Scott Crockett, Everest Business Funding’s CEO, Shares 5 Red Flags That Tell You Your Small Business Will Have Troubled Funding

Scott Crockett
3 min readApr 20, 2021


Fundraising is equal parts terrifying and exciting, especially for your first round. The stark reality, however, is that not all rounds are going to be successful. Your business may not be ready to attract outside investment. In this article, Scott Crockett with Everest Business Funding covers 5 signs that may indicate your business will have trouble getting funded.

Founders Have No Other Funding Source

If you expect investors to just hand over millions of dollars to untested individuals who could just disappear with the money the next day, think again. You need to show that your business is already sustainable, and not having any substantial savings ahead of time is not going to be a good look for you. Honestly convey to them your monetary situation, display confidence in your ability to sustain your business, and you won’t have this problem.

Founder Has No Team

Investors don’t like it when all they see is one guy pitching a big dream with nobody around them to back them up. It makes your pitch seem much more hollow since you’re showing them that you haven’t already convinced anybody else that your business can be successful. Before you even consider outside funding, you need to have brought on some people that can back you up. If nobody else is following you, why should the investors?

Poor Credit Rating

It should go without saying that if you can’t be trusted with a standard consumer credit card, you definitely won’t be trusted with anything more significant. Being affected by a global financial crisis is understandable, but how were you faring before and after? How about filing taxes? Are you up to date on that? Don’t be one of those businesses that get crushed by the IRS for failing to stay up to date on necessary paperwork. Before you even consider handling somebody else’s money, make sure that your credit ratings are up to snuff.

Founder Is Blindly Optimistic

Nothing will drive investors away quicker than somebody who has no idea what they’re talking about. If you tell the investors that everything will go perfect, that there will be sunshine, rainbows, and cotton candy, don’t expect them to stick around very long. While it is important that you aren’t depressed about prospects, you also need to be realistic about your business’s challenges.

Business Has No Market

If you go online to looking up information about your idea and can’t find anybody else with a similar one, you might have a problem. Next to no idea is entirely original. If you can’t find anyone who’s dealing in what you’re thinking of starting up, it’s likely because there’s no market for what you want to do. If something isn’t selling in some way already, it isn’t likely to get startup funding. Simply put, most investors aren’t going to blindly invest in something completely unproven.

Scott Crockett with Everest believes in the potential of all startups. If you’ve got an idea you know can work, don’t give up. Your hard work and perseverance will pay off in the end.

About Scott Crockett

Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett’s track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.