1. 1 10 How to Make a Winning Loan Presentation (Business Plan for Getting Funds) Jerry Chautin, Volunteer SCORE Counselor JKChautin@aol.com 10

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3. 3 What We Will Learn Creating an Effective Presentation How to Use it How to Get Funds Where to Get Help

4. 4 3 Purposes of a Business Plan Objective View Operating Tool Financing Proposal

5. 5 Where to Get Funds Personal Savings Rich Uncle Seller Financing Home Equity Credit Cards Private Lender Venture Capital Vendor Loans Bank (including SBA) Combination

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7. 7 Breakeven Point Analysis 1 2 3 4 5 6 7 8 9 10 11 12 Months Operating Expenses Sales

8. 8 Venture Capital VC Firms Angel Investors SBIC & MSBIC Size Matters Proven Cash Flow Established Board Key Officers Industry Preferences

9. 9 Choosing the Best Lender Your current Bank National Bank Community Bank Non-bank Lender Meet Officers Establish Relationship Test the Water Submit Proposal

10. 10 Table of Contents Coverletter A. Photographs B. Memorandum (Exec. Summary) C. Borrower D. Collateral & Assets E. Market Research & Marketing Plan F. Underwriting g. Recommendation

11. 11 Coverletter Personalize 1 or 2 Page Overview State Loan Structure Describe Strengths Solve Weaknesses Recommend Approval

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13. 13 Photographs 5 X 7 on Cover Smiling Officers Street Scene Building Equipment Captioned Explanation No Copies - Only Originals

14. 14 Our offices are located on a well-traveled street. Landlord has given us sign privileges that will help reduce our operating expenses. Sample Photographs Jane Smith fine-tuning our new computer. Jane majored in computer science at the University of Georgia

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16. 16 Borrower Business Overview Legal Entity Prior Successes Sources & Uses of Funds Company & Individual Balance Sheets (Before & After Funding) Historical & Proforma Operating Statements “Prove” All Line Items with Narrative

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18. 18 Collateral & Assets Market Value Real Estate Furnishings Fixtures & Equipment (FF&E) Personal Collateral Cash Instruments

19. 19 Market Research & Marketing Plan Heart of your Business Plan Recast Chamber of Commerce Trade Associations RMA CPA 10K Franchise Disclosure Don’t Generalize Product Uniqueness Overcoming Competition Marketing & Sales Program Relate to Revenues

20. 20 General Information Proforma Eliminate Fluff Market Research

21. 21 Underwriting (Analysis Related to Lender’s Criteria) Financial Feasibility Return (ROI ROE ROA) (Excluding Owner’s Salary) Debt Service Coverage Loan to Assets/Value/Cost Cash, Receivables/Liabilities Many More

22. 22 Recommendation (Summery) Recap Strengths Restate Best Ratios Why a Good Deal “I Recommend ….”

23. 23 What We Have Learned Business Plans For Success Business Plans for Loan Presentations Where to Get Funds Where to Get Help