2018 SOAR AGENDA Very Simple Traditional Financing Alternative Financing Options and Solutions So Whats the funding for Lending 101 Purpose meets Term What are you asking for TermRevolvingFactoring ID: 737677
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Slide1
Financing for OEM/Supply Businesses
2018 SOAR Slide2
AGENDA… Very Simple!
Traditional Financing
Alternative Financing
Options and SolutionsSlide3
So What’s the funding for?
Lending 101.. Purpose meets Term
What are you asking for? (Term/Revolving/Factoring)Slide4
Understanding the Process!
Sources of Repayment (Primary/Secondary/Tertiary)
Borrower Background/History/Experience
Risk assessment/Loan Grading factors
Overall financial stability/strength of GuarantorsSlide5Slide6
All about the cash..
How do I know how much I need?
Financial Analysis
Tool to tell you..Slide7Slide8Slide9Slide10
Alternative Financing
Factoring
Reverse Factoring/Non-RecourseSlide11
So What are the Options?
Traditional Banks
Industry Specialized Lenders
(
Exostar
,
Taulia
, Prime Revenue)Slide12
SBA Loans
7a Guaranteed Loan Program
504 Fixed Asset Financing ProgramSlide13
SBA 7a Basics
Requires a lender
SBA provides a guarantee of up to 85% (depending on eligibility/loan size..)
Interest rate is typically floating, although can be negotiated..
Up to 25 year Amortization on Real Estate
Permanent Financing Structure, no balloon payment
SBA
CapLine
ProgramSlide14
SBA 504 Fixed Asset Financing
Is a “two loan” structure
Bank/lender provides first mortgage on the assets up to 50% of project costs
SBA lends in a second position, up to 40% of the project costs
Borrower provides remaining equity injection (could be in the form of other assets or R/E..)Slide15
Finally…
Build a plan to sell yourself:
Summary of your company/history if any..
What the money's for (if you need it..)
Your market strategy (target clients, market area, point of differentiation)
Financial plan (history and projections)Slide16
THANK YOU!
Josh Walton
Area Director
University of Georgia Small Business Development Center
Macon, GA
478 757 4790
jwalton@georgiasbdc.org