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FINANCING YOUR NEXT

LOCATION

Presented in conjunction with

What we’ll be covering:

How to determine if you’re ready to open your next location

How to analyze your finances

How to find the right financing for your needs

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Ask yourself: What’s the market opportunity?

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Target audience

Competition

Strength of your brand

PRO Tip:

Avoid cannibalization!

Ask yourself: Can you scale?

Day-to-day operations

Instructors & staff

Strength of your brand

Sales & marketing

Overall brand & experience

What makes you special?

Can you repeat it?

Ask yourself: What will the costs be?

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Tenant improvement & construction Franchising New equipment New employee(s)

DON’T FORGET: The Dry Spell

Insufficient financing: 2nd most common reason for

business failure.

HOW TO PREPARE: Personal credit

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Check & monitor your credit score with Credit Karma Strengthen score by disputing errors & making regular payments Stronger FICO = better financing options!

Term loan lenders

generally look for >620 FICO

HOW TO PREPARE: Business credit

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Check & monitor your business credit score for free at www.Nav.com/FC Strengthen score by making regular payments from business accounts Stronger scores = less risky & more attractive to lenders!

72% of business owners don’t

know their business credit

scores.

HOW TO PREPARE: Debt service coverage ratio

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How much can you afford to borrow?

HOW TO PREPARE: Revenue analysis

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Estimate monthly & annual revenue. Be conservative.

Estimate fixed (ex. Utility bills) & variable costs (ex. Marketing).

Estimate break-even point. When will you bring in more cash than you spent on the move?

Estimate timeline for profitability.

Rate of return

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upfront investment

& ongoing costs

How to get the right financing in place

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Find the right mix.

Gather what you’ll need to apply.

Find the right lender.

What type of financing is right for you?

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Business credit card or line of credit

Good for:

• Small ongoing/recurring expenses <$25k • Flexibility

Not so good for:

• Big upfront investments or expansion costs • Over-use can be costly, with APR of >15-30%

Tip:

• Pay off full balance month over month for awesome business credit scores!

What type of financing is right for you?

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Bank or SBA loan

Good for:

• Expansion costs & upfront investments >$25k • Low interest rates

Not so good for:

• Opportunities that require flexibility & speed • Business owners with imperfect personal credit

Tip:

• Work on getting a stellar personal FICO score if you want to wait it out for a bank loan!

What type of financing is right for you?

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Non-bank term loan

Good for:

• Expansion costs & upfront investments >$25k • Affordable interest rates & speed (<10 days funding

time)

Not so good for:

• Business owners with FICO <620

Tip:

• Improve your FICO to >620 to qualify for affordable non-bank term loans! Avoid MCAs if you can.

What type of financing is right for you?

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What you’ll need to apply

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Bank statements

Tax returns

Know your profile:

• What’s your DSCR?

• How long have you been in business?

• What’s your sales revenue?

• What’s your personal credit strength?

Be PASSIONATE about the opportunity!

Questions to ask your lender

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Is the cost of your loan clear?

Are you getting the attention you deserve?

How much financing do you actually need?

Checklist

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Draft a business plan:

• Market opportunity

• Anticipated costs & gains

• Financing needs

Gather what you’ll need for a strong loan application.

Carefully review your financing options.

Pick a lender who will set you up for success.

Questions?

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We’re building a better financial world

Learn more at www.fundingcircle.com