This document discusses various small business and franchise financing strategies. It outlines options for debt financing like SBA loans, equipment financing, and unsecured loans. It also discusses equity-based funding options like using 401(k) retirement funds to invest in a small business. The document compares the costs of different financing options and provides considerations and requirements for each. It emphasizes getting pre-approved for financing and choosing an experienced provider to support the process.

1. Small Biz &
Franchise Financing
Strategies that work in today’s economy

2. Mike Clausen Chris Hill Gary Gerhold Jim Love
760.230.8406 214.440.3932 309.282.6186 806.418.2669
mclausen@esourcecoach. chill@esourcecoach. ggerhold@esourcecoach. jlove@esourcecoach
com .com com .com
Your Hosts
Dante Vespignani
Bob Melberth 412.916.9919
941.487.7147 Susan Mell dvespignani@esourcecoach
rmelberth@esourcecoach 813.862.0218 .com
.com samell@esourcecoach
.com

3. Doug Smith
Director of
Business
Development

4. Agenda
1. Debt-related financing
2. Equity-based funding
3. Layering financing strategies
4. Comparing the costs
5. Q&A

5. Small Business Financing
1. Home Equity
2. SBA Loans
3. Equipment Financing
4. Unsecured Loans

6. SBA Loans
SBA’s purpose
Terms
Up to 10 yrs, fully amortized
2.25-2.75 pts over prime
$5,000,000 limit
32 determining factors
Cash, Credit and Collateral

7. SBA Loan Consideration
Eligibility
Requirements
Variable rates
Collateral
requirements
Amortization schedule
Timing

8. Equipment Financing
80% of companies lease
Industry application
Eligibility requirements
Fix rates and payments
Collateral requirements
Timing

9. Unsecured Loan
Signature Loan vs. Line of Credit
Up to 100k for new businesses
No collateral required
Funding in less than 45 days
Stringent eligibility requirements

10. Unsecured Loan Considerations
Beware of Internet Brokers
Fees up to 10% of loan
Do you need subsequent funding

11. Equity-Based Funding
401(k) Small Business Investing
Debt-free investing
Up to 100% of your IRA/401(k)
Ongoing employee benefits
Use as equity injection for a loan

12. Created in 4-Simple Steps
1. New corporation formed
2. Specific 401(k) created
3. Roll/all/part of retirement assets
4. 401(k) invests in business’s stock
5. Employees make ongoing
contributions

13. Structural Requirements
1. C Corporation
2. Qualified Plan
3. Operating Company
4. Exclusive Benefit

14. Operational Requirements
1. Must be employee
2. Stock purchased at FMV
3. Paid reasonable compensation
once an operating company
4. Contribute to the plan
5. No discrimination

15. 401(k) Considerations
1. The type of entity
2. Potential for loss
3. Fees: Set-up and administration
4. Reduce business debt
5. Grow your retirement funds
6. Outside tax/legal team must support

16. Choosing a Provider
1. Highly experienced team
2. Staff to support clients
3. Services provided in-house
4. Great value
5. Stand behind their program

17. Cost of Capital - $100,000
$200,000 Assumptions
$180,000
$160,000 HELOC – 20yr @ 7%
$140,000
$120,000 SBA – 10yr @8%
$100,000
$80,000 Unsecured – 5yr @ 11%
$60,000
$40,000 P2P – 3yr @ 14%
$20,000
$- 401(k) – no payments
Payments
Set Up

18. Monthly Payments - $100,000
Assumptions
HELOC – 20yr @ 7%
SBA – 10yr @8%
Unsecured – 5yr @ 11%
P2P – 3yr @ 14%
401(k) – no payments

19. Get Pre-Approved
1. Talk with a professional
2. Entertain each option
3. Don’t waste time with
concepts you cannot buy

20. Questions & Answers

21. Get Started Today
Doug Smith
Director of Business Development
425.289.3210
888.472.4455 ext. 3210
doug@guidantfinancial.com
guidantfinancial.com
http://successstories.guidantfinancial.com

22. Mike Clausen Chris Hill Gary Gerhold Jim Love
760.230.8406 214.440.3932 309.282.6186 806.418.2669
mclausen@esourcecoach. chill@esourcecoach. ggerhold@esourcecoach. jlove@esourcecoach
com .com com .com
Your Hosts
Dante Vespignani
Bob Melberth 412.916.9919
941.487.7147 dvespignani@esourcecoach
rmelberth@esourcecoach Susan Mell .com
.com 813.862.0218
samell@esourcecoach
.com