What to Prepare Before You Approach Investors or Lenders

Whether you are pitching to an angel investor, applying for a bank facility or seeking a grant, the people on the other side of the table will ask the same basic question: can this business use the money well and pay it back or grow its value?

Being prepared with the right documents shows you are serious and shortens the process considerably.

1. A clear business plan

Explain what the business does, the problem it solves, the market opportunity, your competitive advantage and how you make money. Keep it concise and evidence-based.

2. Historical financial statements

Most funders will want at least two to three years of financial statements, audited where applicable, plus recent management accounts.

3. A realistic financial model

Three- to five-year projections of revenue, costs, cash flow and funding needs, with clearly stated assumptions. Funders test assumptions carefully, so be ready to defend them.

4. Use of funds

Show exactly how much you need, what it will be spent on and what it will achieve.

5. Clean corporate and tax records

• Up-to-date company registration documents and annual returns
• Tax clearance certificates and evidence of filings
• Key contracts, licences and permits
• Details of existing loans and shareholders

6. A strong management story

Investors back people as much as ideas. Highlight the experience of your team and any advisers supporting you.

How we can help

Proshires Consulting prepares business plans, feasibility studies and financial models, and helps businesses get ready for due diligence. Book a conversation with our advisory team.

This article is for general information only and does not constitute professional advice. Please contact us for advice on your specific circumstances.