There is no single thing funders want, because funders are not one group. A grant programme, a development finance institution, a bank and an equity investor are assessing different risks and want different outcomes. Approaching the wrong one with a good business is the most common way a fundable company gets declined.
Work out which category you are approaching, then answer the four questions all of them ask.
Match the funder to your stage
Grants suit early or survivalist businesses and come with defined eligibility, priority sectors and application windows. Banks lend against demonstrated repayment capacity and usually security. Development finance institutions sit between the two, lending where a bank will not, usually where jobs are created.
Equity investors buy a share of the business and need it to grow substantially, which suits very few small businesses and is wrong for most. Selling equity to fund working capital is an expensive mistake.
The four questions behind every application
Can this business repay or return what we put in. Is there evidence people actually buy this. Can the people running it execute. And is the entity compliant enough for us to lend to at all.
Everything in an application is answering one of those. Material that answers none of them, however well written, is padding.
Evidence beats projection
Orders, contracts, letters of intent, repeat customers and bank statements are worth more than any forecast, because they are verifiable.
Where you must project, build from realistic costs and show what happens if sales come in below plan. Optimistic numbers read as inexperience, not ambition.
Compliance is assessed first
Registration and current annual returns with the Companies and Intellectual Property Commission, tax compliance, and a bank account in the business name. These are checked before the business is considered.
Free help getting an application to standard is available through the Small Enterprise Development and Finance Agency, and using it costs nothing.
Frequently asked questions
What do all funders want to know?
Whether you can repay or return the money, whether people actually buy, whether you can execute, and whether the entity is compliant.
How do I choose which funder to approach?
By stage and purpose. Grants suit early businesses, banks want repayment capacity, development finance sits between, and equity suits very few.
Should I raise equity for working capital?
Generally no. Selling a permanent share of the business to fund a temporary need is an expensive way to solve it.
What is worth more than a forecast?
Orders, contracts, letters of intent and bank statements, because they can be verified.
What is checked first?
Compliance. Registration, annual returns and tax status are verified before the business itself is assessed.
Further reading
Originally published in August 2018. Updated September 2026 to set out how funder types differ and what each is actually assessing.
