Most funding applications fail because they were made before the founder could answer the basic questions a funder asks. Working through them honestly does two things: it tells you whether you are ready, and it tells you which kind of funder to approach, which is the decision that most often goes wrong.
If you cannot answer these without looking anything up, you are not ready to apply.
How much, exactly, and for what?
A specific amount tied to specific purchases with quotations, not a round sum. A funder needs to assess what the money buys, and a general description of need cannot be assessed.
Then: how does what it buys produce the revenue that repays it? That link is the application. Without it you are asking someone to fund a hope.
Can the business actually repay it?
What are your monthly fixed costs, your margin, and what the repayment would be as a share of what you generate? If the answer is uncomfortable at your current revenue, borrowing makes the position worse rather than better.
Debt funds growth or timing. It does not fix a business that loses money on every sale, and taking it for that reason accelerates the problem.
Who buys, and how do you know?
Orders, contracts, letters of intent, repeat customers and bank statements are worth more than any projection, because they are verifiable. A market size estimate is not evidence that anyone buys from you.
If you have no sales yet, say so and explain what you did to test demand. Overstating traction is found out during due diligence and ends the application.
Is the entity ready to be funded?
Registration with current annual returns at the Companies and Intellectual Property Commission, tax compliance, a bank account in the business name, and financial records. These are checked before anyone reads your plan.
Finally, which funder fits? Grants suit early businesses and run in windows, banks want repayment capacity, development finance sits between, and equity suits very few. Free help preparing an application is available through the Small Enterprise Development and Finance Agency.
Frequently asked questions
What should I establish before applying?
The exact amount and what it buys, whether the business can repay it, evidence that people buy, and whether the entity is compliant.
Why is a specific amount better than a range?
Because a funder must assess what the money buys. Quotations for specific purchases make that possible; a round sum does not.
Can funding fix a business losing money?
No. Debt funds growth or timing. Borrowing into a loss-making model accelerates the problem.
What counts as evidence of demand?
Orders, contracts, letters of intent, repeat customers and bank statements. Market size estimates are not evidence.
What if I have no sales yet?
Say so and explain how you tested demand. Overstating traction is discovered during due diligence.
Further reading
Originally published in February 2018. Updated September 2026 into the questions a funder will ask and how to answer them before applying.
