If your reason for not receiving support from your bank is that it's too small, funders might perceive this as an excuse rather than a valid reason. While smaller banks may have limitations, it's essential to convey how your project's potential aligns with their services. Furthermore, smaller banks often participate in loan syndication, where multiple banks collaborate to provide larger loans. They can also refer you to alternative funding sources or introduce you to potential investors.
Facing challenges due to a poor business relationship with a bank and a less-than-favorable business history can indeed make accessing funding difficult. However, it may not be impossible. A history of strained relations or poor credit can raise red flags for lenders, but showing substantial improvements in your business operations, financial management, and a solid plan for your new project could mitigate these concerns. While the road might be tough, exploring niche lenders, alternative financing methods like peer-to-peer lending, or seeking out investors who are more interested in your project's potential could be viable options.
If your bank doesn't support your plans due to a lack of collateral, there are possibilities to enable funding. While traditional collateral might be challenging to provide, banks often offer collateral-based loans, where clients with a solid credit history can borrow against assets like accounts receivable, inventory, or equipment. This could potentially provide the necessary collateral to secure funding at your own bank. It is vital to proactively address the reasons your own bank doesn't support your plans. By presenting a strong business case, demonstrating improvements, and exploring alternative financing avenues, you can enhance your chances of securing funding for your project.