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.