Admit You’re in Trouble – The Surprising Power of Transparency
In the world of financing, tough situations are unavoidable. Deals often come with complications—“hair,” as we call it—and it’s tempting to brush those issues aside, hoping the prospective lender or investor will focus on the future instead. But here’s a lesson learned from decades of experience: addressing challenges head-on isn’t just the right thing to do—it’s the smart thing to do.
Admitting upfront that a deal has complexities demonstrates credibility and builds trust with prospects. Remember, due diligence exists to uncover red flags. You’re in a much stronger position if you self-identify those issues upfront and explain how you plan to resolve them. That shows you’re not only aware of the challenges but ready to tackle them with a clear strategy. Transparency turns a tough situation into an opportunity to prove your competence and resilience.
At Sinclair Range, we’ve seen how forthrightness can transform even the most challenging cases. Acknowledge the problem, outline your strategy, and bring your stakeholders into the solution process. That approach isn’t just persuasive—it’s transformative.