This is my presentation at the Startup Junkie/Precipice IP/LenCred event called Funded. It was held on 10/4/2016 in Bentonville, AR.

1. Financing Demystified for
Entrepreneurs &
Investors
Bank & Non-Bank
Debt Financing

2. Two Biggest Challenges for SMB’s**:
Cash Flow
Cost of running the business2
1
*Resource “How the Economic Machine Works” by Ray Dalio: http://bit.ly/howeconomyworks
**According to 2015 Federal Reserve Study
Small Business 101
28,000,000 SMB’S in U.S.
Purpose of Leverage/Financing*
Failure Rate

3. Business Stages
From Les McKeown, Predictable Success

4. Financing Options

5. Financing Options

6. Two Choices
EquityDebt

7. Debt Financing
Borrowing money from a lender and
agreeing to pay back that money at
agreed-upon terms.
Loans * Lines of Credit
Cash advances * Factoring
Debt Financing:

8. Fun Fact: Acc. to SBA small businesses spend an average of 26 hours searching
for and applying for credit (and are not always successful)
1
2
3
4
Character (aka credit)
Capacity
Capital
Collateral
The 4 C’s of Lending

9. • Trade/Vendor Financing Unknown %
• Credit Cards 60-80%
• Personal Savings 21%
Loans & Lines of Credit
The three Most Commonly used
forms of financing are…
Fun Fact: 63% of SMB’s hold some amount of debt
*Acc to Federal Reserve Study

10. • Equipment Financing
• Factoring/PO Financing*
• MCA/ACH Financing*
Loans & Lines of Credit
Other Common forms of Small
Business Debt Financing…
Fun Fact: 70% of SMB’s want financing under $250,000
*Technically not debt solutions

11. • ROBs – Rollover as Business Startup
• SBA Loans
Loans & Lines of Credit
Two more worth mentioning…
Fun Fact: 73% of companies over $10MM got fully funded
but only 37% of companies under $100k got fully funded

12. SBA Example
52,044 7(a) Loans
$19.19 Billion
$368,726 Ave Approval
63,000 7(a) Loans
$23.6 Billion
$374,603 Ave Approval
Source: SBA.gov release number 14-66 & 15-03
FY 2014:
FY 2015:
Live Oak Bank or Berkshire Bank?

13. Business Stages
From Les McKeown, Predictable Success

14. Conclusion
Your Stage?
Debt or Equity?
The 4 C’s –
what to do NOW?
Go For It!