Growth Capitalized - Guide to Startup Funding

Growth Capitalized - Guide to Startup Funding

GUIDE TO STARTUP FUNDING Let’s Explore Options for Working Capital

By Quincy Lewis

Congratulations! Starting a business is no small feat, but the fastest way to success is to bet on yourself! 1. Become your biggest fan 2. Know that success is the only option 3. Understand your vision 4.Know your limitations and ask for help when needed 5. Make it happen and keep going!

BET ON YOURSELF

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LET IT FLOW

The number one reason

small businesses fail is lack of capital.

Cash Flow (Capital) is needed to:

Keep up day to day operations

Grow your business

Fund new ideas

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ACQUIRING WORKING CAPITAL Most businesses, both big and small, need short term working capital at some point in their operations, cash reserves are often not enough

Determine Your Need

Plan Ahead

Find a Trusted Advisor

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HOW EASY WILL IT BE TO GET MONEY TO START MY BUSINESS?

Preparation

Timing

Funding Mix

How Are My Chances?

Potential Obstacles

Try, Try Again

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Option 1 Credit Based Only Funding (No Doc)

QUALIFYING FOR START UP FUNDING

Option 2 Credit Based and Personal Income Based

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TYPES OF FUNDING

Revolving Credit

Term loans

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STARTUP FUNDING OPTION 1: STARTUP BUSINESS CREDIT CARDS

► Credit Based Only (No Documentation Needed)

► Revolving ► Unsecured ► Startup Business Credit Cards No Doc Funding Program

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STARTUP FUNDING OPTION 2: PERSONAL TERM LOAN FOR START UPS

What you get: • $15,000 to $300,000 in combined loans • 1-3 Installment loans in total • Interest rates are in the 5-15% range • Repayment are 2-7yrs • No collateral • No upfront fees • Full liquidity immediately • Funding 7-15 business days

Requirements: • Verifiable Income Program (W2 and Paystubs)

► Credit and Personal Income Based (Verification)

• Minimum 730 credit scores in all 3 bureaus • 2 years personal tax returns • $50,000 or more of taxable income • Funding takes 7-15 Business Days

► Installment ► Unsecured

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STARTUP FUNDING OPTION 3: PERSONAL LINES OF CREDIT (NOT A CREDIT CARD) • Ability to draw large sums of cash (No cash advance fees) • $25,000 to $300,000 in combined credit limits • 3-6 personal lines of credit in total • Interest rates are in 7-15%

• Flexible minimum monthly payment 2 1/2- 5% (a little higher than credit) • No collateral • Minimum FICO 700 • Personal monthly gross of $3K • Must be able to verify personal income (W2, paystubs, etc.) • Rental income via bank statements accepted • No excessive inquiries

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WHICH OPTION IS RIGHT FOR YOU?

Credit Card

Term Loan

Line of Credit (LOC)

Requirements Range of Amount Received Interest Rate Range Term of funding

Repayment Frequency Timing

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THINGS TO CONSIDER ► Is my personal credit score impacted by business loans? ► How does funding ultimately impact my business cash flow: • Can I afford the regular payments? (monthly, periodically, etc.) • Can payment amounts increase/ decrease over time? • What if I can’t make my payments on time?

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NEXT STEPS

Credit Cards

Apply

Term Loan

Line of Credit

Which product is right for you?

Complete short form to determine eligibility

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