After supporting dozens of companies in their financing efforts, we have identified five recurring mistakes that sabotage the best projects. These mistakes are not gaps in competence — they are gaps in method.
Mistake #1: Going to the bank without a structured file
The first meeting with a banker is not a conversation. It's a presentation. If you turn up with ideas in your head and rough figures, you have already lost.
A structured file includes: a company overview, financial statements for the last 3 years, a business plan with projections, and a note detailing the purpose of the financing.
Mistake #2: Overestimating revenue, underestimating costs
Bankers have seen thousands of business plans. They spot unjustified optimistic assumptions immediately. Growth of 300% in two years with no credible explanation disqualifies you instantly.
Be conservative in your projections. Explain your assumptions. A well-argued realistic scenario is worth infinitely more than an ideal scenario with no basis.
Mistake #3: Neglecting repayment capacity
Your project may be brilliant. If your projected cash flow doesn't cover the repayment instalments, the loan will be refused — full stop.
Repayment capacity is calculated as gross operating surplus divided by debt service (principal plus interest). This ratio must be above 1.2 as a minimum at most institutions.
Mistake #4: Ignoring your credit history
A past unpaid debt, an unregularised overdrawn account, a dispute with a previous institution — all of this leaves traces in the risk-registry files. Banks consult them systematically.
Before requesting financing, take stock of your history. Regularise what can be regularised. If a difficult past situation is unavoidable, address it in your pitch and explain how you came through it.
Mistake #5: Knocking on a single door
Many entrepreneurs think a refusal means "a definitive no". In reality, each institution has its own criteria, its own preferred sectors, its own risk appetite.
A classic commercial bank, an investment fund, a development finance institution, a specialised MFI — these players do not have the same expectations. Multiply your approaches, adapting them to each counterpart.
What it changes in practice
Fixing these five mistakes does not guarantee financing. But it removes the most common reasons for refusal and positions you in the top 20% of files received by institutions.
That is precisely where Mboa Make comes in: not to promise financing, but to prepare you to deserve it.
