Small Business Banking Solutions

1
Small Business Banking Solutions
Mark McIntyre Thomas Busby
2
What is my Banker Looking For?
3
Funding Request

• Current requirements
• 5 year funding requirements
• Use of funds
• Working capital
• Capital expenditures
• Long range financial strategies
• Public offerings
• Future merger / acquisition activity

4
Financials

• Historical financial data
• Forecasts / proforma
• Five year projections
• Monthly / quarterly for initial year
• Subsequent years can be annual projections
• Projections should match funding requests

5
Appendix

• Credit history (personal and business)
• Resumes of key personnel
• Letters of reference
• Legal documents
• Building permits
• Business consultants

6
Keys To A Loan Approval
7
The 5 Cs of Credit

• Credit
• Capacity
• Collateral
• Character
• Conditions

8
Personal Credit Scores

• Payment History
• Collections
• Number of Open Accounts
• Balances in Relation to Credit Limits
• Beacon Scores
• lt 600 below average
• 600 to 650 average
• 651 to 700 above average
• gt 700 excellent

9
Business Credit

• Dun Bradstreet
• Trade Credit
• Law Suits
• Tax Liens

10
Collateral

• Real Estate - Owner Occupied (85 LTV) Up to 20
  years
• Inventory - (50) Short term RLOC to 5 years
• Accounts Receivable - (80) Short term RLOC
• Equipment (60 80) Up to 5 years
• Home Equity (90 LTV) RLOC or up to 15 years
• Raw Land (65 LTV) Up to 15 years
• Real Estate Purchase Money (90 LTC / 80 LTV)
  Up to 20 years

11
Alternative Solutions
12
Types of Financing

• Standard Factoring
• Asset-based lending
• Construction factoring
• Purchase order financing
• Equipment leasing

13
Potential Clients

• Considered unbankable by traditional
  underwriting
• Startup (new company)
• Bankruptcy
• Business owners with poor personal credit
• Tax Liens
• Limited profitability
• Negative Equity

14
Benefits to Businesses

• Improve cash flow
• Take early payment discounts
• Take advantage of new opportunities
• Places your company on a cash basis

15
How Do I Get Paid?
16
Baby Steps

• Open your business checking account
• Register with CCR
• Checks, ACH, Credit Card Payments

17
Other Considerations

• Managing Information
• Managing Cash
• Managing Time
• (Online Banking, EDI, Direct Deposit, etc.)

18
Questions?
19
Contact Information

• Mark McIntyre VP Commercial Lending
• [phone]
• markmcintyre_at_fcb-hsv.com
• Thomas Busby VP Cash Management
• [phone]
• thomasbusby_at_fcb-hsv.com