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Let’s do business - where is the money?

One of our clients wanted to bring a new product into the market and needed some funds for advertising and marketing budget. When she approached her bank she got a negative answer, mainly because she was not prepared, didn’t know what to ask and could not offer any type of guarantee to repay back her funds. With proper analysis, we created together with her a strong view of her marketing plan, presented her growth of activity with a new bank, which was interested to have her as a client and negotiated with them to reduce their demand for guarantees and interests. Banks will always present your high demands, which usually can be reduced and negotiated.


Funding through private investors & angels  

We can approach this idea in 2 ways – private investors you don’t know (these are called - angels) and investors, which are in your close circle, network, family and friends. I invite you to test the concept and check how many businesses you know started with the support of family, friends and other private investors. You will be surprised to know that many of them started like that. It is natural that your close circle will be less concerned about risk, but angels and private investors which are not “friends” will usually demand a high level of involvement and to be partners in your company.

Finding an angel is a combination of hard work, dedicated efforts, and also…luck!

Angels can be located by a direct approach (in events, email, LinkedIn and networking meetings) or via an introduction of a third party, which usually intermediates (on commission-based fee). Another way to recruit investors is to allocate companies with high interest in your services and products. Sometimes large clients can prefer to become your partners, it can reduce the costs for them and creates a better flow in their business. The risk is based on the actual fact that you need to expose them to the reason you need an investment...which is a bit tricky, therefore recommended to be done carefully or by a third party. About the “luck factor” - keep in mind lucky people are the ones who are trying.

Allocating funding from Private equity funds
In the last few years, it has become the “secret wish” of many entrepreneurs to aim at being bought by a fund and become millionaires overnight. I must admit this is a great fantasy. In many cases, it is also an achievable one, for several types of business. In this respect it is good to know the private funds usually invest in existing businesses, with proven cash flow, proven clients, having a need in funds to grow or take control over a certain aspect in their market. Funds will always become shareholders (minority or majority depending on the leverage of investment) and usually demand to be involved in the daily aspect of the business. The practical meaning is that the business is no longer yours. For many entrepreneurs, it can fit, mainly if they also wish to reduce their part and proceed to new initiatives.

Getting public funds - EU funds / development banks/ grants
In Romania, there are several options to receive loans or grants (loans which you don’t return) from EU funds or via development banks such as EBRD. On the paper loans and grants are very appealing, sometimes guarantees are not requested. The challenges in achieving the loans are known – the amounts are limited, the paperwork is demanding, the process is very long and involves prolonged bureaucracy.

In most of the cases the loans are given retroactively, meaning you need to first make the investment under the fund confirmation, and then you receive it back in steps. The meaning of this is that a bank or personal funds must back you up during the process.


And the Surprise ….your suppliers!

A large factory owner wanted to purchase new equipment for her food factory. She has checked all types of loans and leasing, until we offered her to discuss with her supplier, a foreign equipment producer company. Together with the supplier, we created a better loan, which didn’t interrupt with her cash flow or other credit lines. We assisted lost the supplier by creating a better loan structure for her via her bank. The supplier, being a large international company, has more options in providing supplier credit for his clients.
So where is the money? The answer is short - it is there, waiting for good investments and it is usually based on the combination of all the channels. The way to achieve financing is not easy and full with challenges, but it is a possible one.

Join “The Money Academy “workshops as a part of BWFR- Business women forum - Romania, in collaboration with Mentor finance and Business Women Magazine. Click here for more details

Mentor finance is welcoming your business -
If you wish to ask questions about financing - you can send us the question to email –



Osnat Peled, General Director of Mentor Finance (from Mentor group Holdings consortium) has relocated to Romania from Israel. Having 19 years of business experience she has been working with banks, governments and leading companies in assisting them to achieve their business goals and recruit financing.
Mentor Finance provides financing solutions to companies, developers, entrepreneurs and NGOs in all types of domains.



Foto: Sebastian Moise  Make-up: Monica Panait    Şedinta foto a avut loc la Hotel Prince Park Residences Bucureşti   *Articol apărut în Business Woman Magazine, ediţia 63

You might be interested to read the following articles -

If I had a dollar for every time I hear the question – “How can I recruit money for my business, and fast? “.
I wish I could provide you (and also me) the magic stick, one that creates shortcuts and opens all the doors. The reality is indeed complex, but the good news is that the money is actually there, seeking for good hands, good yields, and good ideas
There are many ways to recruit funds, you can choose using one source or several of them (it is called syndication). The most popular sources are banks, private investors, equity funds and public funds. I have left another surprising option for the end of this article.

By Osnat Peled, Mentor for Business Excellence and
Director of Mentor Finance.

Getting loans from your bank


Banks provide long, short or medium loans to any type of business, organization or a private person. The banks in Romania have developed a very professional and welcoming approach. They provide a large scale of products under the financing domain – loans for SME, investment loans, equipment loans, leasing, project financing, real estate financing and more. It is interesting to note, that in most of cases, even experienced business managers and CFOs do not know about the variety of solutions the banks can offer and sometimes they choose a wrong solution to their investment needs.


This is because banks, in general, do not tend to “voluntarily” provide information, you must ask for the info you need. Banks are considered to be in the position of “no risk-takers” - that means they will request guarantees for each loan they provide

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