Small Business Banking Solutions
Mark McIntyre & Thomas Busby
What is my Banker Looking For?
Funding Request
requirements 5 year funding requirements Use of funds
Current
Working capital Capital expenditures
Long
range financial strategies
Public offerings Future merger / acquisition activity
Financials
financial data Forecasts / proforma
Historical
Five year projections Monthly / quarterly for initial year Subsequent years can be annual projections Projections should match funding requests
Appendix
history (personal and business) Resumes of key personnel Letters of reference Legal documents Building permits Business consultants
Credit
Keys To A Loan Approval
The 5 C’s of Credit
1)
2) 3)
4)
5)
Credit Capacity Collateral Character Conditions
Personal Credit Scores
Payment History Collections Number of Open Accounts Balances in Relation to Credit Limits Beacon Scores < 600 below average 600 to 650 average 651 to 700 above average > 700 excellent
Business Credit
Dun & Bradstreet
Trade Credit Law Suits Tax Liens
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
Alternative Solutions
Types of Financing
Factoring Asset-based lending Construction factoring Purchase order financing Equipment leasing
Standard
Potential Clients
“unbankable” by traditional underwriting Startup (new company) Bankruptcy Business owners with poor personal credit Tax Liens Limited profitability Negative Equity
Considered
Benefits to Businesses
cash flow Take early payment discounts Take advantage of new opportunities Places your company on a cash basis
Improve
How Do I Get Paid?
Baby Steps
your business checking account Register with CCR Checks, ACH, & Credit Card Payments
Open
Other Considerations
Information Managing Cash Managing Time (Online Banking, EDI, Direct Deposit, etc.)
Managing
Questions?
Contact Information
Mark McIntyre – VP Commercial Lending (256) 288-5174 markmcintyre@fcb-hsv.com Thomas Busby – VP Cash Management (256) 551-3363 thomasbusby@fcb-hsv.com