October 16, 2023

Cash is queen in business – this we know! Cash is how our businesses survive – and being prepared with enough cash in our businesses is a critical piece in the sustainability of our organizations.

Entrepreneurs, when you’re looking for support from lenders and investors, it’s important that you head into your conversations with confidence … and confidence will come from knowing your numbers. Here are some things to consider if you’re looking to secure funds:

  1. Develop a solid plan: A business plan doesn’t need to be complicated! However, it’s important that you outline your business goals, strategies, market, and financial projections to demonstrate a clear vision to potential investors or lenders.
  2. Have accountant-prepared financial statements: Ensure that your financial statements, including income statements, balance sheets, and cash flow statements, are accurate, up-to-date, and easily accesible. Our experience is showing that lenders are looking for CPA-prepared statements (i.e. compiled, reviewed, or audited statements).
  3. Know what you need AND what you want: Determine the exact amount of funding required and be able to articulate how the funds will be utilized to achieve growth and profitability. Talk to your accountant and financial advisors to ensure you understand how much cash your business actually needs and what your targeted requirements are.
  4. Understand different financing options: Research various funding sources such as traditional bank loans, venture capital, angel investors, or alternative lending platforms, and choose the one that aligns with your business needs.
  5. Demonstrate profitability: Showcase a clear path to profitability and a sustainable business model to instill confidence in potential investors or lenders.

We recognize that heading into conversations with lenders and investors isn’t easy. Our goal at MOD is to help our clients have accurate and timely financial reporting that they understand. Having timely and accurate financial reports is a critical piece in building confidence in both business owners and lenders. Get financing and investing-ready by ensuring your financial reports are up to date and easy to understand! If you need help preparing and understanding your financial reporting, please reach out at hello@modaccounting.ca . Good luck!

Alicia Fowler