Bunin Business Planning for Financing for Linkedin 10-12-12 Show 97-2003 No Pw

7/29/2019 Bunin Business Planning for Financing for Linkedin 10-12-12 Show 97-2003 No Pw

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Jeffrey H. BuninSenior Loan Officer

NMLS# 251928 (NJ Only)201-207-5686 CELL

[email protected]

Capital Lending Corp.8417 Bergenline Ave.

North Bergen, NJ 07047Tel. (201) 295-1400Fax (201) 295-1444

www.CapitalLending.com

Licensed is NJ & FLNMLS# 168832

Solving Tough Funding Problemswith Customized Financing Solutions

Since 1995

Principles of Business Planning & Financing
mailto:[email protected]://www.capitallending.com/http://www.capitallending.com/mailto:[email protected]


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Capital Lending Corp. All Rights Reserved. Important - see slide 37 for product

admonishments. 2

It All Starts With -A Strategic Plan

Summary


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admonishments. 3

What a Strategic Plan Is Not.

It is not financial projections.

It is not an outline of future directionlacking details.

It is not something that is done to gain

funding and then forgotten about.


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admonishments. 4

What a Strategic Plan Is.

It is the detailed operating BLUEPRINT of why the

company exists and how it will achieve its goals.

It is both the long- term VISION as well as the detailedIMPLEMENTATION Plan.

It is THE COMMUNICATIONS TOOL to lead employees

and when summarized in various forms, thecommunications tool to gain the trust of investors and

lenders.


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admonishments. 5

The Problem, when a Strategic Plan IsNot In Place - Lost Opportunities:

Problems are not anticipated and emergencies are thenorm. In the rush to respond and make decisions, thelong-term may be overlooked.

There is no connection between the Strategic Plan andManagements MBOs.

Management is reactive not proactive.

No Implementation Plan.

Investors & Lenders will not fund business.


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admonishments. 6

The Solution: A well thought-out strategic plan comes from a well-

structured strategic planning process.

Such a process encourages management to rethink howthey define their business.

Such a process encourages management to think abouthow to deal with changes in the key factors that affectthe business.

Such a process encourages management to rethink how

all areas of the company operate.

Such a process encourages management to anticipateproblems and solutions before they becomeemergencies.


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admonishments. 7

The Benefits: RESULTS are as expected, not as fate allows.

The UNEXPECTED can be MANAGED.

INCREASED SPEED of DECISONS

The ORGANIZATION UNDERSTANDS and supports managementactions because it understands the big picture and that thecompetitiveness and ultimate survival of the company depends ontheir support ( and the Plan rewards that support!).

The Plan has CREDIBILITY with INVESTORS & LENDERS.

The Plan clearly states what has to be done and why. OUTSTANDINGLEADERSHIP REQUIRES EXCEPTIONAL COMMUNICATIONS.


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admonishments. 8

Getting Started..


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admonishments. 9

METHODOLOGY Define the VISION.

Do a SWOT ANALYSIS for each Key External & Internal Factor.

Define STRATEGIES to get RESULTS that deal with SWOT ISSUES.

Decide on year-by-year detailed IMPLEMENTATION ACTION PLANS.

Translate Implementation Plan into FINANCIAL FORECAST.

Assess the overall RISKS and SENSITIVITIES.

REVIEW and re-do until entire package is acceptable, plausible and do-able.


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admonishments. 10

REVIEW Review plan on a top down and bottom up basis for a reality check. Does it make common

sense?

Is the VISION definitive and insightful?

Have the KEY SUCCESS FACTORS been analyzed correctly?

Have all the ISSUES been addressed?

Do the STRATEGIES get the RESULTS that deal with the issues? Is the timing correct?

Will the ACTION PLANS successfully implement the strategies? Are all the resourcesavailable?

Are the FINANCIAL RESULTS & METRICS acceptable?

Are the RISKS acceptable? Are any undue risks not being addressed and minimized?

REVIEW and re-do until entire package is acceptable, plausible and do-able


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admonishments. 11

ITS NOT THE PLAN,BUT THE PLANNING

- Gen. Dwight D. Eisenhower

The Plan is a living document.

The Plan details will change because actual future eventswill sometimes differ from forecasts.

The Planning Process prepares management for these

changes.

Flexibility in adapting to these changes is required.

The Plan should therefore be formally revisited each yearand the necessary revisions made to be sure company is

still on the right track.

The Plan should be rethought every 3 to 5 years.


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admonishments. 12

Some Examples ofInnovative Financing thatCan Help Implement The

Business Plan


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admonishments. 13

Types of Financing Available

Commercial Real Estate

Business Financing

Construction Financing

Bridge Loans

Residential


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admonishments. 14

What are the 4 Principles of

Business Lending?

Cash Flow

Credit / Character

Collateral

Management Experience


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admonishments. 15

Cash Flow

EBITDA (without one time charges)

Earnings Before Interest, Taxes, Depreciation & Amortization

Exclude One Time Non-Recurring Charges (Plant or facility closings,etc.)

Evidence of Cash Flow

3 Years of Federal Business Income Tax Returns

3 Years of Federal Personal Income Tax Returns

Bank Deposits

Rent Roll Net Operating Income

Business Plan

Special Programs may allow borrowers to finance projects with NoPersonal Income Verification (NIV). This depends on the nature ofthe project and the details.


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admonishments. 16

Credit / Character

Evidence of credit is your credit reportand credit scores. The FICO (FairIsaacs & Company) credit score

system is the most widely usedmeasure of credit worthiness.

Good character is a law abiding person

of integrity and candor who lives up tohis/her obligations.


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admonishments. 17

Credit / Character

FICO Distribution Chart - The chart below is based

on the percentage of consumers within a FICO

score range. As you can see over 1/2 of the U.S.

population (58%) has a FICO score of 700 andhigher. http://www.myfico.com/CreditEducation/CreditScores.aspx
http://www.myfico.com/CreditEducation/CreditScores.aspxhttp://www.myfico.com/CreditEducation/CreditScores.aspxhttp://www.myfico.com/CreditEducation/CreditScores.aspxhttp://www.myfico.com/CreditEducation/CreditScores.aspx


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admonishments. 18

Credit / Character FICO Delinquency Chart - The chart below is based on consumer's

FICO scores and what their percentage of delinquency is on a credit

card or loan payment. As you can see, FICO scores that are above

700 are considered very low credit risks. This means that for every

100 borrowers only 5 or less will be delinquent. FICO scores below

700 can be considered higher credit risk and the delinquencies

become greater as the FICO score gets lower.

https://www.econsumer.equifax.com/consumer/sitepage.ehtml?forward=cps_hlsysample

Delinquency Rates by FICO Score
https://www.econsumer.equifax.com/consumer/sitepage.ehtml?forward=cps_hlsysamplehttps://www.econsumer.equifax.com/consumer/sitepage.ehtml?forward=cps_hlsysample


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admonishments. 19

Credit / Character www.myfico.com

The higher your FICO scores, you the less youpay to buy on creditno matter whether youregetting a home loan, cell phone, a car loan, or signingup for credit cards.

ON AVERAGE, A CHANGE OF 100 FICO POINTSCAN AFFECT INTEREST RATES ABOUT 1%.

Good credit helps borrowers secure better interestrates. However, many programs allow borrowers withcredit challenges to finance projects as long as there

are other compensating factors.
http://www.myfico.com/http://www.myfico.com/


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admonishments. 20

What is the basis of your credit score?

www.myfico.com says that:

35% based on payment history

30% based on amount owed 15% based on length of credit history

10% based on new credit

10% based on types of credit used
http://www.myfico.com/http://www.myfico.com/


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admonishments. 21

Management Experience

Relevant Management & Technicalexperience in subject business.People finance people, not projects.

A Business Plan for a New orExpanding/Changing Organization.

Evidence of Management Experience

Resume

References


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admonishments. 22

Some Examples of the ManyInnovative Commercial Real

Estate Programs Available


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admonishments. 23

Commercial Real Estate Products

Multi-family programs

Mixed-use programs

Loans for land and construction

Property/Leasehold Improvements

Offices

Shopping Centers

Retail Stores

Hard To Finance Properties

Loans for churches, gas stations, golf courses, hotels,motels, restaurants, retail stores, industrial buildings,marinas, auto repairs, dry cleaners, brownfields, etc

Domestic & International Properties


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admonishments. 24

Non-Bankable Loans

Non-Bankable Loans are for transactions that are too riskyfor traditional banks. Some examples are:

Environmentally challenged properties

Foreclosure Bailouts

Transactions Requiring Fast Closings

DOES NOT FOCUS on the borrowers personal income,employment, tax returns, personal assets or credit (FICO can

be very low with bankruptcies, judgments, etc.) DOES FOCUS on commercial real estate or other assets as

collateral.


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admonishments. 25

Some Examples of the ManyInnovative BusinessFinancing Programs

Available


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admonishments. 26

Business Loans for New andEstablished Businesses

Business Lines of Credit / Short term BusinessFinancing

Loans for Account Receivables and /orPurchase Order Financing

Equipment loans and leases

Non-Bankable Loans

Venture Capital

Loans for domestic and international projects


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admonishments. 27

Receivables and/orPurchase Order Financing

Pay off your creditors quickly and get invoice discounts

Access to cash for special purchases & volume discounts

Reduce cost for collection and invoice processing

Expand your availability with key suppliers Ensure timely deliveries to your customers

Fulfill larger orders to increase your bottom line

Grow your sales without increased bank debt or selling equity

Use factoring cash to pay suppliers; use YOUR cash formarketing, additional payroll, and other tools you need to grow

Domestic & International Receivables

Competitive Interest Rates & Terms


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admonishments. 28

Equipment Loans and Leases

Up to 100% Financing

Terms based on the Life of the Asset

Sale Leaseback

Competitive Interest Rates & Terms


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admonishments. 29

Venture Capital

Match Clients with the most appropriateinstitutional investors.

Competitive Investment Banking Fees

Help structure deal that takes intoaccount the clients entire

business/financial picture.


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admonishments. 30

International Financing

Letters of Credit


Competitive Interest Rates and Terms

Project financing available in many countriesof:

North, Central & South America

Caribbean Europe

Far East


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admonishments. 31

Some Examples of the ManyInnovative Construction &

Bridge Financing Programs

Available


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admonishments. 32

Multifamily and AdultCommunity: construction/rehabilitation, purchases andrefinances

Up to 90% LTC (Loan to Total Cost) Construction to Permanent Financing

Up To 40-year Term with Low Fixed Rates

Non-recourse

Assumable


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admonishments. 33

Nursing Home/Assisted LivingProperties: funds for

improvements No Loan to Value Constraint

Financing of Existing Mortgage and

Improvement Costs at a Low Fixed Rate

Existing Loan Terms Can Be Extended by 12Years

Non-recourse

Assumable


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admonishments. 34

Bridge Financing

Term: 1 to 3 years

Lending Area: United States

Loan Size: $500,000 to $50,000,000+

Interest Rates: Competitive

Amortization: Interest Only

Loan to Value: Up to 75%

Closings in as little as 2-7 business days


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admonishments. 35

Some Examples of the Many

Innovative Residential RealEstate Financing ProgramsAvailable

In Some Instances a Small Business Owner MayBe Able Use Home Equity to Help Fund their

Business


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admonishments. 36

Residential Mortgages

Residential Real Estate Financing Aggressive FHA Programs

Lower Credit Scores

Up to 50% Debt to Income Ratio

Loan to Value up to 97.5% Financing for remodeling and repairs

Up to 85% Cash Out Refi

Condo and Co-Op Financing

No Personal Income Verification Loans for InvestmentProperties may be possible depending on the details.

Reverse Mortgages


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admonishments. 37

Product Admonishments

Restrictions may apply. Materiallimitations on the availability of creditmay exist. Documentation requirementsmay vary.

Please contact CLC for a freeconsultation.


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admonishments. 38

Summary of Financing Available


Business Financing

Bridge Loans

Construction Financing Residential Real Estate


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admonishments. 39

CLC is Innovative &Competitive

CLC is the ideal financial partner forany institution, any organization,business or individual.

Capital Lending stands out for itsflexibility and competitive rates andterms.


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admonishments. 40

Capital Lending Corp.s Traditions

We treat our Clients with dignity and respect

We educate our Clients so they can makebetter decisions

We are completely transparent with ourClients no hidden or unexplained fees

We focus on Client relationships nottransactions

We offer complimentary professional Clientconsultations


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admonishments. 41

Top Ranked Lender

Capital Lending Corp. offers a complete line ofreal estate & business financing products.

CLC has been ranked by National Mortgage Newsamong the top 100 licensed mortgage companiesand banks arranging residential and commercialloans.

Contact:


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admonishments. 42

Contact:Jeff Bunin, Senior Loan Officer

NMLS# 251928 (NJ Only)

Dedicated to Client GoalsCell (201) 207-5686Fax (201) 295-1444

[email protected]

B.Ch.E. - CCNY M.B.A. - Rutgers

Former Adjunct Prof.,Rutgers MBAProgram
mailto:[email protected]:[email protected]


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Capital Lending Corp.8417 Bergenline Ave.

North Bergen, NJ 07047Tel. (201) 295-1400Fax (201) 295-1444

www.CapitalLending.comNMLS# 168832

You Can Do More with Capital
http://www.capitallending.com/http://www.capitallending.com/

Bunin Business Planning for Financing for Linkedin 10-12-12 Show 97-2003 No Pw

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