8 Ways Lacking Capital Holds You Back

I can’t get working capital because I can’t get a loan, and I can’t get a loan because I don’t have collateral! How many times have I heard that complaint? Too many! But it’s a more common complaint among business owners than you might think. The question of how to get working capital is often a problem of perspective.

Without adequate capital, your business cannot:

  1. Capitalize on your idea before the competition copies and runs with it
  2. Capture the moment in the market when your opening occurs
  3. Feel out that moment and get a proper understanding of the need
  4. Know when or how to move next, because you don’t have funding
  5. Expand operations for your business capacity
  6. Take on that next level of retailer/provider for your product or service
  7. Advertise to capture brand awareness
  8. Nurture leads for your business online via any digital channel

R. Randy Veillon


I’ve been working in the finance industry for over 40 years. You know what I discovered in that time span? Businesses fail not for lack of good ideas, but simply for lack of proper funding. That’s right. I said it: capital is more important than ideas. The proof is in how easily some seemingly goofy ideas go big.

Pet rocks? Funded. The Hula Hoop? Funded. “Sea Monkeys”? Very well funded. My point is that “dumb” stuff wins all the time because the funding was there to MAKE it happen when market conditions were right.

I know. I really do. Your idea is probably not dumb or frivolous like the examples I’ve just used (though they were great fun for a great many kids back in the day). In fact, I’m willing to bet that you are among the more conscientious and hardworking business owners in your industry and niche who feel that your product or service is an essential addition to your niche. Perhaps your product or service actually improves businesses, or even individual people’s lives. But are you well capitalized for growth?

Okay, so how does getting capital work?

Well, let’s start off with how it doesn’t work…


  • It doesn’t factor in your genius as an entrepreneur, unlike crowdsourcing (which is great, if your idea is really sexy to the masses).
  • It doesn’t have to do with who you know (unless you know a business who has agreed in writing to buy your product in bulk, just as soon as you figure out how to produce it).
  • A bank doesn’t care if you’ve done it before if you don’t have collateral.
  • A bank won’t care if your product is an innovation unless you have market research to prove there is a ready market for your widget.
  • Your parents don’t matter (unless they’re underwriting your loan with their home or business or other assets).
  • Bad credit will stop you (if you’ve got no collateral to bargain with).
  • It won’t help to appeal to mercy (never try that, by the way…).

If you’ve come to this point of your original concern (how to get working capital) with the realization that you need expensive land or equipment or building space as collateral to qualify for a loan at most banks, then you may next ask:

How do I get working capital without collateral?

Unpaid Invoices

  • Look at the equity you have as a business that is currently “inaccessible”.
  • Your building, equipment, even your house, can be collateral…but should you?
  • Think of how people pay you. How can that income be accessed…faster?
  • Collateral may be there where you aren’t looking. Is your business busy?
  • Invoices are a fast way to expand working capital, and guess what: they are collateral!
  • The safest, easiest way to finance operations is by liquidating short-term equity – factoring invoices into a revolving credit or even cash.


Discover how to turn your unpaid invoices into working capital now.


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25 thoughts on “8 Ways Lacking Capital Holds You Back

  1. What an insightful piece! You nailed it. This actually got me thinking how businesses fail amidst the lofty ideas and even good start. Indeed, ideas matters less, what matters most is the capital! Thanks for the tips. I hope to learn more.

    1. Thanks, Kevin! I hope I can live up to that expectation! And I don’t doubt the impact of a good idea, but it is true that capital is what enables the idea to unfold! That’s true everywhere, including here in Baton Rouge!

  2. Well said Randy. If I were to be honest with myself, I’d have to admit that I know literally nothing about funding, and have little precious understanding of how to truly grow a business. Thanks for the education on the working capital of business development!

    1. Thanks for your candor, Mitchell! Though I only provide mainly a finance side of the matter, of course branding and developing constructive relationships with clients are always a pre-foundation!

  3. Interesting read! Adequate funding seems to be the key to every successful business. I always had the preference for market research as compared to the development of new ideas without a strong financial base.

  4. Thanks for this information, I actually thought I could convince the bank based on the level of experience I have attained without much work on market research.

  5. This is really interesting! Inadequate access to working capital and other financing options is a huge contributor to a business’s lack of success and ultimate failure. Yes, ideas are quite important but working capital is the key to implementing these ideas without which nothing works outs. I’m really interested on getting to know more about accessing working capital without collateral. Thanks!

  6. It is actually not very easy for creative entrepreneurs who want to introduce something new to a market. Banks are more interested in the profit than the actualization of a dream.

    1. Of course! Capital is only interested in itself! Nature of the game, I’m afraid. I try to keep it as human as possible as a business loan broker. I’m often the only existing advocate for the borrower’s interests and strengths when rubber meets road.

  7. That has always been my question – “How do I get working capital without collateral?” Thanks for the tips, I’ll really love to get more insights on this aspect.

  8. Collateral is a major stumbling block for small businesses. If there are effective ways to get working capital without collateral that would be great. I’m keen to learn. Thanks for the educative piece.

  9. I agree with you. Lack of working capital presents many disadvantages to small businesses. Ideas are important but working capital is what every business needs to grow.

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