Raising Finance: DIY or Professional?

Introduction

Let's say you just secured financing for your company. The contract is signed, money is in the account. Looks like a win, right?

I'll be honest – not always. Often a received loan simply means you took the first available offer without knowing what your real options were.

The biggest mistake I see daily is when an entrepreneur (whose main job is growing the business) decides to become a financing expert. Financing isn't just "an application to a bank" – it's a separate game with its own rules.

Here are three situations from our practice.

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1. "Burned bridges" – the wrong strategy

A real estate developer asked for our help but didn't mention they had already approached several banks on their own. When we developed a strategy and approached financiers, the banks already saw this client as "burned out" and problematic.

Result: Lost time. Destroyed trust. Financing was not secured.

> Going to banks without a strategy doesn't get you a rejection – it burns a bridge.

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2. The illusion of a bank's "Yes"

A client goes to the bank alone. A young, enthusiastic manager promises: *"Yes, we'll give you the money!"* The entrepreneur starts ordering equipment, signing contracts. But reality – the credit committee rejects the application because the bank has already reached internal limits in that sector.

Our result: The client came to us with a rejection, and we secured €90,000 from a more suitable financier within 1 week.

> A bank manager's "yes" is not the bank's "yes." The credit committee decides.

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3. Time is against you

An entrepreneur needs money urgently – deadline is 1 month. If they went the traditional bank route, the process would simply collapse.

Our result: We created competition in the non-bank sector, quickly structured the deal, and funds were secured on time. Result: €245,000 from a non-bank lender, with subsequent bank refinancing and additional working capital – total €500,000.

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What does the "I'll do it myself" approach really cost?

Lost money

Without competition between lenders, you don't attract the maximum amount or overpay on interest.

⏰ Lost time

On average, raising finance can take up to 5 months. If your time as a CEO costs €10,000/month – this experiment just cost you €50,000.

Missed opportunities

Most entrepreneurs don't even consider tools like factoring, alternative credit lines, or ALTUM programs.

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Conclusion

An entrepreneur should focus on growing their business. Raising capital is a structured process that requires market knowledge and proper communication.

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