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 1

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 2

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 3

Short-Term Business Loans Line of Credit Inventory Commercial Accounts Receivable Searching for Capital SLIDE 4

Other Types of Business Loans Medium-term Loans Long-term Loans Mortgages Real Estate Loans Equity Financing Searching for Capital SLIDE 5

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 6

The 5 C’s of Credit Character Capacity Collateral Conditions Capital Searching for Capital SLIDE 7

Preparing Your Loan Package Business Description Management Profiles Market Projections Purpose Searching for Capital SLIDE 8

Preparing Your Loan Package Amount Repayment Plans Financials Searching for Capital SLIDE 9

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 10

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 11