GUIDE TO STARTUP FUNDING Let’s Explore Options for Working Capital
By Quincy Lewis
Congratulations! Starting a business is no small feat, but the fastest way to success is to bet on yourself! 1. Become your biggest fan 2. Know that success is the only option 3. Understand your vision 4.Know your limitations and ask for help when needed 5. Make it happen and keep going!
BET ON YOURSELF
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LET IT FLOW
The number one reason
small businesses fail is lack of capital.
Cash Flow (Capital) is needed to:
Keep up day to day operations
Grow your business
Fund new ideas
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ACQUIRING WORKING CAPITAL Most businesses, both big and small, need short term working capital at some point in their operations, cash reserves are often not enough
Determine Your Need
Plan Ahead
Find a Trusted Advisor
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HOW EASY WILL IT BE TO GET MONEY TO START MY BUSINESS?
Preparation
Timing
Funding Mix
How Are My Chances?
Potential Obstacles
Try, Try Again
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Option 1 Credit Based Only Funding (No Doc)
QUALIFYING FOR START UP FUNDING
Option 2 Credit Based and Personal Income Based
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TYPES OF FUNDING
Revolving Credit
Term loans
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STARTUP FUNDING OPTION 1: STARTUP BUSINESS CREDIT CARDS
► Credit Based Only (No Documentation Needed)
► Revolving ► Unsecured ► Startup Business Credit Cards No Doc Funding Program
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STARTUP FUNDING OPTION 2: PERSONAL TERM LOAN FOR START UPS
What you get: • $15,000 to $300,000 in combined loans • 1-3 Installment loans in total • Interest rates are in the 5-15% range • Repayment are 2-7yrs • No collateral • No upfront fees • Full liquidity immediately • Funding 7-15 business days
Requirements: • Verifiable Income Program (W2 and Paystubs)
► Credit and Personal Income Based (Verification)
• Minimum 730 credit scores in all 3 bureaus • 2 years personal tax returns • $50,000 or more of taxable income • Funding takes 7-15 Business Days
► Installment ► Unsecured
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STARTUP FUNDING OPTION 3: PERSONAL LINES OF CREDIT (NOT A CREDIT CARD) • Ability to draw large sums of cash (No cash advance fees) • $25,000 to $300,000 in combined credit limits • 3-6 personal lines of credit in total • Interest rates are in 7-15%
• Flexible minimum monthly payment 2 1/2- 5% (a little higher than credit) • No collateral • Minimum FICO 700 • Personal monthly gross of $3K • Must be able to verify personal income (W2, paystubs, etc.) • Rental income via bank statements accepted • No excessive inquiries
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WHICH OPTION IS RIGHT FOR YOU?
Credit Card
Term Loan
Line of Credit (LOC)
Requirements Range of Amount Received Interest Rate Range Term of funding
Repayment Frequency Timing
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THINGS TO CONSIDER ► Is my personal credit score impacted by business loans? ► How does funding ultimately impact my business cash flow: • Can I afford the regular payments? (monthly, periodically, etc.) • Can payment amounts increase/ decrease over time? • What if I can’t make my payments on time?
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NEXT STEPS
Credit Cards
Apply
Term Loan
Line of Credit
Which product is right for you?
Complete short form to determine eligibility
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