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Green Cash for Green Business

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Are you a small green business in search of financing? ...

Are you a small green business in search of financing?

Are you a small business with green principles and need working capital?

Are you a small business that wants to invest in energy efficient equipment or upgrades?

Are you tired of using your credit card and personal savings because the banks aren’t lending?

Look no further. ACCION USA is a national nonprofit leader in microfinance, lending to the smallest of businesses that have trouble obtaining bank loans. Green America partnered with ACCION USA to bring you an exclusive look into ACCION USA’s green loan process and the opportunity to ask your questions directly to an ACCION USA loan consultant.

What will you take away from this webinar?

* The definition and benefit of an ACCION USA Green loan
* Specific credit, financial and collateral requirements for loans up to $50,000
* Loan rates, fees and terms
* Training and educational benefits
* Direct connection with an ACCION USA loan consultant

Green Cash for Green Business gives you access to the expertise of Renzo Mendoza-Castro.

Renzo Mendoza-Castro is a National Loan Consultant at ACCION USA. Mendoza-Castro is responsible for business development and providing capital to small business owners nationwide. In addition to promoting traditional business loan products, Mendoza-Castro is leading ACCION USA's Green Business Initiative in New England.

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  • Keeping good business records is important to every business. Keeping good business records allows you to understand the Where? What? And When? of your business Where are my primary expenses? What do I sell the most of? When do I sell the most of it? Where are my primary Expenses? Keeping track of your expenses is critical to every business. It allows you to better understand where your major costs are AND allows you better understand if you can influence them in the short term or the long term (We will be discussing this in more detailed later in the presentation, i.e. Fixed Expense and Variable Expense.) What do I sell the most of? Keeping track of your revenue is also key. When you track what you sell, you are better able to see trends develop, which will then allow you to make better informed decisions about your products or services. When do I sell the most of it? Understanding how seasonality impacts your business is critical. Almost every business is impacted by it. Understanding how it applies to your business will allow you to implement strategies to maximize your high season and get your through the low period.
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Green Cash for Green Business Green Cash for Green Business Presentation Transcript

  •  
  • The Green Business Network
    • Our mission is to work with businesses everywhere to grow a green economy that’s good for people and the planet.
    • We are a vibrant community
    • of over 4,000 businesses committed to creating
    • a better world.
  • Green America’s Green Business & Green Economy Programs: Green Business Network Business Seal Of Approval National Green Pages Green Festivals Green America Exchange Green Business Conferences Business Advertising Guides Consumer and Investor Outreach Corporate Responsibility Programs
    • Introducing your latest GBN membership benefit, the Green America Exchange
    • The Exchange will help you …
    • Generate new business
    • Promote repeat business
    • Sell excess inventory
    • Reduce cash expenditures
    • Visit us online to activate
    • your free, pre-approved
    • Basic Account today.
    • Email to inquire about the
    • Premium Account with
    • an interest-free credit line
    Now available: B2B trading
  • Green Business Network Membership Opportunities
      • There’s a place for everyone
      • on the green journey.
      • Associate Members
      • An incubator for companies just starting and just
      • starting to go green.
      • Approved Members
      • A space for established green companies
      • to access Green America’s consumer and business audiences.
      • Green Economy Allies
      • A dedicated category for nonprofits, educational
      • institutions, and peer certification programs.
  • More Information 1612 K St., NW, Suite 600 Washington, D.C. 20006 Desireé Wolford Sr. Manager Membership and Marketing 202-872-5330 www.GreenBusinessNetwork.org www.facebook.com/greenbusinessnetwork www.twitter.com/greenbizconf
  • ACCION USA: “Green Cash for Green Businesses” November 15 th , 2010 Co-hosted by Green America
  • What is ACCION USA? At ACCION USA, we are committed to serving low- and moderate-income communities by providing access to business financing and counseling. Our focus is on microentrepreneurs, often minorities and women, who build businesses, provide jobs, create assets for themselves and their families and contribute to the development of their communities.
  • Agenda: Total Time 1 hour
    • We have an allotted time for questions at the end of the presentation, but feel free to “raise your hand” and ask a question at any time.
    • Financing Your Business 101 (25 mins)
    • ACCION USA’s Loan Products (15 mins)
    • ACCION USA’s Loan Guidelines (15 mins)
    • Questions (15 mins)
    • Special Offer Referral Code:
    • ACCION USA will waive your loan application fee, but you must have the Referral code to qualify.
    • Financing Your Business 101
  • What do lenders look for?
    • Your ability to pay back!
    • Credit History
    • Business Plan
    • Business Financials
  • What do lenders look for?
    • 5 C’s
    • Capacity to repay
    • Capital: equity and liability
    • Collateral to securitize loans
    • Conditions to define the why and where? (Green)
    • Character of you: the borrower (Green)
  • Game Plan: Obtain Capital
    • Build/Repair your personal credit
    • Prepare a detailed and coherent business plan
    • Prepare your financial statements for existing businesses / create realistic projections for start-ups
  • How to Get your Credit Report?
    • Contact all 3 Credit Reporting Agencies:
      • TransUnion : 1-800-888-4213 or visit www.transunion.com
      • Experian : 1-888-397-3742 or visit www.experian.com
      • Equifax : 1-800-685-1111 or visit www.equifax.com
    • You can request one free credit report per year at:
    • www.annualcreditreport.com
    • or by phone at 1-877-322-8228
  • What is a Credit Score?
    • A number that lenders use to predict how you will use credit in the future (350-850).
    • Credit scores take into consideration:
    New Credit Amounts owed Types of Credit Used Length of Credit History Payment History 10% 35% 30% 10% 15%
    • Pay on time
    • Keep a healthy percentage of available credit
    • Diversify your trade lines
    • Keep copies of bills and statements
    • Pay credit cards down one by one
    • Be proactive in calling your creditors
    Managing Credit Today: Key Strategies
  • Game Plan: Obtain Capital
    • Build/Repair your personal credit
    • Prepare a detailed and coherent business plan
    • Prepare your financial statements for existing businesses or create realistic projections for start-up businesses
  • Writing a Business Plan
    • Most financial institutions require a written document that will substantiate your budget and financials.
    • Take time and make a thoughtful and realistic plan.
    • This is the time to demonstrate your industry knowledge and experience. (Green)
  • Your Business Plan
    • A strong business plan will define the following aspects of your business:
      • Product/ Service
      • Comparative advantage: What sets you apart? (Green)
      • Start-up Financing Options
      • Financial Calculations
      • Marketing Strategy (Green)
  • Game Plan: Obtain Capital
    • Build/Repair your personal credit
    • Prepare a detailed and coherent business plan
    • Prepare solid financial statements for existing businesses or create realistic projections for start-up businesses
  • Financial Documents
    • Income Statements (Profit and Loss)
    • Cash flow statements
    • Balance sheets
    • Taxes
    • Bank Statements
  • Things to Consider: Income Statements
    • Can your business afford the loan payments?
    • $ ales
    • (less) Cost of Sales
    • (less) Expenses
    • equals: Net Income
    • Is Net Income greater than 2x the loan payment?
  • Things to Consider: Bank Statements
    • Are deposits greater than withdrawals?
    • Are there Insufficient Funds Fees (NSFs)?
    • Are the balances declining or increasing over time?
    • What are the frequent expenses?
    • Cash Management is Key!
  • Keep GOOD Business Records
    • Understanding the 3 W’s of your business
      • Where are my primary expenses?
      • What do I sell?
      • When do I sell it?
    • ACCION USA’s Loan Products
  • ACCION USA Small Business Loan Products
    • Loan Amounts:
    • Established Businesses
      • 6 Months of Operations & Profitable
      • Loan Amount: up to $50,000*
    • Start-Up Businesses
      • 6 Months of Operations but Not Yet Profitable
      • Loan Amount: up to $30,000*
    • Transition Businesses
      • Business Purchase or Change of Location
      • Loan Amount: up to $30,000*
    • * The average ACCION USA loan size is $7,000
    • Business Installment Loans :
    • Interest rates: 8.99% – 15.99%
    • Terms up to 60 months (based on loan amount and purpose).
    • ACH Monthly Payments
    • 3-5% closing fee and $30 application fee if approved
    • No prepayment penalties
    Small Business Loan Product Specifics
  • Green Loan Program Options
      • Energy Efficiency Loans
      • Loans for “green” small biz and industries
      • Loans for “green” loan purposes and services
      • Access to “green” education and resources
  • What Qualifies as “Green”?
      • Investing in Energy / Water Efficiency Measures:
        • New Equipment (refrigerators, ovens)
        • Facilities upgrades (fluorescent / LED lighting, heating / water system upgrades, other small appliance upgrades)
      • Providing Green Services:
        • Services or industries that are “green” in nature (weatherization, eco-tourism, alternative transportation)
      • Offering / Using Green Products:
        • Organic/sustainable forestry/local products
        • Recycled materials
        • Alternative Energy-related products (biodiesel, solar panels)
  • Green Loan Product - Benefits
      • Finance the upfront or “gap” costs of going green
      • Participate in government incentives, rebates & credits
      • Strengthen the application with an energy audit
      • Support navigating the energy audit process
      • Access to free training and educational resources
      • Lower rates in NY/MA for all green loans
  • Energy Efficiency Loan Benefits How Green ? We add cost savings to the applicant’s monthly income, improving their cash flow and their chances of getting approved. Avg F&B Loan $9,036 Avg Mthly Utility Bill $753 Avg Mthly Savings $103 (14%) With an Energy Audit … Term of Loan Potential Loan Increase 12 $1,239 18 $1,858 24 $2,478 30 $3,097 36 $3,717 42 $4,336
  • Green Resource Center
    • ACCION USA will create an online ‘ Green Entrepreneur Resource Center ’ to which you can refer your clients for green information!
    • What incentives and/or rebates exist for small businesses trying to ‘go green’?
    • Should I get a certification for my green business?
    • How can I market my commitment to sustainability as it relates to my business operations?
    Green TA
    • ACCION USA’s Loan Guidelines
  • ACCION USA Prequalification Questions
    • Credit Score over 575
    • No more than $3,000 past due
    • No Bankruptcy in the last year
    • No Foreclosure in the last 2 years
    • No late payments on mortgage and rent in the last year
    • Mortgage Qualifiers
    • Ineligible industries
    • Start Up Requirements
  • Start Up and Transition Loan Requirements
    • 6 or more months in operation
    • Financially independent co-signer, not with business
    • 2 nd source of income from client or household member
    • A market study and 12-months of financial projections
    • Technical expertise and commitment to the business
    • All required licenses and permits
  • Basic Documentation
    • ACCION USA relies on documentation to verify strengths.
    • 2 Forms of ID (one government issued)
    • 3 Months of Personal Bank Statements
    • 3 Months of Business Bank Statements.
    • All necessary permits and licenses
    • Most recent utility bill from home residence and business
    • Detailed description of how loan will be used
  • Additional Documents
    • The following depends on the condition and size of the loan and the status of the business:
    • Mortgage Note or Business Lease if applicable
    • Personal and Business Tax Returns
    • Financial Statements: Profit & Loss and Balance Sheet
    • Co-borrower Application if applicable
    • Documents to verify other strengths
  • AUSA Loan Application Process Client receives ACCION USA loan Information Client Applies Online or fills out paper application. AUSA acknowledges receipt w/in 48 hours AUSA contacts client regarding application to offer loan amount range, Interest rate, and request documents Application submitted for Underwriting Underwriter Approves or Declines ACCION sends disbursement Documents via secure e-mail to client Once ALL DOCUMENTS are submitted process takes 5 – 10 business days Client submits documentation via fax or email and gets Interviewed by Loan Officer. This is often the most difficult and time consuming stage. Prequal
    • Before we open up to questions …
  • SPECIAL OFFER – a $30 Value just for you!
    • ACCION USA is waiving the loan application fee especially for all Green America “Green Cash for Green Businesses” webinar participants.
    • When you apply online, enter “Green Webinar” in the Referral Name field and be sure to mention the promotion to the loan consultant you work with.
    • You must apply by Monday November 22 nd, 2010 to qualify for this offer.
  • Thank you! Questions?
    • Check out our online resources or apply for your loan over the web at www.accionusa.org
    • Enter “Green Webinar” in Online Application Referral Name Field to waive application fee – a $30 value!
    • Download the paper application from our website and indicate “Green Webinar” as the Referral Name .
    • Call ACCION directly and apply over the phone. Be sure to mention your “Green Webinar” Referral Name.
    • (866) 245-0783