I get a lot of calls from founders who say they need capital. They're frustrated, sometimes desperate, and they all tell me the same thing: "We don't have access to capital."
Here's what I've learned after years of helping SaaS and defense tech founders: It's not about access to capital. There's plenty of capital in the world today. The real question is: Are you ready for capital?
This is what separates Ready Founders™ from everyone else. Ready Founders™ understand that being capital ready isn't something you figure out when you need money. It's something you prepare for long before you need it.
Because if you're not capital ready, all the access in the world won't help you.
Let me tell you about a client who called me screaming that he needed $150,000 immediately. His business was going to fail without it. The bank had to approve this loan right now.
I told him no.
Not because he couldn't get the money, but because he already had it. He had $180,000 in accounts receivable sitting out there for 180 days. All he had to do was collect the money that was already owed to him.
That's the cheapest money you could ever get—the money that's already yours.
Six months later, he called back. "You were right," he said. He'd collected his receivables, put someone in charge of AR management, and now his cash flow was strong. This time when he needed capital, it wasn't to cover cash flow problems. It was to grow his business and buy assets that would help him perform more work, faster.
Completely different reason. Much better position. Much better outcome.
Here's something that might surprise you: No matter what people say about business credit, you have to have good personal credit first. Period.
I don't care how great your business is. If your personal credit is a mess, you're not capital ready.
The time to start fixing your personal credit is today. Not when you need funding. Today.
Go check your credit report right now. There could be things wrong that are easy to fix. There could be errors you don't even know about. Make a plan. If you need help with debt, Dave Ramsey has a great structure for paying it off—the snowball method where you pay off the smallest debt first, then move to the next one.
But don't wait. Start today.
Ready Founders™ understand that capital comes in 31 flavors—maybe more. You need to mix and match them just like you would at Baskin-Robbins. You wouldn't get three scoops of chocolate ice cream, right?
Different types of capital serve different needs:
Short-term debt for customer financing Longer-term debt for assets or key team members Equipment loans for specific purchases Revenue-based funding for growth initiatives Friends and family loans for early stage needs Customer prepayments to fund projects
One client of mine had VC money (which is actually the most expensive capital in the world because they're taking your future). Think about it: when you take VC money, you're not just paying interest—you're giving away ownership and control of your company. That equity could be worth millions down the road. But this client was smart about it. He used the VC funds only for things that would directly increase revenue and profitability. Then he got equipment loans for office furniture and equipment.
The equipment loan was a little more expensive on paper than an SBA loan would have been. But he understood something important: you don't use your growth capital to buy furniture. Save the VC money for what's going to move the needle on revenue.
It's about putting the right puzzle pieces together to get the right mixture of capital for what you need.
Everyone talks about SBA loans like they're the holy grail. They're not.
Yes, SBA loan assistance can be a good option. But there are lots of costs people don't consider:
The IRS. The Treasury Department.
They have the right to come after everything you own. That's quite a risk most people don't even think about.
SBA loans are just one option. They're not automatically the best option.
Sometimes the most important question is whether you really need the capital at all.
That client I mentioned earlier? He thought he needed $150,000. He actually just needed to collect what was already his.
Before you go looking for capital, ask yourself:
When founders tell me they don't have access to capital, here's what I hear:
Who in their right mind is going to give you a prime loan when your business isn't prime?
The capital is out there. Crowdfunding, revenue-based loans, equipment financing, collaborative lending, industry funding—there are more options today than ever before.
But none of them matter if you're not ready.
Being a Ready Founder™ means preparing for capital needs before you have them. Here's where to start:
Ready Founders™ don't wait until they're desperate to think about capital. They prepare in advance. They understand that being capital ready isn't just about having good numbers—it's about having the right mindset and the right relationships.
They know that the best deals come to those who are prepared, not those who are desperate.
Most importantly, they understand that sometimes the best capital decision is deciding you don't need capital at all.
Take an honest look at your capital readiness today. Are your personal finances in order? Do you have clean, trustworthy business financials? Have you collected all the money owed to you?
If not, start there. The capital will be there when you're ready for it.
But first, you have to be ready for capital.
Ready to assess your capital readiness? Take our Capital Readiness Assessment — one of the 8 pillars we use to evaluate founder readiness. See where you stand on the key areas lenders and investors look at most.
About the Author: Rod Loges is CEO of One Degree Financial and host of the MILCOM Founders podcast, where he helps veteran entrepreneurs build businesses with strong financial foundations.
The Ready Founder™ is part of One Degree Financial's commitment to helping founders gain the financial clarity and confidence they need to scale successfully. Learn more at onedegreefinancial.com.
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