How to Secure Funding in Challenging Times
As the economy struggles, so too are many businesses across the country. Prices are going through the roof and it’s tougher to access funding. Michael Fingland, CEO of Vantage Performance, says if you’re looking for a loan you need to stand out from the crowd. To do that, you need to develop and strategic plan and show the bank that you understand your cashflow and balance sheet.
When capital is abundant, funding is a transaction.
When capital tightens, funding becomes a test.
In today’s environment, characterised by rising costs, economic uncertainty, and tighter lending conditions, accessing finance is no longer straightforward. Lenders are more selective, risk tolerance is lower, and competition for capital has intensified.
According to Michael Fingland, CEO of Vantage Performance, businesses seeking funding must do more than apply, they must differentiate.
The Shift: From Availability to Selectivity
In buoyant markets, lenders focus on growth potential.
In constrained markets, they focus on risk.
This shift changes the criteria for funding:
Greater scrutiny on cash flow
Increased emphasis on balance sheet strength
Higher expectations around planning and governance
Businesses that fail to adapt to this shift often struggle to secure finance, regardless of their underlying potential.
Standing Out in a Crowded Field
Fingland’s core insight is simple: if you want funding, you need to stand out.
This is not about storytelling, it’s about credibility.
Lenders are asking:
Do you understand your business at a granular level?
Can you demonstrate control over your financial position?
Do you have a clear, executable plan?
The businesses that can answer “yes” to these questions move to the front of the queue.
The Foundation: A Credible Strategic Plan
A funding request without a plan is a red flag.
A strong strategic plan should clearly articulate:
The current position of the business
The challenges being faced
The actions being taken to address them
The expected outcomes over time
Critically, the plan must be grounded in reality, not optimism.
Lenders are not looking for perfect projections, they are looking for well-reasoned assumptions and a clear path forward.
Mastering Cash Flow: The Non-Negotiable
If there is one area lenders focus on above all else, it is cash flow.
Fingland emphasises that businesses must demonstrate:
Clear visibility of current cash position
Detailed cash flow forecasts
Understanding of key drivers (inflows and outflows)
This includes:
Timing of receivables and payables
Working capital requirements
Sensitivity to changes in revenue or costs
A business that understands its cash flow signals control.
A business that doesn’t signals risk.
Balance Sheet Strength: More Than a Snapshot
The balance sheet tells a deeper story.
Lenders assess:
Asset quality and liquidity
Debt levels and structure
Equity position
But beyond the numbers, they are looking for:
Stability
Sustainability
Capacity to absorb shocks
This is where many businesses fall short, they focus on profit, but fail to demonstrate balance sheet resilience.
Anticipating Lender Concerns
Strong funding applications don’t just present a case, they address objections before they arise.
This means proactively answering:
What happens if conditions worsen?
Where are the pressure points?
What contingency plans are in place?
Scenario planning becomes a powerful tool here.
It shows that the business is not only prepared for success, but also for downside risk.
The Role of Confidence and Communication
Funding decisions are not purely quantitative.
They are also based on confidence in management.
Clear, structured communication:
Builds trust
Demonstrates competence
Reduces perceived risk
Leaders who can articulate their strategy, financial position, and risk management approach effectively have a significant advantage.
Early Engagement Changes Outcomes
One of the most common mistakes businesses make is waiting too long to engage with lenders.
By the time funding becomes urgent, options are limited.
Early engagement:
Builds relationships
Allows time to refine the funding narrative
Increases flexibility in structuring solutions
In tight markets, timing is as important as quality.
Funding as a Byproduct of Discipline
Ultimately, access to funding is not just about the application, it’s about how the business is run.
Businesses that consistently:
Maintain financial visibility
Operate with discipline
Plan strategically
…naturally become more fundable.
Vantage Performance Key Focus Points
Tight economic conditions shift lending from availability to selectivity
Businesses must differentiate through credibility, not optimism
A robust strategic plan is essential to securing funding
Cash flow visibility and forecasting are critical
Balance sheet strength underpins lender confidence
Addressing risks and scenarios proactively improves outcomes
Early engagement with lenders expands funding options
