Why Relationships Alone Don’t Secure Capital (and What Lenders Actually Look For)
- Salena Pryor
- Dec 14
- 1 min read
Relationships matter—but they are not a substitute for readiness.
Many business owners believe that knowing the right person will unlock funding. While relationships can open doors, they don’t replace what lenders and funders require to say “yes.”
Most funding decisions are based on clear criteria, including:
Business financials
Credit history
Cash flow
Capacity to repay
Documentation and compliance
These factors are often referred to as the 5 Cs of Credit, and they exist whether you’re applying at a bank, credit union, or grant program.
A strong relationship might get your application reviewed—but it won’t override missing paperwork, weak financials, or an unclear business model. That’s why so many entrepreneurs feel frustrated after being encouraged to apply, only to be declined.
The real power move is pairing relationships with preparation.
BSBA helps business owners understand what decision-makers actually evaluate and how to prepare before the introduction ever happens. When you’re ready, relationships amplify your success instead of exposing gaps.
Action Step:
Before asking for a referral or introduction, make sure your business can stand on its own. Preparation protects your reputation and your relationships.
Before you leverage relationships, make sure your business is ready to be evaluated.