The Funding Essentials – 5 Steps to Prepare Your Business for Capital

Every business is unique, but for many, funding is a vital part of a successful growth strategy. No matter the industry, business owners can relate to the universal experience of searching for capital to drive growth and attain success. But with so many funding options available and a complex process to find the right fit, many small business owners hesitate to take the first step toward funding their future.

Understanding that each business has unique needs and challenges is central to how we approach funding at Libertas. Through personalized attention and a focus on building relationships, we help business owners navigate the funding landscape with confidence.

We'll explore some fundamental ideas behind business funding and guide you on making the most of your capital. Here are five key steps to get your business funding-ready.

Step One – Organize Your Business Financials

Confirm that all your business financial statements (balance sheet, income statement, cash flow statement, etc.) and operational documents are in order before starting the funding process. This means having all files on hand, legible, and available to share with a potential capital provider when asked.

When working with us at Libertas, clients connect directly to their bank to transfer documents securely. You simply log into your bank or accounting system, similar to how you’d access an online payments platform. Our approach prioritizes making this process straightforward, allowing us to focus on understanding your business needs.

Establishing a secure connection with your bank ensures reliable access to documents and removes unnecessary friction from the funding process.

Step Two – Review Your Credit History

When applying for business funding, you'll be asked to provide your personal and business credit scores for the capital provider to assess if you meet their minimum requirements. Before beginning the process, ensure you've reviewed both credit scores and unlock/unfreeze any accounts.

We at Libertas understand that credit scores don't always tell the complete story of a business's potential. Our team takes time to listen and consider the context behind the numbers.

If there are any notable circumstances or additional pieces of information that you believe should be considered alongside your credit history, have them ready to present during the application review.

Step Three – Be Aware of Your Online Presence

When reviewing your application, capital providers will comprehensively assess your business's overall status, including a check on your online presence. Review how your brand appears online and update as needed.

Your online presence provides valuable context about your business and its operations. Our team at Libertas takes the time to understand the full picture of who you are as a business owner, which helps build a relationship based on mutual understanding.

Important questions to guide this process could include:

• Is all publicly available information about my brand up to date?
• Have any updates to my branding not migrated online?
• Does my social media activity portray the image I want capital providers to see?

Step Four – Prepare Contextual Business Information

To gain a complete understanding of your business, some capital providers will follow up on application requests with additional questions specific to your circumstances. Prepare answers to potential questions about your current business plan, the intended use of funds, and any important contextual information that gives the whole picture of your business.

Our advisors at Libertas believe in taking the time to truly understand your business goals and challenges. By listening carefully to your needs, we can better assist in finding the right funding solution that aligns with your specific situation and objectives.

Step Five – Do Your Due Diligence in Research

Once you've gone through all the previous steps in preparing your business, it's time to consider your funding options. Position yourself for success by researching the different types of capital solutions available to small businesses and eliminating options that aren't the right fit for you.

Working diligently to understand the full scope of options that might benefit our clients is a priority for our funding specialists at Libertas. We believe that finding the right match between business needs and funding solutions is critical to long-term success.

Important points to consider could include:

• Will I be able to get the total amount of funding I need in one transaction?
• Do I meet the established criteria to work with this capital provider?
• Is this type of funding optimal for my business goals?

By preparing your business ahead of time, you’ll be in a stronger position to secure funding that aligns with your goals. Taking these essential steps can streamline the process and ensure you’re ready to make informed decisions with confidence.

At Libertas, we’re committed to supporting business owners with clarity and care throughout the funding journey—so when the time comes, you’ll be prepared to move forward with purpose. Let’s talk about what’s next for your business—our team at Libertas is here when you’re ready.

This article is an educational resource from Libertas, designed to help business owners navigate the funding landscape with confidence.