A Guide to Funding Presentation – May 3rd 2012

Paul Kerr

1. Introduction

2. Bank funding options – general review

3. Micro finance options (First Step)

4. Review of the bank credit submission – discussion on what information they look for (& why)

5. What to do if the answer is NO

6. Why First Choice?

AGENDA

• Career banker 20 years

• AIB, National Irish Bank and Bank of Scotland

• Credit Review Office

• Self employed since Jan2010

• Extensive & varied expertise

• Current access to information

INTRODUCTION

1. Banks seek 30% own input, as a rule

2. The business plan is important, for start-ups but even more so is the person who they are lending the money to. Borrower history, 12 months personal bank statements, loan statements and detailed personal income & expenditure are as important in a funding application

3. Business projections are lovely, but these really need to be broken down into practical numbers – can you really clean 1,000 carpets a week / serve 1,000 dinners etc.?

4. Guarantee’s will always be sought, and are normally required

BANK FUNDING

1. Always make your submission in writing to your bank – keep copies of all information provided

2. Be clear on what you want, why you want it and how you are going to repay the funds

3. Be prepared for extensive due diligence - Borrower history, 12 months personal bank statements, loan statements and detailed personal income & expenditure and net worth statements are all normal requirements

4. Know your numbers – break your projections down into daily and weekly figures and ensure you understand them

5. A good idea needs to be explained and sold.6. Clip

BANK FUNDING

SAMPLE BANK FUNDING APPLICATION

Link

OPTION 1

When you open a Business Current Account as a new Business Start-up, AIB will waive: Account transaction fees for the first two years Cash handling fees for the first two years up to a

maximum of €100 per fee quarter.

SME Loan: • up to €100K @ 4.4% per annum variable• Less than 3yr term & working capital allowed (includes

Agri finance)

Stocking Loan:• Rates negotiable – between 4% and 4.5%

BANK FUNDING

OPTION 1 continued

Overdraft:• Standard rate @ 7.85%

Job Creation loan for SME’s: • must be an existing AIB business customer and

demonstrate that you are investing in a new project, process or expansion initiative that results in the creation of at least one permanent full-time job

• €10,000 up to €250,000

• 4.4% p.a. variable which is a discount of 3.85% off the Bank's standard "AA" Business Loan Variable Rate

BANK FUNDING

OPTION 2

SME Loan: • Higher equity required for lower established brand• Rates from 5.24% based on amount required.

Overdraft:• Standard rate @ 8.05%

Support:• Enterprise builder – free, external mentor support

BANK FUNDING

BANK FUNDING

OPTION 2 – continued

• Certain current account banking services free of charge for two years

• 24 months free monthly subscriptions to Levels 1/2 of Business On Line

• A Visa Business Card with the annual fee waived for the first year

• Access to the Business Start-Up Online Training Course

OPTION 3

SME Loan: • Special rate of 4.1% - also has access to the EIB funds• Typically funding levels of up to €30k @ this rate• 1/3 1/3 1/3

Overdraft:• Standard rate @ 8.45%• Day to day fee-free transaction banking for the first 2

years • Free Internet banking (Bankline) for one year• Waive first lease transaction arrangement fee• Merchant services joining fee waived • www.smallbusinesscan.ie

BANK FUNDING

• Not ‘open for business’ according to local Management

• Only targeting high end corporate business presently

• Not ‘open for business’ according to local Management

• Only interested in Agriculture and Food related industry

BANK FUNDING

FIRST STEP (Micro Finance Ireland): • Loans from €5k up to €25k @ 9% variable (9.3% APR) • Personal loans only – business plan and ‘pitch’

required to ensure quality. Over 70% of applicants are declined so applicants need to know their stuff• Will lend as part of overall funding requirement• Place 50% weighting on the person; process designed

to get to know the borrower • Will pursue non payment of loans – not a soft touch• Access to MBA mentor panel

Qualifying criteria:• Term over 1yr. Interest bearing; Less than 10

employees• Application form (online); business plan*; pitch

MICRO FINANCE INITIATIVE

• Standardised format

• We are dealing with banks & people whom we know and regularly send business to – mutual trust

• We can complete multi-applications at the same time & get you the best funding package

• It’s quick, convenient and excellent value

USING FIRST CHOICE TO ASSIST WITH FUNDING

• Funding is available out there but get your model right

before you submit an application • For those with poor credit history it is more

difficult but be upfront and you have a chance

• The Credit review Office is there as back up support for VIABLE business’ which cannot secure funding

USE ME!

SUMMARY

Paul Kerr

First Choice Financial Services Ltd,

20 Lower Hartstonge Street,

Limerick

Ph. 061 317260

Fax. 061 317263

email – paul@firstchoiceltd.ie

Web www.firstchoiceltd.ie

First Choice Contact Details