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5Cs of Credit Deck
- 1. Accessing Capital: 5Cs of Credit Richard Gianni Market President, Houston Regional President, East Texas Region 888.215.2373 houston@liftfund.com LiftFund.com
- 2. AGENDA Who we Are What We Offer Who We Serve Our Clients Preparing for a Business Loan: Preparing, Lenders View, and Financial Hurdles 5Cs of Credit Our Process Our Commitment
- 4. WHAT油WE油OFFER $500油to油$250,000油for油business油loans油 Terms:油6油to油120油month油terms 7.25%油to油18%油fixed油rates No油prepayment油penalty Online油business油education Financial油&油business油management油consultations
- 5. OUR油VALUE We油fund油STARTUPS LOWER油RATES油than油credit油cards油and油payday油lenders We油work油with油LOWER油CREDIT油SCORES We油have油a油20油year油PROVEN track油record油of油working油with油small油 business油clients We油are油FLEXIBLE on油collateral油requirements We油connect油clients油to油OTHER油SMALL油BUSINESS油RESOURCES油available油 in油our油community We油have油ONLINE Business油Resources
- 6. OUR油CLIENTS Our clients reflect the diverse communities we serve
- 8. We油ask油 How油will油the油loan油be油paid油back? From油the油business油or油personal油income? What油will油secure油the油loan? Unsecured油lending油is油practically油extinct! What油is油the油risk? Will油the油business油succeed? Are油you油a油good油Borrower?油 What油is油your油contribution? Would you Lend to Yourself?
- 11. Credit油Score油Factors Payment油History Length油of油Credit油History New油Accounts油That油Have油Been油Opened Number油of油Recent油Credit油Checks How油Many油Accounts油You油Have油in油Use *Low油Credit油will油not油prevent油you油from油accessing油capital,油but油 potentially油could油cost油more油in油the油form油of油higher油interest油rates.油 Character油(Credit)
- 13. This油is油the油borrowers油debt油divided油by油the油 borrowers油income.油 Personal油DTI油or油 Debt油to油Income油 Ratio Total油Capacity油(personal油surplus油and油 business油surplus)油divided油by油proposed油debt Global油Debt油 Coverage油Ratio Comparison油of油historical油trends油to油predict油 future油trends.油Based油on油gross油income,油costs,油 and油profit/loss.油 Cash油Flow油Trends Cash油Flow油Indicators Capacity
- 14. How油does油a油lender油measure油Capacity? Existing油 Business Tax油Returns油 (personal油and油 business) (P&B)Bank油 Statements Profit油and油 Loss油Statement Business/油 Expansion油Plan Start油up油 Business Personal油Tax油 Returns Bank油 Statements Projections Business油Plan Lease油 agreement Capacity
- 17. Types油of油Collateral Tangible油Business油Assets To油be油Purchased油Business油Assets油(With油Loan油 Proceeds) Vehicles Real油Estate Contracts Stocks油&油Bonds Cash油 Cash油Value油on油a油Life油Insurance油Policy Collateral
- 19. Still油Need油Help?
- 20. WE油HAVE油RESOURCESONLINE Take油our油Index油to油know油where油you油are Visit油our油online油library油that油has: business油plan油templates油 startup油budget油 our油loan油application油budgets projections油 personal油financial油statement Visit油our油blog Visit油us油on油Facebook油for油tips油and油articles Visit油our油website,油we油have油live油chat油and油a油 businesscenter@liftfund.org email油so油a油team油member油can油 support油you.
- 21. DETERMINE油WHAT油THE油LOAN油IS油FOR What Type of Funding Do You Need? Be Specific! Equipment Working Capital Start Up Expansion Inventory Asset Purchases Improvements What Is Your Contribution? Business loans are leveraged with equity and owners capital. Be prepared to put your own money into your business.
- 22. PREPARE油YOURSELF Know油how油much油you油need油 Personal油and油business油tax油returns油(23油years) Current油business油and油personal油financial油statements Bank油statements油(3油months)油油 Review油your油credit油report油 (www.annualcreditreport.com) DBA油or油Corporation油Documents Business油plan油with油financial油projections
- 23. STARTUPS油ARE油SPECIAL 1020%油Personal油Investment Business油Plan油&油Financial油Projections Secondary油Source油of油Income* *if油not,油we油do油have油special油loan油programs
- 24. FINANCIAL油HURDLES In油order油to油better油serve油you,油its油important油that油 you油know油the油status油of油the油following油issues:油 Bankruptcies Writeoffs油and油collections油issues Recent油Slow油payments Civil油judgments油and油tax油liens Taxes油owed油(state油and油federal) We油may油not油be油able油to油provide油capital油at油this油time油 due油to油your油capacity,油but油well油connect油you油to油 resources油to油get油your油financials油in油order.
- 25. Like Us on Facebook and Follow Us on Twitter Thank油You! LiftFund.com Houston@liftfund.com 888.215.2373