guidant webinar2011 3 7 (1)

Small Biz & Franchise FinancingStrategies that work in today’s economy

Your Hosts

Chris Hill214.440.3932

chill@esourcecoach..com

Gary Gerhold309.282.6186

ggerhold@esourcecoach.com

Jim Love806.418.2669

jlove@esourcecoach.com

Bob Melberth941.487.7147

rmelberth@esourcecoach.com

Susan Mell813.862.0218

samell@esourcecoach.com

Dante Vespignani412.916.9919

dvespignani@esourcecoach.com

Mike Clausen760.230.8406

mclausen@esourcecoach.com

Doug SmithDirector of Business Development

Agenda

1. Debt-related financing2. Equity-based funding3. Layering financing strategies4. Comparing the costs5. Q&A

Small Business Financing

1. Home Equity2. SBA Loans3. Equipment Financing4. Unsecured Loans

SBA Loans

SBA’s purposeTerms

Up to 10 yrs, fully amortized2.25-2.75 pts over prime

$5,000,000 limit32 determining factors

Cash, Credit and Collateral

SBA Loan Consideration

Eligibility RequirementsVariable ratesCollateral requirementsAmortization scheduleTiming

Equipment Financing

80% of companies leaseIndustry applicationEligibility requirementsFix rates and paymentsCollateral requirementsTiming

Unsecured Loan

Signature Loan vs. Line of CreditUp to 100k for new businessesNo collateral requiredFunding in less than 45 daysStringent eligibility requirements

Unsecured Loan Considerations

Beware of Internet BrokersFees up to 10% of loanDo you need subsequent funding

Equity-Based Funding

401(k) Small Business InvestingDebt-free investingUp to 100% of your IRA/401(k)Ongoing employee benefitsUse as equity injection for a loan

Created in 4-Simple Steps

1. New corporation formed2. Specific 401(k) created3. Roll/all/part of retirement assets4. 401(k) invests in business’s stock5. Employees make ongoing

contributions

Structural Requirements

1. C Corporation2. Qualified Plan3. Operating Company4. Exclusive Benefit

Operational Requirements

1. Must be employee2. Stock purchased at FMV3. Paid reasonable compensation

once an operating company4. Contribute to the plan5. No discrimination

401(k) Considerations

1. The type of entity2. Potential for loss3. Fees: Set-up and administration4. Reduce business debt5. Grow your retirement funds6. Outside tax/legal team must support

Choosing a Provider

1. Highly experienced team2. Staff to support clients3. Services provided in-house4. Great value5. Stand behind their program

Cost of Capital - $100,000

AssumptionsHELOC – 20yr @ 7%SBA – 10yr @8%Unsecured – 5yr @ 11%P2P – 3yr @ 14%401(k) – no payments$-

$20,000 $40,000 $60,000 $80,000

$100,000 $120,000 $140,000 $160,000 $180,000 $200,000

Payments

Set Up

Monthly Payments - $100,000

AssumptionsHELOC – 20yr @ 7%SBA – 10yr @8%Unsecured – 5yr @ 11%P2P – 3yr @ 14%401(k) – no payments

Get Pre-Approved

1. Talk with a professional2. Entertain each option3. Don’t waste time with

concepts you cannot buy

Questions & Answers

Get Started Today

Doug SmithDirector of Business Development425.289.3210888.472.4455 ext. 3210doug@guidantfinancial.comguidantfinancial.comhttp://successstories.guidantfinancial.com

Your Hosts

Chris Hill214.440.3932

chill@esourcecoach..com

Gary Gerhold309.282.6186

ggerhold@esourcecoach.com

Jim Love806.418.2669

jlove@esourcecoach.com

Bob Melberth941.487.7147

rmelberth@esourcecoach.com

Susan Mell813.862.0218

samell@esourcecoach.com

Dante Vespignani412.916.9919

dvespignani@esourcecoach.com

Mike Clausen760.230.8406

mclausen@esourcecoach.com