Searching for Capital

How much will you need?

Depends on:

• Type of business• Kinds of products / services provided• Who suppliers will be• Where you are located• Amount of competition• Customer Purchasing Power• Costs

Searching for Capital

SLIDE 2

Where will the money come from?

• Personal Savings• Family and Friends• Banks, Savings and Loans, Credit Unions• Commercial Finance Companies• Venture Capitalists• Government Programs

Searching for Capital

SLIDE 3

SBA Loans

• 7(a) Regular Business Loans• 504 Loans (certified development company)

• Low Doc Loans• SBIC• Capital Access Loans (CAP)• Others

Searching for Capital

SLIDE 4

Short-Term Business Loans

• Line of Credit• Inventory• Commercial• Accounts Receivable

Searching for Capital

SLIDE 5

Other Types of Business Loans

• Medium-term Loans• Long-term Loans

• Mortgages• Real Estate Loans

• Equity Financing

Searching for Capital

SLIDE 6

What kind of collateral will you need?

• Personal Assets

• Savings Accounts

• Life Insurance Policies

• Stocks and Bonds

• Co-Signers

• Lease Assignments / Warehouse Receipts

• Mortgages

Searching for Capital

SLIDE 7

The 5 C’s of Credit

• Character• Capacity• Collateral• Conditions• Capital

Searching for Capital

SLIDE 8

Preparing Your Loan Package

• Business Description• Management Profiles• Market Projections• Purpose

Searching for Capital

SLIDE 9

Preparing Your Loan Package

• Amount• Repayment Plans• Financials

Searching for Capital

SLIDE 10

Establishing and Maintaining Rapport With Your Banker

• Establish a good credit history• Determine if your business is too

big or too small• Invite your banker to your business

Searching for Capital

SLIDE 11

Establishing and Maintaining Rapport With Your Banker

• Keep your banker in the information loop• Work in advance• Never surprise your banker• Be honest with your banker

Searching for Capital

SLIDE 12