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Small Business Guide Jan 12, 2023

The Funding Fundamentals

In this series of small business guides, we’ll explore some fundamental ideas behind business financing and guide you on making the most out of your funding.

The Funding Fundamentals I – 5 Steps to Prepare for the Financing Process

Every business runs differently, but funding is critical to any growth strategy for many businesses. No matter the industry, business owners can relate to the universal experience of searching for funding to drive growth and attain success. But with so many financing options available and a complex process to find the right fit, many small business owners are hesitant to take the first step toward funding their future. Thankfully, Libertas is here to help. In this series of small business guides, we’ll explore some fundamental ideas behind business financing and guide you on making the most of your funding. To begin, we’ll cover essential steps to take in preparation for the financing process.

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 financier when asked.

When working with high-tech lenders like Libertas, you’ll be asked to connect directly to your bank to transfer documents securely. To do so, you will simply need to securely log into your bank or accounting system, much like you would with an online payments platform. Establishing a secure connection with your bank ensures seamless access to documents and removes unnecessary friction from the financing process.

Step Two – Review Your Credit History

When applying for business financing, you’ll be asked to provide your personal and business credit scores for the financier to assess if you meet their minimum requirements. Before beginning the process, ensure you’ve reviewed both credit scores and unlock/unfreeze any accounts. 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 to the financier during the application review.

Step Three – Be Aware of Your Online Presence

When reviewing your application, financiers will comprehensively assess your business’ overall status, including a check on your online presence. Be sure to consider the brand image that your business is projecting online and consider making changes as needed. 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 financiers to see?
Step Four – Prepare Contextual Business Information

To gain a complete understanding of your business, some financiers 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.

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 financing options. Position yourself for success by researching the different types of financing solutions available to small businesses and eliminating options that aren’t the right fit for you. 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 financier?
  • Is this type of funding optimal for my business goals?


Following these simple steps will ensure that your financing process goes as seamlessly as possible and gets you connected to capital faster!

Find the Right Funding with Libertas

Libertas helps small businesses thrive by providing them with personalized funding solutions that drive growth and support success. Browse our client Success Stories to see how we’ve empowered businesses like yours to make the most of their funding and achieve more.