If you’ve got an idea for a business, odds are pretty good that you’re going to need money to make your idea a reality. No matter what business you’re in, one way to get the capital you need is to find private money lenders.
Private money lenders are traditionally a non-institutional (so non-bank) company or private individual that loans money. Private money lenders are usually considered more relationship-based and typical hard money lenders and money is secured typically by a deed of trust.
Only 40% of U.S. business owners applied for a loan in 2017, a decrease from the previous year. So when it comes to securing funding for a business, private money lenders may be a better way to go for some folks. There are many private money lenders who are willing to invest and one of best ways to get their attention is with an effective presentation.
How can you pull off the perfect presentation of your opportunity? These tips will help you nail it and help present your idea in the best way possible:
- Meeting in-person: As technology continues to drive the way companies do business and the way we communicate, sometimes the best way to be effective is meeting a potential lender face-to-face. Meeting in-person allows you to establish a personal connection with a potential investor and allows them to form an (hopefully good) impression of you. Again, private money lending is usually more relationship-based, so making a good impression is crucial. Putting in some time for a face-to-face meeting shows a lender that you care, that you’re willing to do things right and you’re the right person to invest in.
- Charisma: If you’re passionate about your idea and what you want to do, let that passion shine through in your presentation. You don’t want to come off cocky, but you want your charisma to shine through and to show a lender that your opportunity is exciting and that you’re excited. If that passion comes out and a lender believes in what you’re doing, they might be encouraged to act immediately.
- Don’t seem desperate: To make a business idea come to fruition, you’re going to need money. Everyone knows that. But when you’re making a presentation to private money lenders, the last thing you want to do is come across as desperate. That can send the wrong message to lenders, giving them the impression your idea (or already-established business) isn’t doing all that well. If that’s the case, it’s really going to be a hard sell trying to get a lender to give you money.
- Read the room: Having a few negotiation tactics up your sleeve can help you during your presentation. Knowing how to read the room, mirror your potential lenders and talk the language they talk can ultimately help you close the deal.
- Numbers don’t lie: Having a great presentation is paramount, but ultimately a lender wants to see some hard numbers. How is your business doing? How much business can you expect to do? Let the numbers you have do all the talking for you. Having concrete numbers to back up all the points you’re making can help you encourage a lender that you’re worth the investment.
- Take time to listen: As you make your presentation, make sure you’re listening to a lender and answering any questions they have. Any businessperson worth their salt knows that doing good business means actively listening. A lender has taken the time to listen to you, so extend them the same courtesy.
By combining hard numbers with a the right amount of passion during a face-to-face meeting, you can successful show private money lenders that you and your company are worth investing in. They’ll see that your plan is more than just talk and that you’re set up for success, making them more willing to give you private loans.