Agoge Acquisitions

Agoge Acquisitions

Business Financing

Unlocking Business Funding: How to Make Your Company Bankable

THIS IS NOT LEGAL, FINANCIAL, OR ANY OTHER KIND OF ADVICE!! THIS IS SIMPLY SOME OF THE THINGS WE THINK THROUGH WHEN WE ARE LOOKING AT FUNDING.

This guide will take you through the complex process of getting capital. Accessing capital is one of the biggest challenges business owners face. Whether you’re looking to expand, acquire a business, or improve cash flow, knowing how to position your company for financing is essential.

Unfortunately, 69% of businesses fail to secure funding due to improper structuring. In this guide, we’ll break down the fundamentals of business financing and show you how to become "bankable" so lenders see your company as a worthwhile investment.

What Does “Bankable” Mean?

A "bankable" business is one that banks and lenders are willing to take a risk on. This means

  • Your business structure, financials, and creditworthiness meet lending requirements, showing that your company is stable and well-organized.

  • You can demonstrate profitability and financial responsibility by maintaining accurate records, managing cash flow effectively, and ensuring that expenses are kept in check.

  • Lenders trust your ability to repay borrowed funds, which can be achieved by showcasing consistent revenue streams, a solid repayment history, and strategic business planning.

  • Your business has a clear growth trajectory and a plan for sustainable expansion, which reassures lenders that their investment is safe.

  • Having a strong personal and business credit history further increases your chances of securing funding, as banks often look at both aspects when assessing risk.

  • You have diversified income sources or contracts that provide a steady revenue flow, making your business a lower-risk candidate for loans.

Steps to Become Bankable

Maintain Strong Financial Records: Lenders want to see consistent profitability and organized financials. Ensure your tax returns show profit, even if it means paying slightly more in taxes. Establishing financial discipline and keeping accurate records will enhance your company’s credibility with lenders.

Optimize Your Business Bank Statements: Lenders analyze deposits and spending habits. Avoid excessive overdrafts and maintain consistent cash flow. Keeping a steady balance and showing positive banking history signals financial stability.

Separate Business and Personal Finances

  • Open dedicated business accounts to streamline financial tracking.

  • Use business credit cards to establish credit history and prevent personal financial liability from interfering with your business.

  • Establish distinct accounting systems to ensure clear separation between business and personal expenses.

Ensure Proper Business Registration

Lenders require:

  • Articles of incorporation proving the legal structure of your business.

  • Operating agreements outlining business ownership and operational responsibilities.

  • Business licenses confirming compliance with regulatory requirements.

  • Staying compliant with state and federal regulations strengthens your credibility when applying for loans.

Demonstrate the Ability to Repay Debt

Your Debt-to-Income Ratio (DTI) should be within lender guidelines, typically below 38%. Ensure you have a clear repayment strategy that lenders can trust.

Leverage Creative Financing Strategies

  • Seller financing to reduce out-of-pocket costs, enabling acquisitions with minimal initial capital.

  • Cash advance refinancing to restructure debt effectively and optimize repayment terms.

  • Using OPM (Other People’s Money) and OBM (Other Banks’ Money) to grow efficiently without over leveraging personal assets.

  • Exploring alternative lending sources, such as peer-to-peer lending or crowdfunding, to diversify funding options.

Types of Business Financing Available (rates will very depending on market economics and are shown as they currently sit 2025)

SBA 7(a) Loans

  • Best for business acquisitions or startups.

  • Offers up to 90% loan-to-value (LTV).

  • Requires two years of tax returns, 12 months of bank statements, and solid business financials.

  • Interest rates: 12% - 15% typically over a 10-year term.

  • Longer repayment periods and lower interest rates compared to many other business loan options.

Cash Advance Loans

  • Based on monthly deposits and profits.

  • Simple approval process: Requires three months of bank statements and at least one year in business.

  • Interest rates: 20% - 40% over 6 months to 3 years.

  • Faster access to capital, typically within a few days, making it useful for urgent business needs.

Equipment Financing

  • Covers a wide range of purchases, from vehicles to office furniture.

  • Loan-to-value ranges from 80% - 100%.

  • Interest rates: 8% - 18% over 2 to 6 years.

  • Allows businesses to purchase necessary equipment without large upfront costs, preserving cash flow.

Factoring Loans

  • Converts future revenue streams into upfront cash.

  • Lenders advance 80% - 95% of contract value.

  • Ideal for businesses with subscription models or recurring revenue.

  • Great option for companies with steady revenue but temporary cash flow constraints.

Business Credit Cards

  • Often offer 0% interest for 12 months.

  • Helps build business credit separate from personal credit.

  • Requires 720+ credit score for best rates.

  • Convenient for covering short-term expenses and earning rewards on business spending.

Lines of Credit

  • Secured (backed by assets) or unsecured(based on creditworthiness).

  • Interest rates: 3% - 6% per month.

  • Useful for inventory purchases, operational expenses, and short-term needs.

  • Flexibility to borrow as needed, making it a reliable source of working capital.

Real Estate Loans for Businesses

  • Used for purchasing commercial properties or investment real estate.

  • Loan terms vary based on property type and financing structure.

  • Allows businesses to invest in property, reducing long-term rental costs and increasing asset value.

Being bankable isn’t about luck—it’s about structuring your business properly, maintaining strong financial records, and using smart lending strategies. By following these guidelines, you can secure funding that fuels business growth and long-term success.

GET FAST ACCESS TO THE CAPITAL YOUR BUSINESS NEEDS

Our Funding Partner: Closer Capital

6 Months - 10 Year Terms

$10,000-$5 Million Funding

WHAT'S NEEDED TO QUALIFY

3+ Months In Business

You can qualify for their top financing options with as little as 3+ months in business.

$5K Monthly Gross Sales

The minimum revenue to qualify for financing options are $5K per month or $60K in annual gross sales.

No Minimum FICO

They have financing options for all credit profiles. There is no minimum FICO score required to apply.

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