SlideShare a Scribd company logo
Becoming Lend Ready for your New Business
Sandy Mark , Manager, Women’s Programs, SSFPA
What we know about
financing small
businesses
Owners LOVE their
product
Too Often:
Owners often DON’T
LOVE their business.
The importance of investing in
your own financial readiness:
Poor financial
decisions are among
the main reasons why
Canadian SMEs fail.
Financial Confidence
YOUR PERSONAL
CONFIDENCE
YOUR READINESS FOR
FINANCIAL ACTIVITY
BUILDING YOUR personal confidence
YOUR START-UP SWOT:
Strengths
Weaknesses
Opportunities
Threats
Your SWOT
Build your
confidence:
Tell the story of
your business
idea
The SPARK OF THE
REMARKABLE
Your business story:
Your HERO:
the customer
GOAL:
THE
OBSTACLE:
(market pain)
• You are the Problem Solver with
your product—how will you do it?
• The Moral of the Story: the
benefits your product provides
• TELL THE TRUTH
BUILDING Financial confidence: Set your
Business FINANCIAL Goal
Consider what you want to
achieve, and then commit to it.
This motivates you to turn your
vision of this future into reality.
Set a
S.M.A.R.T
Goal for your
business
 S – Specific (or Significant).
 M – Measurable (or Meaningful).
 A – Attainable (or Action-Oriented).
 R – Relevant (or Rewarding).
 T – Time-bound (or Trackable).
Building Confidence in your business acumen
Your credit record
Your personal and
business experience
(your resume!)
Your market research
including customer
feedback
Your ‘entrepreneurial
passion’
What do
Lenders look
for?
The 5 C’s
Credit History
Capacity (for repayment)
Collateral
Capital
Conditions
Credit: Lenders assess the risk of lending to you
• the TRACK RECORD you’ve established while managing credit and making
payments over time
• Your CREDIT RECORD will show all of these transactions from lenders who
have extended credit to you
• Your CREDIT SCORE serves as a risk indicator for the lender based on your
credit history. Generally, the higher the score, the lower the risk.
When it comes to financial
behaviors, such as budgeting or
applying for commercial credit
financial confidence is
more important than
financial knowledge for
both lenders and investors
Self-evaluation: How are you doing?
PERSONAL
CONFIDENCE RATING?
FINANCIAL
CONFIDENCE RATING?

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Lend-Ready-ppt.pptx

  • 1. Becoming Lend Ready for your New Business Sandy Mark , Manager, Women’s Programs, SSFPA
  • 2. What we know about financing small businesses Owners LOVE their product Too Often: Owners often DON’T LOVE their business.
  • 3. The importance of investing in your own financial readiness: Poor financial decisions are among the main reasons why Canadian SMEs fail.
  • 4. Financial Confidence YOUR PERSONAL CONFIDENCE YOUR READINESS FOR FINANCIAL ACTIVITY
  • 5. BUILDING YOUR personal confidence YOUR START-UP SWOT: Strengths Weaknesses Opportunities Threats
  • 7. Build your confidence: Tell the story of your business idea The SPARK OF THE REMARKABLE
  • 8. Your business story: Your HERO: the customer GOAL: THE OBSTACLE: (market pain) • You are the Problem Solver with your product—how will you do it? • The Moral of the Story: the benefits your product provides • TELL THE TRUTH
  • 9. BUILDING Financial confidence: Set your Business FINANCIAL Goal Consider what you want to achieve, and then commit to it. This motivates you to turn your vision of this future into reality.
  • 10. Set a S.M.A.R.T Goal for your business  S – Specific (or Significant).  M – Measurable (or Meaningful).  A – Attainable (or Action-Oriented).  R – Relevant (or Rewarding).  T – Time-bound (or Trackable).
  • 11. Building Confidence in your business acumen Your credit record Your personal and business experience (your resume!) Your market research including customer feedback Your ‘entrepreneurial passion’
  • 12. What do Lenders look for? The 5 C’s Credit History Capacity (for repayment) Collateral Capital Conditions
  • 13. Credit: Lenders assess the risk of lending to you • the TRACK RECORD you’ve established while managing credit and making payments over time • Your CREDIT RECORD will show all of these transactions from lenders who have extended credit to you • Your CREDIT SCORE serves as a risk indicator for the lender based on your credit history. Generally, the higher the score, the lower the risk.
  • 14.
  • 15. When it comes to financial behaviors, such as budgeting or applying for commercial credit financial confidence is more important than financial knowledge for both lenders and investors
  • 16. Self-evaluation: How are you doing? PERSONAL CONFIDENCE RATING? FINANCIAL CONFIDENCE RATING?