Reputation – one of the most important steps in obtaining financing

A good business plan alone is not enough to obtain financing through the FinoMark crowdfunding platform. Potential investors, as well as the financing platform itself, pay close attention to the reputation of your company, shareholders, and management. This naturally raises the question: Why is this so important?

Obtaining a business loan through the FinoMark platform is an opportunity to finance the growth of your company without the lengthy traditional procedures often required by banking systems. However, it is important to know what is taken into account before granting financing on alternative financing platforms before financing projects, how the company's reputation is assessed, why it is important, and what you should know before submitting a loan application.

Who can apply on the FinoMark platform?

FinoMark loans are intended for small and medium-sized enterprises (SMEs). To apply, you must meet the following criteria:

• The company must be registered in Lithuania.
• The business must have been actively operating for at least 12 months.

FinoMark loans are up to EUR 500,000, with a repayment term of up to 36 months. Applications for this financing are submitted online, and during the evaluation process, a thorough check of the company is carried out: from business indicators, plans, and creditworthiness to reputation in the public sphere.

What does a good reputation mean for business?

FinoMark investors want to rely on companies that operate responsibly and transparently. Therefore, reputation encompasses not only a "good opinion" but also specific facts:

• Has the company been involved in any public scandals or legal disputes?
• Has its assets been seized?
• Do the shareholders and management have any credit history issues?
• Has it borrowed responsibly in the past and repaid on time?

The FinoMark team analyzes the company's history over the past 2-3 years, so even if there have been mistakes in the past, it is important to show that they have been corrected and that the company has taken steps to prevent them from happening again.

How does FinoMark assess reputation?
Before listing a project on the exchange, FinoMark conducts a reputation check, which includes:

• Assessment of the credibility of the company and its management;
• Publicly available sources (media, court records);
• Credit history;
• Legal status of pledged assets;
• Potential reputational risks that affect investor confidence.

FinoMark wants to ensure that the borrower is a reliable partner for the investor, as the platform acts as an intermediary whose main basis of operation is investor confidence in the platform.

What to do if there have been reputational problems in the past?

Financial institutions usually assess the credit history of companies over the last two to three years, so the impact of the past may gradually diminish if the company has learned from its mistakes and taken appropriate action. So, mistakes are not a death sentence. If the company:

• has learned from experience,
• has resolved conflicts or debts,
• has strengthened its team and transparency,
• operates in a stable and responsible manner,

this can be seen as a positive development. When submitting your application to FinoMark, you can include explanations or additional information that demonstrates your commitment, changes, stability, and responsibility.

Why is reputation important to investors?

Although the platform makes every effort to ensure the quality of projects, investing always involves risk. Therefore:

• A good reputation helps you stand out from other applications.
• Increases the likelihood that the project will be funded faster,
• Creates a foundation of trust that is essential for the success of crowdfunding.

You can read about all the risks associated with investing in the "Documents" section of FinoMark, which contains a "Description of Investment Risks."

Summary: reputation as an invisible guarantee

The business loan market is increasingly dependent on transparency and trust. On the FinoMark platform, reputation is not a formality – it is an important part of financial assessment.

The good news is that reputation can not only be assessed, but also strengthened. If you are planning to apply for a loan, make sure that your company is prepared to answer not only for its finances, but also for the reputational basis of its activities.