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Frequently Asked Questions
What is a Fundable Business?
A business is Fundable if a lender or credit issuer believes they are a good risk and are willing to give them money or credit or both. It is to effectively demonstrate to a credit provider or a lending institution that a business is set up properly and can pay back any loan or extended credit.
What Does Fundability Mean?
Credibility or legitimacy are fairly close to Fundability, meaning that a business doesn’t appear to be ‘fly by night’. But the Fundability definition goes beyond just looking and acting the part. It also encompasses the ability to pay back any extended credit or loans. The Fundable word meaning holds both concepts, which work together.
Businesses which are set up well will help to convince a lender or credit issuer to loan money or extend credit.
What are Fundable Businesses Like?
Fundable businesses have some details in common, regardless of industry.
A Fundable business pays attention to details. They take the time to make sure all their information is correct and uniform wherever it is. They research vital information, such as any licensing they must have and what the market is like for their goods or services.
They also practice financial responsibility, and pay back their debts on time. They keep their bank account in the black. And they work with professionals who can do the books and file taxes properly.
Another characteristic of Fundable businesses is that they plan ahead. If a Fundable business is seasonal, it puts away capital for the off-season, or it adds another good or service which is in demand during the off-season. They set up with the business credit bureaus and make sure transactions are reporting, since they know they may need to lean on business credit later. They have a vision and a business plan.
How Long Does it Take to Achieve Fundability?
You must work on Fundability throughout the life of the business. A lot of the work comes up front, with building your Fundability Foundation™. Yet keeping records consistent, maintaining good payment histories, and how your business applies for financing will need to be worked on again and again. Since laying the groundwork covers so many different Fundability factors, we recommend making it a priority.
What are Some Fundable Business Ideas?
There are Fundable business opportunities everywhere because virtually any type of business can become Fundable. Fundable projects can include any industry, although less risky industries can be seen as more Fundable. Incorporating is also vital—any sort of corporation will always do better than a sole proprietorship or a partnership, no matter how much the partnership or sole proprietorship is within a Fundable range.
What is a Fundable Business Plan?
A well thought-out and professionally prepared business plan will support what the business and its owners say about their ability to pay back extended credit or loans. It will showcase a Fundable business model where a company is put together legitimately, crossing all T’s and dotting all I’s.
How Do You Create and Maintain Business Fundability?
You can check on your business’s Fundability by comparing how your business is doing versus any of the above sections. If your business does not yet have a dedicated business bank account, for example, then it will be less Fundable than a business which does.