Mo’ Money, Mo’ Problems: The Truth About Funding

Summary

Every entrepreneur wants more funding—but what happens after you get approved?

In this episode of The Smart Credit Experience, Jeri Toliver breaks down one of the biggest misconceptions in entrepreneurship: that access to capital automatically solves business problems.

If you've ever wondered whether you should apply for a business loan, use business credit, or leverage other people's money to scale your company, this episode is a must-listen.

You'll learn:

Why growing a business requires more cash than most entrepreneurs expect
The difference between revenue, profit, and cash flow—and why cash flow keeps businesses alive
The biggest mistakes business owners make after getting funded
Five questions you should ask before borrowing another dollar
How lenders evaluate your business beyond your credit score
Why becoming fundable is about more than getting approved

Whether you're building a startup, preparing for business funding, or looking to scale your company responsibly, this episode will help you think differently about capital and cash flow.

Resources Mentioned:

🎯 Take the Free Fundable Quiz: https://smartcreditcoach.com/quiz.html

🚀 Register for the First Steps to Fundable Workshop: https://smartcreditcoach.com/fstf

🎙️ Explore more episodes: https://smartcreditcoach.com/podcast

If you enjoyed this episode, be sure to subscribe, leave a review, and share it with another entrepreneur who's working to build a business that's not only fundable—but financially sustainable.

Transcript

17:28:32 --> 17:28:50
Jeri Simone Toliver: Mo money, mo problems. I know you've heard it. We've all heard it before. In fact, it's something that really has been sticking with me as an entrepreneur. Now, when I was younger, I thought that this was just more of like, you know, a catchy lyric, something to bob your head to.

17:28:50 --> 17:29:05
Jeri Simone Toliver: But after spending more than a decade helping entrepreneurs with building fundable businesses, I can honestly tell you that there's a lesson in it because money isn't a bad thing. It doesn't cause a lot of stress and anxiety.

17:29:05 --> 17:29:21
Jeri Simone Toliver: And truth be told, I love helping business owners with getting access to capital. I believe in business credit. I believe in SBA loans. I believe in lines of credit. I believe in using other people's money to grow your business. But I've also watched businesses get approved.

17:29:21 --> 17:29:38
Jeri Simone Toliver: approved for hundreds of thousands of dollars and still end up closing their doors. So I've realized that the problem isn't about getting the money. In fact, getting the money is the easiest part. The problem is what happens after you get it.

17:29:39 --> 17:29:58
Jeri Simone Toliver: And that's what I want to talk to you about today, because one of the biggest misconceptions in entrepreneurship is that funding is going to solve all of your business's problems, and it just doesn't. It really doesn't. Funding does create opportunities, though. So, whether those opportunities turn into growth or become.

17:29:58 --> 17:30:16
Jeri Simone Toliver: expensive mistakes, it really just depends entirely on how well you manage your money and manage your business. Uh, one thing you've probably heard me say before is growing a business ***** cash. Every stage of business requires money, and when you get more customers.

17:30:16 --> 17:30:20
Jeri Simone Toliver: You need more inventory. Well, you need, uh…

17:30:30 --> 17:30:34
Jeri Simone Toliver: Oh, give me an hour.

17:30:35 --> 17:30:37
Jeri Simone Toliver: I need to put this on Do Not Disturb.

17:30:43 --> 17:30:46
Jeri Simone Toliver: All right, let's try this again.

17:31:01 --> 17:31:18
Jeri Simone Toliver: Mo money, mo problems. I've heard it before. You've heard it before. We've all heard it before. And you know, when I was younger, I thought that this was just, uh, you know, one of those catchy lyrics that you bob your head to. But after spending more than a decade helping entrepreneurs build fundable businesses.

17:31:18 --> 17:31:37
Jeri Simone Toliver: And, you know, it's not that money or funding or capital is a bad thing. Um, it's not that it just creates all these problems for you. Uh, the truth is, I love helping business owners get access to capital. I believe in it. I believe in business credit. I believe in, um, you know, having access to capital.

17:31:37 --> 17:31:47
Jeri Simone Toliver: Sba loans. I believe in lines of credit. I believe in using other people's money to grow your business. But I've also watched businesses.

17:31:47 --> 17:32:08
Jeri Simone Toliver: get approved for hundreds of thousands of dollars and still end up closing their doors. So the problem isn't about getting money. In fact, getting the money is the easiest part about all of this. And so the problem really is what happens after you get it. So that's what I want to talk to you all about today.

17:32:08 --> 17:32:16
Jeri Simone Toliver: Uh, because one of the biggest misconceptions in entrepreneurship is that funding solves all of your business's problems, but I'm here to tell you that it doesn't.

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Jeri Simone Toliver: Funding, instead, it creates opportunities. Now, whether those opportunities turn into growth or become expensive mistakes depend entirely on how you manage your business.

17:32:29 --> 17:32:37
Jeri Simone Toliver: One thing that you've probably heard me say before is that growing a business ***** a lot of cash.

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Jeri Simone Toliver: Every stage of your business requires more money. So, you know, think about it. When you get more customers, you need more inventory. You need more staff, more software, more marketing, more systems, higher payroll, more insurance, more taxes.

17:32:53 --> 17:33:08
Jeri Simone Toliver: Everything legit gets more expensive. Now, don't get me wrong, growing a business, it's really exciting. You know, it's exciting to see your numbers going up. It's exciting to see customers coming in, but growing that business and funding that growth.

17:33:08 --> 17:33:13
Jeri Simone Toliver: Is really expensive. You know, think about it this way. I have a client.

17:33:13 --> 17:33:22
Jeri Simone Toliver: Uh, that works, uh, a lot of, like, government contracts. And just recently, she landed a $300,000 project.

17:33:22 --> 17:33:27
Jeri Simone Toliver: $300,000. Now, most people, they'll celebrate. You know, they'll be…

17:33:27 --> 17:33:33
Jeri Simone Toliver: toasting, popping bottles of champagne, and they should, don't get me wrong, but what they don't see.

17:33:33 --> 17:33:35
Jeri Simone Toliver: is that…

17:33:35 --> 17:33:42
Jeri Simone Toliver: They might have $800,000, $80,000 or $100,000 in expenses.

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Jeri Simone Toliver: Right. Like this client, she got a $300,000 project, but she has to hire people. She has to get an equipment. She has to invest into servicing that contract. So by the time it's all said and done, she's going to come out of her pocket.

17:33:58 --> 17:34:08
Jeri Simone Toliver: about $100,000, and she'll finish the project, and then she still has to wait 60 days before she gets paid.

17:34:08 --> 17:34:18
Jeri Simone Toliver: And so, in other words, she has to carry and foot these expenses by herself until the project is done and she collects a check.

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Jeri Simone Toliver: Now, you know, as you can see, that can create a lot of chaos in most businesses, right? Like waiting 60 days to get paid and spending up to $100,000 just to get paid would turn a lot of people off. But that's why business funding exists.

17:34:36 --> 17:34:51
Jeri Simone Toliver: Because many healthy businesses, businesses that are doing very well, outgrow their cash. Happens all the time. And so what happens is they end up needing more capital, more working capital to fund the growth.

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Jeri Simone Toliver: And so.

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Jeri Simone Toliver: There's a very important distinction that you should.

17:34:58 --> 17:35:10
Jeri Simone Toliver: be aware of before you start borrowing money, and that you should know that just because you're borrowing money or you're looking for funding doesn't mean that your business is in trouble.

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Jeri Simone Toliver: It means that your business is moving to the next level. And that's what everybody wants, right? But the problem that I see normally is entrepreneurs get themselves into trouble.

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Jeri Simone Toliver: You know, they get approved for funding, and then they start acting like they won the business game. Like, they're winning it. They've won, and there's nothing else to do. I got this. They start posting screenshots on social media. I got $100,000 approved, 250 k.

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Jeri Simone Toliver: Everyone's celebrating, right? But nobody's asking, what's the plan? Because once that money hits your account, that lender is expecting.

17:35:47 --> 17:35:57
Jeri Simone Toliver: something. You know, you have obligations, and you have responsibilities that are attached to this money, which means every single month, your payment is due.

17:35:57 --> 17:36:07
Jeri Simone Toliver: Whether the business is doing good, whether the business is slow, uh, whether your marketing campaign actually worked, whether your biggest customer paid you, or…

17:36:07 --> 17:36:20
Jeri Simone Toliver: they stiffed you, the payment is still due. The lenders don't care. That's why I tell people, getting approved, it's not the finish line. It's legit the beginning.

17:36:20 --> 17:36:32
Jeri Simone Toliver: Because think about it. Funding your business isn't something that happens once. It's something that happens numerous times over the life of your business. And so the first time you get funded.

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Jeri Simone Toliver: is the first time that you're accepting an opportunity. You're accepting the responsibility.

17:36:40 --> 17:36:50
Jeri Simone Toliver: to deliver on your promises, to build trust with bankers and lenders. Because over the years, I've noticed something very interesting.

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Jeri Simone Toliver: That… money doesn't…

17:36:54 --> 17:37:09
Jeri Simone Toliver: It doesn't make business owners better. You know, it really just exposes who they already are. And so if you're disciplined, you know, if you're a disciplined business owner, funding gives you the ability to grow faster. If you're careless.

17:37:09 --> 17:37:19
Jeri Simone Toliver: Funding allows you to make even more careless mistakes. You know, think about a bucket, right? Think about a bucket that has holes in it at the bottom.

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Jeri Simone Toliver: Most entrepreneurs think that they just need more water, that if they just pour more water, more water.

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Jeri Simone Toliver: Faster water into the bucket.

17:37:31 --> 17:37:46
Jeri Simone Toliver: That the the bucket's gonna fill. But the problem isn't the water. Right? The problem are the holes, the leaks. And businesses have leaks too. Maybe you're overspending.

17:37:46 --> 17:38:03
Jeri Simone Toliver: Maybe you don't have a bookkeeper. Maybe your books aren't even accurate. Maybe you don't even know your profit margins. Maybe you don't know that you're pricing your services and products too low. Maybe you're making emotional spending decisions instead of making strategic ones.

17:38:03 --> 17:38:17
Jeri Simone Toliver: Until those problems are fixed, more funding, more money is not going to solve those problems. It's literally just going to delay the consequences and the inevitable, which is…

17:38:17 --> 17:38:24
Jeri Simone Toliver: business failure because you can't overspend and hope your way into success.

17:38:24 --> 17:38:30
Jeri Simone Toliver: And so here's a lesson that I wish every entrepreneur understood.

17:38:30 --> 17:38:36
Jeri Simone Toliver: that revenue and cash flow are not the same thing.

17:38:36 --> 17:38:51
Jeri Simone Toliver: You can legit have a business that's making $500,000 a year and still struggle to keep your lights on and pay your bills. I've seen it. I've seen it firsthand. You can also have a business that's making.

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Jeri Simone Toliver: Less revenue, not even clearing six figures, but still have plenty of cash in the bank available because that money is well managed.

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Jeri Simone Toliver: Because it's not about how much money you make, it's about how much money you keep.

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Jeri Simone Toliver: That's why lenders don't just look at your sales. They look at your financial habits overall.

17:39:14 --> 17:39:29
Jeri Simone Toliver: Can you manage debt? Can you make payments consistently? Can your business generate enough cash flow to support its obligations? Those are the questions that lenders are asking themselves and the questions that actually matter.

17:39:29 --> 17:39:39
Jeri Simone Toliver: Because lenders aren't invested in excitement or hope or prayers. They're invested in your ability.

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Jeri Simone Toliver: to manage risk.

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Jeri Simone Toliver: That's what they're invested in. They're invested in your ability to be predictable.

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Jeri Simone Toliver: That's what they're invested in. So, before you go trying to, uh, borrow some money, or if you've already borrowed some money, before you go borrow another dollar, I want you to slow down, and I want you to ask yourself a few questions.

17:40:02 --> 17:40:07
Jeri Simone Toliver: First question you should ask yourself, what exactly am I using this money for?

17:40:07 --> 17:40:18
Jeri Simone Toliver: And don't say growth, because growth is not a good answer, it's not even specific enough. You need to be specific. You need to be very specific about what you need this money for, what you're gonna use it for. Second.

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Jeri Simone Toliver: How will this investment make my business stronger or more profitable?

17:40:26 --> 17:40:32
Jeri Simone Toliver: Now, I see a lot of business owners all the time that are racing their way to the bottom.

17:40:32 --> 17:40:38
Jeri Simone Toliver: They're racing to the bottom. They're trying to see, you know, how can I serve customers at the cheapest rate?

17:40:39 --> 17:40:46
Jeri Simone Toliver: Business owners, as a business owner, as an entrepreneur, your job is not to worry about affordability.

17:40:46 --> 17:40:56
Jeri Simone Toliver: Some of it, it is. But most of it, if not all of your responsibility, is revolving around being profitable.

17:40:56 --> 17:41:06
Jeri Simone Toliver: You all are… most people are a for-profit business. So your job is to make a profit, especially if you're trying to borrow money.

17:41:06 --> 17:41:13
Jeri Simone Toliver: Third question to ask yourself, how long will it take this investment to pay for itself?

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Jeri Simone Toliver: Fourth question. If sales drop by… 30% next month.

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Jeri Simone Toliver: Could you still comfortably afford to make the payments?

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Jeri Simone Toliver: And finally…

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Jeri Simone Toliver: What is my plan to pay this debt off?

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Jeri Simone Toliver: Let me tell you something. If you don't have answers to those questions, you're borrowing too soon.

17:41:42 --> 17:41:51
Jeri Simone Toliver: You need to have clear answers to these questions before you go filling out any applications or meeting with any bankers.

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Jeri Simone Toliver: Now, I don't want you to think that I'm discouraging you from getting funding. I don't want you to think that I'm discouraging you, um, from getting capital or making you think that this is going to cause huge problems for you and your business.

17:42:06 --> 17:42:21
Jeri Simone Toliver: I I just want you to be aware. I I want you to avoid the very costly mistakes that entrepreneurs make when they start trying to get funding for their businesses. Because, I mean, some of the most successful businesses in the world.

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Jeri Simone Toliver: We're used… we're built using other people's money.

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Jeri Simone Toliver: So, the key is making sure that every single dollar that you borrow has a purpose. And the purpose shouldn't be to help you catch up on your personal bills, to pay your mortgage, it shouldn't be that.

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Jeri Simone Toliver: It should be dedicated to growing the business so that you can take care of those things.

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Jeri Simone Toliver: Your business funding is not to save you from your personal problems.

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Jeri Simone Toliver: It's not there for that. It's there to help you grow your business, the vehicle that you decided to start, so that you could have more freedom in your life, so that you can show up for the people that care about you, that love you, that count on you.

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Jeri Simone Toliver: That's what it's all about. Because when you…

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Jeri Simone Toliver: When you make sure that every dollar has a purpose, you then also make sure that your business.

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Jeri Simone Toliver: has a plan.

17:43:19 --> 17:43:26
Jeri Simone Toliver: Right? Because borrowing money to buy equipment that is going to increase your production is good.

17:43:26 --> 17:43:31
Jeri Simone Toliver: Borrowing money to hire employees because your demand is growing is great.

17:43:31 --> 17:43:38
Jeri Simone Toliver: Borrowing money to invest into marketing that has a proven return is amazing.

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Jeri Simone Toliver: Borrowing money to create new opportunities for your business. Awesome.

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Jeri Simone Toliver: So, don't borrow money just because it's there. There's plenty of money out here to borrow. There is no shortage on capital out here, trust me.

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Jeri Simone Toliver: Access to capital is a privilege. You are not…

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Jeri Simone Toliver: What do you call?

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Jeri Simone Toliver: It's a privilege, okay? You're not entitled to funding. A bank doesn't have to say yes.

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Jeri Simone Toliver: What they have to do is make sure that you're qualified.

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Jeri Simone Toliver: So, treat it like a privilege. Treat it like it's a gift, because it is.

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Jeri Simone Toliver: And so I'm going to leave you with this.

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Jeri Simone Toliver: One of the biggest shifts that I had to make as an entrepreneur was realizing that.

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Jeri Simone Toliver: Success isn't measured by how much funding you could get approved for.

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Jeri Simone Toliver: Uh, when I first learned about funding, when I… when I first learned about business credit and just how all this stuff worked.

17:44:41 --> 17:44:42
Jeri Simone Toliver: It was like…

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Jeri Simone Toliver: a light just was shining so bright like the light bulb was going off because I realized that wow like there's so much money out here.

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Jeri Simone Toliver: You know, I made it. I'm going to the Promised Land.

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Jeri Simone Toliver: But.

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Jeri Simone Toliver: As I was getting all this funding, I realized that.

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Jeri Simone Toliver: Managing this amount of money is very different than managing credit on your personal side. On your personal side, when you're managing credit, you know, you'll probably get approved for maybe a credit card with a $10,000 limit.

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Jeri Simone Toliver: But on the business side, they're giving you higher limits. You're getting $30,000, $50,000, $80,000, $100,000 lines of credit.

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Jeri Simone Toliver: And so, it's not about just getting it, it's about what are you gonna do with it? How are you gonna manage it? How are you going to use the resources that you've already been given?

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Jeri Simone Toliver: Because, truthfully, anybody can chase some approvals, right? Entrepreneurs who build lasting businesses, though, they focus on…

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Jeri Simone Toliver: Stewardship.

17:45:48 --> 17:45:51
Jeri Simone Toliver: Being good stewards of what they are given.

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Jeri Simone Toliver: Because don't expect to get more of something that you don't already appreciate.

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Jeri Simone Toliver: If you don't appreciate the funding, if you don't appreciate the opportunities, if you don't appreciate the privilege.

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Jeri Simone Toliver: Then don't expect to get more of it. That's just law. It's a universal law. So, you know, at the end of the day, if you want to be a very successful entrepreneur that has a business that grows for years, you need to know.

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Jeri Simone Toliver: Right? You need to know where every dollar is going. You need to know and understand your numbers. You need to know and plan where the money is going.

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Jeri Simone Toliver: Before you spend it.

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Jeri Simone Toliver: And when you borrow, it's because you've already decided exactly how that investment is going to help you get a return, how it's going to help you take yourself and your dream to the next level.

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Jeri Simone Toliver: That is what being fundable is really all about. It's not just about qualifying for funding.

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Jeri Simone Toliver: but becoming the kind of business that knows exactly how to use it wisely. That's what it's really about.

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Jeri Simone Toliver: And so, here's the deal, y'all. I, um… I just want to say thank you for spending some time with me for a couple of minutes for this episode, and I hope that…

17:47:09 --> 17:47:29
Jeri Simone Toliver: it gave you a new perspective on how to fund your business. And so, with that in mind, I'd love to invite you to take our free fundable quiz. It's a quick way to see your business, uh, to see your business through more of a lender's eyes, and then identify what you can improve before you go to a lender to get approved.

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Jeri Simone Toliver: approved, right? So I'm going to leave a link in this slide.

17:47:35 --> 17:47:45
Jeri Simone Toliver: uh, if you… some of y'all probably listening to this on our website. If so, I'm gonna leave a link below this. If you're… if you're listening to this on any other platform, like YouTube, I will also leave it in the description.

17:47:45 --> 17:48:00
Jeri Simone Toliver: And then if you want to take the quiz directly on our website, you can visit us directly at smartcreditcoach.com. And if you're ready to build a stronger financial future and foundation for your business, then I want to invite you to join us for our First Steps to Fundable workshop.

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Jeri Simone Toliver: This is going to be a live Zoom workshop that we're going to conduct to teach you the systems, the strategies, and the habits that'll help your business get not only funded, but it'll help you with actually managing it successfully and give you a plan and strategy on what to do with it.

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Jeri Simone Toliver: Uh, and so you can visit us at smartcreditcoach.com slash.

17:48:23 --> 17:48:25
Jeri Simone Toliver: FS…

17:48:25 --> 17:48:31
Jeri Simone Toliver: Tf, that's 1st steps to fundable Fs.

17:48:31 --> 17:48:33
Jeri Simone Toliver: T. F.

17:48:33 --> 17:48:39
Jeri Simone Toliver: First Steps are fundable. SmartCreditCoach.com slash FS.

17:48:39 --> 17:48:40
Jeri Simone Toliver: TF.

17:48:41 --> 17:48:52
Jeri Simone Toliver: And if you enjoyed today's episode, be sure to subscribe to the Smart Credit Experience, leave us a review, and share this episode with another entrepreneur who's focused on building their business that lasts.

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Jeri Simone Toliver: Until next time, keep building, keep learning, and remember, getting funding can help you grow your business. Learning how to manage that funding is what's going to keep your business alive.17:28:32 --> 17:28:50

Jeri Simone Toliver: Mo money, mo problems. I know you've heard it. We've all heard it before. In fact, it's something that really has been sticking with me as an entrepreneur. Now, when I was younger, I thought that this was just more of like, you know, a catchy lyric, something to bob your head to.