As a Business Owner, you realize that you need funding to Start, Run or Grow your Business! What steps should you take to prepare in order for you to receive the best terms?

1. By Alana Diaz Sutton
So You Think You Need
A Business Loan?

2. About The Sutton Connection
• Created in November 2008.
• Registered in Maryland.
• Facilitate the economic growth of businesses
by keeping businesses in business!

3. What are we going to cover?
 Preparing for Financing
 Different Types of Financing Available

5. Lenders and Investors are looking for
Loan Purpose
• How will the money will be used?
• Important to be specific & descriptive
• Working Capital
• Growth Capital

6. Lenders and Investors are looking for
Loan Amount
• Its not about how much you can borrow.
• Borrow only what you need.
• 100% financing is not an option.

7. Lenders and Investors are looking for
Loan Repayment & Collateral
• Solid cash flow sufficient to repay the loan.
• Do you have sufficient assets?
• Do you have financial reserves?
• Do you have personal collateral to endure
business fluctuations (and still pay off your loan)

8. Lenders and Investors are looking for
Personal Guaranty
• Even if your business is incorporated
• Personal financial statement

9. Lenders and Investors are looking for

10. Step Back & Prepare
 Solid business plan,
 Good personal and business credit,
 Expert help.

11. Step Back & Prepare
Business Plan
SBA – Tool to create a business plan
Loan Request – amount, purpose, repayment etc.
Narrative explaining positive effects loan will have
on the business.
Your Contribution – Owner’s Investment
Complete & Realistic Financial Projections

12. Step Back & Prepare
Financial Statements
 Cash Flow Statement – Incoming cash & expenses.
 Income Statement – Revenue-Expenses=P&L
 Balance Sheet – Assets-Liabilities=Net Worth
 Personal Financial Statement – Personal Net Worth

13. Step Back & Prepare
 Review your Credit Report once a year
 https://www.annualcreditreport.com
 Clean Up Your Credit
• Business credit is an asset
• Financial foundation of a company.
• Personal Guaranty

14. Step Back & Prepare
Build Business Credit
 Incorporate your business and obtain
a Federal Tax Identification number.
 Register with the business credit
bureaus like Dun and Bradstreet.
 Open a Business Checking Account.

15. Make sure the following are up-to-date:
Corporate records,
Secretary of State filings
Required business licenses
Company’s phone number listed in the
411 directory
Step Back & Prepare

16. Step Back & Prepare
Loan Packaging Tips
 Easy to read.
 Emphasize Management Strength.
 Plan - This is how you will get your money back.
 Proofread!

17. 3 C’s of Credit in Making Loan Decisions
1. Character – Personal Credit History.
2. Capacity – Sufficient Cash Flow to payoff loan.
3. Collateral – Back-up plan to repay loan.

18. Step Back & Prepare
Consult an Expert
 SCORE (a mentoring organization for small businesses)
 Small Business Development Centers
 Small Business and Entrepreneurship Center (SPCC)
 Small Business Development Training Network
 Women’s Business Centers
 Accountant

19. Types of Financing Programs
Available
http://charlottebusinessresources.com/financing-a-business

20. Types of Financing Programs Available
1. Charlotte’s Business Equity Loan Program
- Improve borrower cash-flow
- Provide flexible repayment terms
- Working capital and startup projects
- Provide easy loan approval process
- Consider business start-up financing

21. 2. Charlotte Facade and Security Grant Programs
‒ provide matching funds for storefront
architectural renovations
‒ Security improvements to eligible commercial
buildings in targeted areas
Types of Financing Programs Available

22. Types of Financing Programs Available
3. Self Help Credit Union
‐ Provide SBA loan guaranty financing
‐ Utilize the Charlotte Community Loan
Fund for term business loans
‐ Provide fixed asset financing
‐ Help with small loan requests
‐ Consider start-up loan requests

23. Types of Financing Programs Available
4. Charlotte Community Capital Fund
5. SBA 504 Loan Program – Real Estate
6. Centralina Regional Revolving Loan Fund
7. The Support Center
8. Green Micro Loan
9. Energy Retrofit Loan Fund
10. Charlotte-Mecklenburg Business Investment Program

24. Alternative Financing

25. Five major types of available Alternative Financing
options:
1. Equipment Financing
2. Merchant Cash Advances
3. Cash Flow Loans
4. Retirement Plan Business Funding
5. Medical Accounts Receivable Financing

26. Five major types of available Alternative Financing
options:
1. Equipment Financing
2. Merchant Cash Advances
3. Cash Flow Loans
4. Retirement Plan Business Funding
5. Medical Accounts Receivable Financing

27. Advantages of Equipment Financing:
 Conserves working capital – Monthly payments vs. outright
purchase cost.
 Provides 100% financing – Ability to bundle any expense item
associated with equipment acquisition. E.g. shipping &handling,
installation, training, maintenance, taxes, etc.
 Provides tax advantages – Monthly payments are often fully tax
deductible as an operating expense.

28. Computers
Construction
Electrical
Convenience Stores
Industrial and Manufacturing
Material Handling Equipment
Medical Equipment
Office Equipment
Printing/Publishing
Telecommunications
Transportation
Vending
Restaurant Equipment
E.g. of Types of Equipment

29. Five major types of available Alternative Financing
options:
1. Equipment Financing
2. Merchant Cash Advances
3. Cash Flow Loans
4. Retirement Plan Business Funding
5. Medical Accounts Receivable Financing

30. Merchant Cash Advances
o Allow businesses to receive a cash infusion based on
future MasterCard and Visa sales.
o Starter programs available if been in business more than
3 months.
o Fixed percentage deducted at close of business day.

31. Benefits of Merchant Cash Advances:
 No fixed payment amount.
 Used for any business need.
 No personal collateral needed.

32. Five major types of available Alternative Financing
options:
1. Equipment Financing
2. Merchant Cash Advances
3. Cash Flow Loans
4. Retirement Plan Business Funding
5. Medical Accounts Receivable Financing

33. Cash Flow Loans:
• Loan amounts from $5000 - $100,000
• Existing businesses at least 1 year old.
• 6 months,12 months or 18 months
• Daily fixed payments are deducted Monday – Friday
(except holidays).

34. Five major types of available Alternative Financing
options:
1. Equipment Financing
2. Merchant Cash Advances
3. Cash Flow Loans
4. Retirement Plan Business Funding
5. Medical Accounts Receivable Financing

35. Retirement Plan Business Funding:
• You invest your retirement funds in your business –
without taxes or penalties.
• Applies to New and Existing businesses.
• Could be used to invest in Real Estate.

36. Five major types of available Alternative Financing
options:
1. Equipment Financing
2. Merchant Cash Advances
3. Cash Flow Loans
4. Retirement Plan Business Funding
5. Medical Accounts Receivable Financing

37. Medical Accounts Receivable Financing:
• Improves cash flow
• Does not require changes in your back office operation.
• Provides you with a steady and predictable source of
funds.
• No restrictions on your use of funds.

38. Questions?
Questions?

39. Contact Us
Phone: (888) 327-2313 or (704) 821-6787
Web site: www.TheSuttonConnection.com
Email: Alana.Sutton@TheSuttonConnection.com