Controlling How the Cookie CrumblesGetting the “Dough” You Need

Tips for Getting the Dough You Need

1.Review your credit report. o Visit a credit counseling agency.o Develop action plan to improve your credit

2.Get experts to review your business plan and the amount of funding you need.o Think through your business concepto Be sure the financial projections are realistic

Tips for Getting the Dough You Need

3. Make visits with banks and non-traditional lenders. o Determine loan criteria before applying

4. Existing businesseso Keep good financial recordso Provide financial statementso Show profit

Tips for Getting the Dough You Need

5. Criteria important to most non-traditional lenders:a) Business plan, reasonable projectionsb) Startups:

Prove there is a market for your products/services

Track any part-time income

Tips for Getting the Dough You Need

c) Minimum credit score of at least 640 Non traditional lenders will look at credit history, not

just the score Traditional lenders will require higher score

d) Collateral value of 60-75% of loan amount Ex. If requesting loan amount of $20,000, then you will

need to put up collateral valued at least $12,000 - $15,000 of liquidation value

e) Equity investment may be required, depending on collateral

alt.Capital Loan amounts: $500 - $50,000 Loan terms: 3 – 7 years Interest rates: 8.25% - 13% Review credit history, not just credit score Cannot be used to consolidate debt Existing businesses and startups eligible

alt.Capital Credit guidelines:

o Must provide personal guaranteeo Cannot be in default on federal loan,

student loan, or disaster loano Cannot be behind on taxes or child

supporto Requires collateral (60-75% of loan amt)

Lending Sources* alt.Consulting ACCION Tri State Bank HOPE Credit Union EDGE Impact Fund Superior Financial

River City Capital Pathway Lending City of Memphis Innova StartCo

*info can be found at www.morememphis.org

Contact Information:

Cynthia Norwood516 Tennessee Street, Ste. 233/234Memphis, TN 38103Tel: 901.312.9799