cover new debt service.

2. Assets

Banks will also be evaluating your assets, both as an indicator of your company’s strength, but also in order to identify collaterals that can be pledged as a security for the loan.

In the fishing industry, for example, a bank would likely want to know whether you own boats, gear, trucks, traps, and intangible assets like licences.

A bank may be willing to take your crab or lobster licence as a security because they hold significant value. In Lobster Fishing Area 36 or 38 which is part of the Bay of Fundy, for example, a lobster licence can’t be had for less than $1 million.

3. Your management credibility

You’ll want to demonstrate that you have the skills and experience necessary to successfully run your business. Highlight how your background has prepared you well to manage your project and bring it to fruition.

It’s also a good idea to surround yourself with professionals who can help you benefit from their experience.

Banks will also look at who is advising entrepreneurs, whether it be accountants or other experts.

4. Credit score

Your personal and business credit scores are important factors a banker will consider when you apply for a business loan.

Your business credit score is separate from your personal score. Your business credit score includes reports from firms that do business with your company, such as suppliers and financial institutions. Meanwhile, your personal score is based on your past personal credit behaviour, such as whether you pay your bills on time.

Besides meeting your payment due dates, you can keep your credit score healthy in other ways. Make sure you only apply for the credit you need and avoid opening multiple credit accounts. It’s also important to separate your business credit from your personal credit—use business loans, your business line of credit and business credit cards for business purposes only (i.e., to finance investments, purchase supplies and top up working capital).

Finally, know that a poor credit score may make it more difficult to obtain financing, but will not make it impossible: there are a number of strategies you can employ to obtain a loan when you have a bad credit score.

5. Your industry’s health

The strength of your industry is one indicator that helps determine how well a business will do.

In fisheries, for example, banks would look at catches first. Are they up or down? They would then look at prices. Where are they heading? In the end, your bank wants to be paid back, then this is an important factor.

What do financial institutions look for in firms?

In assessing whether to finance a small or medium business, financial institutions look for a number of green flags. The three most important will be the following.

1. Strong cash flow

Having a strong cash flow is the first green light lenders will be looking for.

Is the business generating enough cash flow to pay the debt? This is definitely the most important indicator. “Cash is king.”

2. Small amount of debt

Having too much debt can crush a business, but being too debt averse can get in the way of running a business efficiently, as loans can be an appropriate tool to manage and preserve cash flow.

All in all, banks will look at your level of debt, and whether it is in line with your industry.

3. Business owners with skin in the game

Finally, banks also like to see that entrepreneurs are investing their own money in the company. It is an indicator that they have skin in the game, and that they are sharing the risk.

If a business runs 100% on loans, it looks like the owners are not committed to the business. But, if they are investing themselves, the relationship with the bank is mutually beneficial. It becomes a partnership.

What ratios do banks look at for business loans?

Whatever your industry, lenders will look at two financial ratios which is interpreted in percentages.

Debt-to-equity ratio: The debt-to-equity ratio is calculated by dividing a company’s total debt by the total equity of its shareholders. It shows how much debt a company has compared to its assets, and measures both a company’s ability to service its current debt payments as well as its ability to raise cash through new debt, if necessary.

Debt-service coverage ratio: The debt-service coverage ratio equals adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, less current income taxes, distributions paid and unfunded capital expenditures incurred during the period) divided by the sum of current portion of term debt (how much principal is due in the next fiscal year) and interest expenses. It is a key measure of a company’s ability to repay its loans.

Depending on your line of business, a bank may also look at other industry-specific ratios.

In the hotel business, for example, banks will want to calculate your occupancy ratio, and perhaps perform sensitivity analysis to determine how a change in this metric would affect your financial performance. What if your occupancy goes down by 5%, can you still repay the debt?

Do lenders look at spending habits?

When trying to determine whether they will make a loan to your business, financial institutions will be scrutinizing your company’s spending history.

Is your spending in line with industry standards? A fishing company, for example, probably only needs one truck, not five or six. Business is conducted on the wharf, where the buyers will usually come pick up your catch. It’s a good sign when entrepreneurs are responsible with their spending, and business owners should know and understand that a bank might ask them to explain or justify certain spending decisions.

What can a lender see?

When reviewing your company’s loan application, a bank will be able to look at all the documents it has asked you to provide.

Those documents will most likely include your business’ financial statements as well as your personal credit report, since business owners’ personal credit habits are a good indication of the way they handle their business credit. “A bank may also ask for documents supporting your ability to reinvest in the company, such as bank statements or investment statements,” explains Daigle.

A financial institution will also be likely to ask for licences, if they are required in your industry, as well as quotes and purchase agreements if you are using the loan to acquire a piece of equipment or contract a service.

How does a bank decide how much to lend?

Lending ability is dictated first by cash flow.

Because banks are looking to reduce risk, they do not want to give a company more than it can handle. Their main focus will be analyzing how much money the business makes, and consequently, how much it can safely afford to borrow as well as specific financial ratios.

Banks will also consider whether your loan will help your business improve its revenue and profitability, thus increasing the odds that the loan will be repaid.

If a fisherman uses a loan to get a bigger boat, this new vessel may be used to increase the lobster catch from 10,000 pounds to 15,000 pounds, which goes right to the bottom line.

At the end of the day, these are the main factors: credit score, solid cash flow, impact of the lending project on the company’s finances, and healthy financial ratios.

For more on other ways to increase your working capital, visit: https://modernworkingcapitaltechniques.com

To know more about our coaching programmes and services, follow the links in the side menu.

Feel free to contact Neville on +27 83 417 0319