financing your business. 1. it’s a business! 2. create a business plan that shows how you will pay...
Post on 19-Dec-2015
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TRANSCRIPT
Financing Your Business
1. It’s a business!
2. Create a business plan that shows how you will pay back the money
3. Leverage with collateral
THREE ESSENTIAL SECRETS to Funding Your Business
Know what type of funding you need Cash Flow Financing Debt Financing Equity Funding Import/Export Loans Inventory Loans Mezzanine Financing Private Placement Sale/Lease Back
Funding Turn Around Capital Acquisitions Funding
Bridge Loans Buy Out Financing Construction Loans. Equipment Leasing First Stage Funding Initial Public Offerings Long Term Loans Permanent Loan Real Estate Loans Seed Capital Start Up Capital
• Commercial Banks• Don’t require you turn over equity or company control• Need history and collateral• Smaller loans available using personal credit history
• Small Business Administration• No direct loans – guarantees 75% of loans• Business must show that it cannot obtain conventional
financing• Nonproft Microlender
• Easier underwriting criteria• High interest rates• May be required to do training
• Friends and family• Business investors• Credit cards• Home equity loan/line of credit• Factoring• Customer or Suppliers
LOCAL RESOURCES
SafeBid Co,Santa Rosa
Opportunity Fund, San Jose.. SF
OBDC, Oakland
SBDC, Concord
Count Me In
Keiretsu – Angel investors
Pacific Community Ventures
Train
ABOUT WOMEN’S INITIATIVE
100% low-income 83% women of color 25% have limited or no English language
proficiency 20% single parents 46% high school equivalency or less 41% of businesses are unbanked Average business liabilities is $14,706
CLIENT PROFILE
02468
101214
Business Status of Loan Recipients
Loan Recipients
BUSINESS STATUS
0%20%40%60%80%
100%
Auto Loan Credit Card
Education Family Loan
Other
Types of Client Debt
TYPE OF DEBT
$0
$10,000
$20,000
$30,000
$40,000
Auto Loan Credit Card
Education Family Loan
Other
Average Client Debt
AVERAGE AMOUNT OF DEBT
5 years after training, 70% of clients are running their own business
Clients’ personal incomes rise dramatically—from a monthly income of $1,185 prior to $2,079 one year after completion of Women’s Initiative program
Clients increase their average household net worth more than 300% within two years, from $12,968 before training to $53,572 after training.
RESULTS
GRADUATE SPOTLIGHT
Corinthia PeoplesCorinthia Peoples Designs
Leveraging:Loan IDA Matched Savings Program
