Why Most People Are Never Able To Raise Sufficient Money !

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Why most people are never able to raise sufficient Money ! Jan 14, 2012
I have seen so many posts on many forums including this one.

It amazes me that so many people are keen to do business, however they seem to think only in
one direction. Most people think someone rich will be excited by their project and drop money.

This is the biggest misconception of borrowers. They want what they cannot have and most projects are on paper
only.

If you care to think from the point of the lender, perhaps you will be better able to raise funds the right way.

1. Lenders want a project which is realistic with realistic returns. It is very common for all project owners to think that their projects are cash cows and the best return for lenders.

2. Poor team and non existent experience within the company promoters. All lenders want to see a strong set of professionals who can execute the projects and return back the lenders money. Most lenders are not concerned with collateral, they prefer getting back their money.

3. No equity of the client in their own project. Most project owners are looking for a 100% funding, so basically they do not want to take any risk and risk 100% of the clients funds for their projects. 10-20% of clients own fund invested in the project gives the lender confidence that the client is serious about executing the project.


There are many other reasons, too long to mention here. However, if you are serious about raising funds for your projects, you should seriously think hard about how you go about raising funds.

UAE is perhaps one of the most liberal places to raise money for business and grow rich, however it is surprising that many are not aware of how to go about this.

cashflowprofit
UAE, Dubai Forum starter
Posts: 1
Location: Mumbai

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Re: Why Most People Are Never Able To Raise Sufficient Money Jan 15, 2012
Welcome to DF.. Yes indeed also youll find king sharks and fools here in Dubai...
Mindnu
Dubai Forums Frequenter
Posts: 114

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Re: Why Most People Are Never Able To Raise Sufficient Money Feb 06, 2012
Making a presentation to persuade a potential investor is not easy. With the reasons mentioned above. As a freelancer like me, it is like presenting a quote to a potential client and get it accepted. You need to know the basic guidelines on how to persuade and present a project to get it accepted. I read this article which I think could help guide ourselves in presenting, may it be for a fund or to win a project.
Elissa1984
Dubai Expat Wannabe
Posts: 5
Location: dubai

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Re: Why Most People Are Never Able To Raise Sufficient Money May 25, 2012
Very well explained thanks for sharing. Its very true that the people who invests in project will expect the return of money in less period as much as it can. Professional will never fail to do this because they also in turn to earn from that project so they will execute in such a manner that they also can earn from that project and rest money are returned to lenders.
Brynnae
Dubai Forums Enthusiast
Posts: 95
Location: Los Angeles

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Re: Why Most People Are Never Able To Raise Sufficient Money Jun 06, 2012
What are the hot industries for small businesses in Dubai?
duswap
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Location: Dubai

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