alternatives to traditional finance for start-upsfiles.meetup.com/7176182/aiea presentation...
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www.BFS-USA.com
Alternatives to Traditional Finance for Start-ups
Sam Thacker 512-990-8756
www.BFS-USA.com
Our Team
• 39 years of combined commercial banking
• BFS works with B2B companies*
• Offices in Austin and Saint Louis
• Customized solutions
*B2C – equipment finance also Francoise
Luca
Sam Thacker
Carol
Crangle
www.BFS-USA.com
Goals of Presentation
1. Leave here tonight with three ideas that you can immediately use in your venture.
2. Understand the importance of building a company around your product or idea.
3. Learn about some non-traditional financing techniques.
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Basic Tips
• Think enterprise, not just product
• Single product companies higher risk
• “Piggypack” products high risk
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“Virtual” Companies
• Easy to scale
• Contract manufacturers
• Third party logistics
• Not traditional bank customers
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Critical Enterprise Components
Component of Enterprise Value
Management 25%
Market need for product / service 25%
Solution to market need 25%
ROI, making profits 25%
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Financing Virtual Companies
• Microloans
• Purchase order financing
• Inventory financing
• Invoice factoring
Alternative Methods
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Microloans/non-banks
• Accion
• BCL of Texas
• BiGAustin
• PeopleFund
• Credit unions
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Purchase Order Financing
• Need Firm PO from creditworthy customer
• Needs to be at least $500,000
• PO finance company taken out at invoicing
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Inventory Financing
• Needs to be at least $250,000 of need
• Third party warehousing preferred
• Raw materials and finished goods
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Invoice Financing
• B2B - creditworthy customers
• Nearly unlimited size
• Start-ups okay
• “Cures” missed opportunity
• Seasonal, cyclical businesses
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Equity vs. Debt
Alternative financing methods often use ways to
leverage assets to avoid using more equity.
Every company needs enough equity to balance
their debt load.
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Questions???
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For more information
Sam Thacker 512-990-8756
Francoise Luca 512-646-1088
www.bfs-usa.com