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Volume 6, Issue 5 August, 2016
August 17, 2016

Here is your latest issue of BM$ Success Newsletter – the companion newsletter to the "Business-Money-Source" website.

5 Reasons Commercial Loans And Large Project Loans Are Not Funded (Part 2 of 5)

Reason No. 2: Weak Financial Statement and Lack of Sufficient Collateral to Secure the Loan

Let’s begin Part 2 with a small but poignant dose of reality: No lender or investor is going to fund your business or project without knowing that their money is secured by collateral that is equal to or preferably exceeds the value of the loan.

This seems like stating the obvious, but it is surprising how many loan seekers will approach a funding consultant such as Business Money Source and request a business loan of $100,000 or more with nothing to offer as collateral to secure the loan! A more extreme example is to have someone request $5 million or more to fund a project and their net worth is a few thousand dollars! Neither of the loan requests described here would be funded.

Loan Seekers Must Learn to See Their loan Proposal From The Lenders Perspective

Private lenders and investors do not fund projects because they are nice people, though some are, or because they particularly care about you, the loan seeker. Lenders and investors make loans to receive a return on investment (ROI). That means that the funding source expects to get their money back plus a profit, the ROI. The ROI may be in the form of interest or an ownership share of your business or a combination of the two.

What is Net Worth?

It is your responsibility as the loan applicant to convince and prove to the lender that the loan will be repaid as agreed upon. Your business Financial Statement provides the information that the funding source uses to determine your ability to carry the debt service.

Your business Financial Statement shows a list of your assets (valuable property that you own) and a list of your liabilities (debts that you or your business owe). You net worth is calculated by subtracting the total amount of liabilities from the total amount of assets. The funding source will look very critically at both your personal net worth and business net worth. Generally, the higher your net worth the larger amount of financing that your business may qualify for. Other information in your financial statement will be addressed in future issues. Suffice it to say for now, that your business financial statement should demonstrate to the funding source that you are financially responsible and able to repay the loan if the business or project fails.

One word of caution: When preparing the Financial Statement be as accurate as possible. In fact, there can be legal complications if you knowingly submit false information to a lender for the purpose of securing funding. The lender will learn the truth about your financial strength of your business when due diligence is performed on your loan proposal. So it is best to be open and forthcoming at the beginning of your loan application.

Learn More About Financial Statements & Collateral To Secure Loans

Click on the link below and fill out the contact us form, ask for the free report “Six Common Mistakes People Make When Applying For Business Loans”.


The Next issue of BM$ Success Newsletter will cover No. 3 of the Top 5 reasons large project loans are not funded.

This Month’s Business Survival Tip

New Exciting Lending Programs!

Business Money Source is always looking for new and exciting lending programs to help your business thrive and grow. The are three programs that will be made available to you soon.

Loans for Professionals:

This is a new probably that Business Money Source is working out the details. If you are an architect, doctor, dentist, engineer, lawyer or other professional operating a practice, the loan is specifically designed to help you build your business.

Working Capital Loans:

This is not new. Business Money Source offers several programs to obtain working capital for existing U.S. businesses. However, there are some new features that may help some businesses that have not been able to get funding now.

Farm Loans:

Farms have had a history since the Great Depression of having difficulty obtaining much need financing. This situation has changed over recent years as many farms have become profitable. This makes lending to farms for land, equipment and planting, etc attractive to one of our funding sources

These new programs will be covered in greater detail in future issues of BM$ Success Newsletter. In the meantime if you would like more information about either of these programs, please go to and fill out the “Contact Us” form and let us know how Business Money can assist in funding your business.

Let us know what topics you would like to see covered in BM$ Success Newsletter.

Friends of Business Money Source offer you additional resources to enhance your business and your lifestyle. Please see classifieds below:

Please feel free to contact me by the methods listed below, with any questions that you may have about the various loan programs offered by Business Money Source, LLC.

I look forward to assisting you or your clients in acquiring the business financing that you seeking.


Jim Bullock, Managing Member

Business Money Source, LLC

(804) 396-3040

Fax: (804) 781-4971

Twitter: bizmoneysource

Friends of Business Money Source

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Let us know what topics you would like to see covered in BM$ Success Newsletter.

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You as a subscriber are invited to give your business free online exposure. Free advertising just for the asking! Just send a brief description of your business and the products or service you offer. State whether you are local to a specific region or a national or international company. We will place your info in the next issue of BM$ Success. Don’t forget your contact info or to spell check your ad!

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Be sure to check business money news page daily on for updates. Also friend us on Facebook and follow us on Twitter!

Until next month!


Jim Bullock

Business Money Source, LLC P.O. Box 16096 Richmond, VA 23222

(804) 396-3040

“Your One Stop Online Business Information Source”

Twitter: @bizmoneysource

Disclaimer: The content contained in the BM$ Success Newsletter is provided for informational purposes only. It is incumbent upon the user of the information to seek appropriate financial and/or legal counsel before entering into any financial transaction. Business-Money-Source, LLC nor its' principals are in no way liable for your financial transactions. See the “Disclaimer” and "Terms of Use and Privacy Policy" pages on the Business Money Source website for further explanation.

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