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Searching for Capital

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.

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Searching for Capital

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  1. Searching for Capital

  2. 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

  3. 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

  4. 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

  5. Searching for Capital SBA Loans • 7(a) Regular Business Loans • 504 Loans (certified development company) • Low Doc Loans • SBIC • Capital Access Loans (CAP) • Others

  6. Searching for Capital

  7. Searching for Capital Other Types of Business Loans • Medium-term Loans • Long-term Loans • Mortgages • Real Estate Loans • Equity Financing

  8. 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

  9. Searching for Capital The 5 C’s of Credit

  10. Searching for Capital Preparing Your Loan Package • Business Description • Management Profiles • Market Projections • Purpose • Amount • Repayment Plans • Financials

  11. 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

  12. 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

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