Even if you're new, you can raise capital: you just need the right strategy.
Many entrepreneurs believe that without two years of track record they cannot access financing. The reality is that Yes, there are options.They just require a more solid structure and well-prepared documentation.
Here's a clear guide to increase your chances.
1. Organize your business legally
Banks do not lend to "informal" businesses. You must have:
- LLC or Corporation
- A (Employer Identification Number / Employer Identification Number,)
- Operating Agreement
- Bank account business
- Business address (avoid PO Box)
This demonstrates legitimacy and reduces risks to lenders.
2. Build your business credit
Before requesting capital, your company must demonstrate:
- Paid punctual
- Net-30 accounts / business lines of credit
- Initial lines of suppliers
- Reports from bureaus such as D&B, Experian Business, Equifax Business
A good foundation facilitates the approvals.
3. Prepare your financial documentation
Even if your business is new, a bank wants to see:
- Real income
- Bank statements 3–6 months
- Clear projections
- Contracts or invoices that support operations
Clarity financial inspires confidence.
4. Consider options outside of the big banks
Young companies tend to obtain capital more easily in:
- Digital lenders
- Secured lines of credit
- Business cards
- Micro-loans
- Community programs or grants
After, already with a history, you will be able to access larger products.
Do you want financing but don't know where to start?
Prostart helps you to structure your business so that it is bankable, even if it is less than two years old.