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
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
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
Find a Trusted Advisor
HOW EASY WILL IT BE TO GET MONEY TO START MY BUSINESS?
How Are My Chances?
Try, Try Again
Option 1 Credit Based Only Funding (No Doc)
QUALIFYING FOR START UP FUNDING
Option 2 Credit Based and Personal Income Based
TYPES OF FUNDING
STARTUP FUNDING OPTION 1: STARTUP BUSINESS CREDIT CARDS
► Credit Based Only (No Documentation Needed)
► Revolving ► Unsecured ► Startup Business Credit Cards No Doc Funding Program
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
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
WHICH OPTION IS RIGHT FOR YOU?
Line of Credit (LOC)
Requirements Range of Amount Received Interest Rate Range Term of funding
Repayment Frequency Timing
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?
Line of Credit
Which product is right for you?
Complete short form to determine eligibility
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