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Searching for Capital. Searching for Capital. Lesson Goals: Realize sources of outside capital Identify types of loans offered by commercial lenders Learn how to prepare a loan package Learn how to establish and maintain a relationship with a commercial lender. Searching for Capital. - PowerPoint PPT Presentation
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Searching for Capital
Lesson Goals:
• Realize sources of outside capital• Identify types of loans offered by commercial
lenders• Learn how to prepare a loan package• Learn how to establish and maintain a
relationship with a commercial lender
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
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
SBA Loans
• 7(a) Regular Business Loans• 504 Loans (certified development company)
• Low Doc Loans• SBIC• Capital Access Loans (CAP)• Others
Searching for Capital
Searching for Capital
Other Types of Business Loans
• Medium-term Loans• Long-term Loans
• Mortgages• Real Estate Loans
• Equity Financing
Searching for Capital
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
The 5 C’s of Credit
Searching for Capital
Preparing Your Loan Package
• Business Description• Management Profiles• Market Projections• Purpose• Amount• Repayment Plans• Financials
Searching for Capital
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
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
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