When a business owner is looking for new financing for their company they must first decide if it is a job for them to do personally or if they are better served using a financial consultant to help. Two questions always arise:
- What can a consultant do that you can not?
- What is the cost?
Let me try and address these questions.
First a consultant will allow you to spend your time continuing to run your business while the search for financing takes place. Business owners are always torn between doing the business and running the business. A good consultant can make that an easy decision.
Next, a consultant works with a large variety of companies having varied financing needs. To address these needs, the consultant has developed a list of key sources with proven track records. There may be workable alternatives that are unknown to the business owner.
Two big things are accomplished. You have more time to manage your company and you have help in evaluating alternative sources of money. And as to the second question. Most often the consultant takes its fee from the financing source and not from its client. In the rare exceptions to this arrangement, fees are negotiated up front and are only due at loan closing.