Financial Planning

5 Financial Mistakes That Can Make SME Funding Difficult

These are patterns, not accusations. Many otherwise sound businesses present files that are harder to underwrite than the underlying operations deserve.

1. Funding plant from the cash-credit account

The limit looks used, liquidity disappears, and the next season has no room. Match long assets to term money.

2. GST, books and banking that do not agree

Lenders read all three. Unexplained gaps become the story of the file.

3. Informal cash that never finds the account

If the bank cannot see the business, it cannot easily fund the business.

4. Layering facilities without a map

Multiple loans, overlapping security, unclear priority — a refinance conversation starts with a clean picture of what already exists.

5. Asking for a number before stating a purpose

“We need two crore” is not a credit proposal. Purpose, cycle and repayment capacity are.

Avoiding these mistakes improves the quality of a discussion. It does not ensure a sanction.