Become a BusinessCredit & Funding Ninja

Learn Your Borrowing Options & How to Treat Your Credit as an Asset

PURPOSE• Why are we here?

Build a profitable and valuable business

Peter Drucker

a) Purpose of business is to create…

b) Two functions of any business

SMALL BUSINESS LANDSCAPE

• 28,000,000 Small Businesses in the U.S.

83% - Less than $100,000 in Annual Revenues

6.1% - Between $100,000 - $300,000 in Annual Revenues

4 out of 100 reach $1,000,000 in Annual Revenues.

4 out of 1,000 reach $10,000,000 in Annual Revenues

• 80% fail in First 5 Years acc. to Michael Gerber, author of The e-Myth Revisited3 Reasons Businesses Fail

Resources vs. Resourcefulness

SMALL BUSINESS LANDSCAPE

BUSINESS LIFE CYCLES

“ Coaching is mostly about developing the capabilities of high-potential performers and/or

assisting with transition & growth.”

- HBR

COACHING

OUR 2 GOALS FOR TODAY

1. Begin to Treat Your Credit as an Asset

What it means & doesn’t mean

Is your credit an asset or a liability?

The ONLY reason we really care about credit

2. Understand Your Borrowing Options (beyond the bank and SBA)

Bank & Non-Bank Options

Loans vs. Lines of Credit

When to get your Loans vs. when to get your Lines of Credit

Credit Card usage

OUR 2 GOALS FOR TODAY

FINANCING OPTIONS

There are ONLY 2 ways you can finance your business

Equity or Debt

The Case for Equity

The Case for Debt

HOW MUCH $$ PEOPLE NEED

Acc. to Lendio 59% of their site visitors needed $50,000 or less to fund their businesses.

Our experience - $50-150k

Lines of Credit vs. Loans

Les McKeown’s suggestions on how much money to get for your business

THE COST OF BORROWING

Excellent Credit Not Great CreditLoan Amount $100,000 $100,000Term 10 Years 6 MonthsRate/Cost 6.00% 1.3Monthly Payment $1,110 $21,665Daily $50.45 $984.77Total Cost at Term $133,225 $130,000Total Cost 6 Months $102,954 $130,000

PERSONAL CREDIT

FICO Score Factors

Available Credit

Payment History

Length of History

Number of Inquiries

Type of Credit

Where is your data, lawsuits, FAKO’s

PERSONAL CREDIT

• The ONLY 2 ways you can improve your Credit

PERSONAL CREDIT

BUSINESS CREDIT

Dun & Bradstreet

Experian Business Credit

Equifax Commercial

Rise in importance of Business Credit

Beware of deceptive Biz Credit Sales Tactics

Business FICO/SBSS Scores – 0 to 300

BUSINESS CREDIT

BUSINESS LOANS VS PERSONAL LOANS

How are they different?

CREDIT MONITORING

VS

THE BANKS & SBA LOANS

Banks approve 10-20% of the apps they get from SBO’s

VS

SBA LOANS

Approx. 60,000 7a loans approved every year

60,000 / 28,000,000 = 1/467

SBA Loans looking for:Good Credit Strong Cash Flow

Collateral Liquidity/Reserves

Startups Okay (sort of)

GOALS OF BORROWING

Access Capital

Separate Personal & Business Credit

Protect, Preserve, & Improve Your Credit Profile

Cash-Flow Friendly Financing

Minimize Interest Expense

Maximize Tax Benefit

GOOD USES OF FINANCING

Purchase Assets - 10% down pmt for building, acquisition, etc.

Equipment – do more, do faster, do quicker, etc.

Working Capital

RGA or improving Cash Flow

RECENT DEALS

Ms. Johnson in NJNeeded tractor trailer540 FICO ScoreCurrently Past Due on MortgageApproved for $60,000 to buy TT

Mr. Durham in PANeeded Startup fundingGot him $132,000 approved in 5 daysLines of Credit - No collateralBuying & rehabbing Laundromat

Ms. Luetkemeyer in AZBuilding sales software & training Biz18-30 month mark$425,000 with only a UCC

Mr. Haedrich in CA$402,500 in 10 monthsNo Collateral$150k unsec loan$252,500 in unsec. LOC’s

NEED FUNDING?

Goto http://netprofitexplosion.com/lencred/

Get Free Report – 16 Best Business Financing Options

QUESTIONS?