lending presentation
TRANSCRIPT
[email protected] PH (760) 967-8027
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WELLS FARGO BANK, N.A.
&
BEC and SBDC
1823 Mission Ave, Oceanside
www.sandiegosmallbiz.com
[email protected] PH (760) 967-8027
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BORROWING CAUSES
1. START-UP
2. LONG OR SHORT TERM SALES GROWTH
3. AR COLLECTION SLOWDOWN
4. FIXED ASSET EXPENDITURE
5. RESTRUCTURING LIABILITIES
6. UNPROFITABLE OPERATION
7. ONE-TIME UNEXPECTED EXPENSES
8. EXCESSIVE PAYMENTS TO OWNERS
[email protected] PH (760) 967-8027
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EXPLAIN!
• What caused ….?• For how long?• What can go wrong?• How are you going to be able to re-pay?• Alternative sources of re-payment?• Collateral?
[email protected] PH (760) 967-8027
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BUSINESS PLAN (map)
• How much money do I need to start/run my business?– Normal scenario– Worst case scenario
• How much do I have in hand?• How am I going to get the rest?• Adjust your Business Plan accordingly to what
you have on hand.• Please do not sign a lease or contract before
you have ALL the cash you need.
[email protected] PH (760) 967-8027
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SOURCES OF FINANCING
• Your money• Personal credit cards• Friend and family• Suppliers (30, 60 days)• Banks / (SBA)• Factoring• Investors
[email protected] PH (760) 967-8027
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CREDIT PRODUCTS
• Secured vs. Unsecured Credit instrument• Differences between a LOAN and a LINE and
how they can affect your credit.• Credit card / control, rewards• Line of credit / revolving, Payments 1/120= i• Loans / lump sum, installments
Person/ FICO- 300 to 850 points
Biz/ Dunn & Brad Street Report- 0 to100
[email protected] PH (760) 967-8027
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BANKING
• Why a separate checking account?– Control– Profit determination– Tax write off’s /potentially keeps the IRS away
• Merchant services (receive credit cards)• Payroll (workers comp and taxes)• Insurance (property, liability, key executive)• Retirement (SEP IRA, IRA, 401K)
[email protected] PH (760) 967-8027
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MARKETING
• NO SALES = NO ABILITY TO REPAY• FIND YOUR COMPETITIVE
ADVANTAGE. – Why customers would prefer to buy from me?– What differentiate my product from my
competition?– What will be my customer’s perception of my
company?