Transcript Slide 1

Banks are Cash Flow and Collateral
Lenders Targeting
• Operating Companies
• MFG
• Distribution
• Service Companies
Types of Lending
• Working Capital (Revolving Lines of Credit)
• Term Loans (Real Estate and Equipment)
• Construction Lending
Collateral – Cash Flow – Character
• Accounts Receivable, Inventory, Equipment
• Real Estate, Marketable Securities, CVSLI
• Capacity to service debt (Debt Payments/Cash Flow)
• Sound Credit History
• Experienced Management
Typical Bank Requirements
• Equity (Retention of Earnings)
• Profitability, Allow the business to earn at least a
$1.00
• Personal Guaranty
• Additional Collateral
Government and Partnership Financing Programs
•
•
•
•
•
•
•
•
•
•
•
National Government Guaranteed Programs
Small Business Administration (SBA)
7a ($5,000,000)
Export Express (Limited to $500K)
Export Working Capital Program (EWCP)
International Trade Loan (ITL)
CAP Lines (Revolving $5,000,000)
Patriot Express ($500K focused on Veterans)
Express (Limited to $250K)
Small Loan Advantage ($350K)
504 CDC Real Estate Loans
Government and Partnership Financing Programs
• United States Department of Agriculture (USDA)
• Business & Industrial (B&I) (Real Estate and Equipment Census based)
• Community Facilities (for non-profits & towns/cities)-financing for
assisted home, hospitals, fire stations, etc…
• Rural Energy For America (REAP) Guaranteed Loan Program (9007)
• Export Import Bank of the U.S.
• Working Capital (2-Year term Revolving in Nature)
• Export oversea buyer financing programs of U.S. products (100%
guaranteed)
• State & Local (non-guaranteed)
• Arizona Commerce Authority (ACA)
• Industrial Development Authorities (IDA’s-various)
• EXPAND program (collateral assistance in Phoenix & Chandler)
• Phoenix Community Development & Investment Corporation (PCDIC)