Well Charles, if you really think about it, would you lend money without knowing all of the details? Not likely. The best lenders or venture types can often help you with you business growth as well. They are your team not adversaries. Also, you must undestand that the due diligence that they must do is to help determine any past activitivities that they could be held responsible for.
You can. Depending on the amount you were looking for, we have unsecured funding with no tax, banking, or income documentation required.
I don't believe you can, Charles. Usually the way we deal with the confidentiality issue is by using a nondisclosure agreement.
Charles - I believe anything is possible - but you may have put a fold in my theory. Don't want to present financial info? Go to family / friends and get money. It is unlikely they will ask you for your history. Look into your business to see if there are assets that you can leverage OR recalibrate your business for a few months to save cash flow (e.g. minimize staff, etc.). Otherwise, you have a wise team of advisors before me in this string, they are very right. Pony up the P&L.
Well, let's see, you want "me" to give you money to run your business based on you're unaudited presentation of the details of how things are going. Hmmm, you better be able to put on a darn good dog and pony show.
You need to put yourself in the lenders place. If it was your money that you were lending would you provide it without proper and verifyable information. Lenders want to see PFS, tax returns and details of the collateral, Your only other option is to mortgage a RE property or other bankable collateral.
It is a difficult situation. Given the current economy and the tightness of funding, my experience is that investors and lenders want more and more information and more and more details. One approach that could work is to give a current year's financial data and then some strong projections and description. I would get a non-disclosure agreement in place as well to protect yourself. Again, some investors do not like signing NDA's, but good protection.
You really do not have much choice if you want to get funding (investors will need that information) but to give yourself a bit of protection you can always ask the potential investor to sign an NDA before they get access to that information. I understand your concern but assuming you are dealing with reputable investors you should be fine.
I got funding a few years ago but had to disclose everything. Difficult to get serious investments without opening the books...
There are various levels of disclosure which would be required depending on the stage of discussion ....
At the initial stage you'll have to disclose the broad framework of your business, your business differentiators and value proposition and certainly your last audited financials in summary form.
If that arouses interest, you may be able to insist on an NDA under which you would make further disclosures.
After that, once you've negotiated a Term Sheet which is signed-off, there would be a Due Diligence - where there is nothing you can hold back ...
Hope this helps ....