How do I get Business Funding?
Everyday there are millions of business owners and aspiring startups that are looking to obtain funding. What happens when the business owner is not qualified but needs funding in order to start or scale their business?
That is where AJ comes into the discussion.
While working with some of the largest loan brokers in the United States, many clients do not understand the qualifications for funding.
Often, loan brokers, repair companies, and even funding companies turn away applicants due to their credit, cash flow, or lack of collateral.
AJ, who is actively serving in the United States Army Reserves, has conducted workshops with the SBA, Veteran Business Outreach Centers, and even the University of Syracuse, Institute of Veterans and Military Families, educated these aspiring business owners and those looking to expand their business on the qualification process. It comes down to being fundable.
Credit: Normally, lenders look for at least a 700+ Credit score; however, some lenders provide funding for as low as a 450 score. If a client's score is not fundable, the client must work on becoming fundable through credit repair.
Cashflow: Normally, lenders look for at least $10K/M in revenue. If a client does not generate at least $10K/M in revenue, our focus is to form a new business for the client and create income projections to show the capacity to take on the loan. We like to project the business to exceed 100K/M once funding is obtained.
Collateral: Normally, lenders are looking to have collateral for a loan. Especially when an applicant is looking to obtain an SBA loan, when a client does not have any collateral, we usually refer the client to work with Debt Sellers, LTD. to place assets on the balance sheet to become more qualified for funding. This is done by following Generally Accepted Accounting Principles (GAAP).
What is our Solution?
Our solution can assist you in getting qualified for funding with these financial products:
Lines of Credit
Unique Benefits
6-24 Month Terms Available
Weekly or monthly payments
Same-day funding up to 250K
True Revolving line
Equipment Financing
Unique Benefits
3-7 Year terms
Fixed rates start at 6%
Monthly Payments
Can be entirely written off as tax payments
SBA Loan
Unique Benefits
5-30 year terms
Government-backed funds
Refinance existing business debt
Can be entirely written off as tax payments
Real estate
Unique Benefits
40-year mortgage
Fix and flip
New Construction
Long short-term rental
Multi-family
Account Receivable Financing
Unique Benefits
Lowest cost
Longer terms
Larger amounts
Revolving line of Credit.
01
Write your business plan & obtain seed capital
Your business plan is the foundation of your business. It’s a roadmap for structuring, running, and growing your new business. Your business plan will help determine how much money you’ll need to start or grow your business (called “Use of Funds”). We’ll use it to convince lenders through solid financial projections to provide the capital you need to start, grow, and reach your potential. Seed capital is typically used to support the planning of a business up to the point when the company starts selling a product or service.
We’ll help you create a business plan and financial projections using the same advanced software used by SBA Advisors and, if desired, apply for seed capital for immediate funding.
02
Provide your official business location & entity filing
A unique business address is required for most types of business funding. Your business location is one of the most important decisions you’ll make as it impacts your access to geographic-specific stimulus funding. Your business becomes official once filed with the Secretary of State.
We’ll provide you with a unique business address and then file for the formation of your new business.
03
Collateralization
Lenders typically require borrowers to pledge collateral to mitigate their risk exposure in case of default.
We’ll provide you with $10,000 to strengthen your financial statements and pledge as collateral.
04
Loan Packaging & Funding Readiness
Organize and optimize your loan documents, including your balance sheet, profit and loss statement, etc., to improve your chances of approval.
We’ll help you assemble the standard documents needed for business loan approval.
Optional: Loan Application & Funding
Selecting the right lender based on your mitigating circumstances is crucial for loan approval.
Using our proprietary Lender Match AI technology, we will identify the lender and funding program most likely to result in approval with the best terms. We’ll help you apply for up to $5,000,000 in business funding.
SBA Readiness
Beyond credit history, another important thing that lenders consider while deciding whether to offer your business a loan is the amount of collateral that you have.
Collateral is an additional form of security that can assure a lender that you have a second source of loan repayment. Assets such as equipment, buildings, accounts receivable, and inventory are considered possible sources of repayment if they can be sold by the bank for cash. Collateral can consist of assets usable in the business as well as personal assets that remain outside the business.
You can assume that all assets financed with borrowed funds will be used as collateral for the loan. Depending on how much equity was contributed by you toward the acquisition of these assets, the lender may require other business assets as collateral.
Your home or personal assets may be considered collateral, based on one of the following criteria:
The lender requires the residence as collateral
The equity in the residence is substantial, and other credit factors or sources of collateral are weak
You operate the business out of the residence or other buildings located on the same parcel of land
In our Program we will use Account Receivables to be placed on your balance sheet. Please let us know what you plan to use as collateral on your balance sheet.
How do I get Business Funding?
You need to be qualified with the three C's: Credit, Cashflow, and Collateral. Our team is designed to help you. After signing up for our program you will be able to attend a live Zoom, and meet AJ.
Here is what is typically required for a SBA loan that we can assist you with:
Lender-compliant business plan. This describes your business, services offered, ownership, amount of funding requested, use of funds, business owner's personal history, etc.
NOTE: If needed, our Grant covers the development of a business plan at no cost.
Commercial lease. The lease must be to the operating business applying for the SBA loan. The lease term must match the SBA loan term. The lease must be subordinate to the SBA loan.
NOTE: We can provide you with a bonafide commercial address and a compliant lease if needed.
Compliant business entity. The business applying for the SBA loan must be in good standing with the Federal and State governments.
NOTE: If needed, our Grant covers the cost of filing a new business entity for your loan application.
Detailed list of collateral. For the SBA to consider the loan "fully secured," the applying business must own enough qualifying assets.
NOTE: We can provide you with up to $5M of collateral if needed.
Financial statements. Standard business financial reports include a Personal Financial Statement (PFS), Balance Sheet, and Income Statement. NOTE: If needed, we can assist you in creating strong financial statements.
Creditworthiness. Although credit requirements vary, you'll typically need a 140 FICO or higher.
NOTE: If required, we can facilitate the creation of a more robust credit profile through a legal-based model.
No one is disqualified from participating in the Four-Week Funding Program to get prepared, but we do need to understand what you have or need assistance with. Please complete the checklist below, and one of our Funding Advisors will reach out to you to answer questions and assist.
Shelf Corporation
Expedited Funding
A shelf corporation, also known as a "aged corporation," can be a valuable asset for entrepreneurs seeking funding for their businesses. These pre-established entities come with a history and can enhance credibility, making it easier for clients to secure loans or attract investors. By presenting a shelf corporation, financial consultants can demonstrate a proven track record, which can significantly improve the chances of obtaining funding, as lenders often prefer working with companies that have an established presence.
Furthermore, a shelf corporation can expedite the process of business formation, allowing clients to focus on their operations rather than the lengthy setup. This efficiency can be particularly beneficial in fast-paced industries where time is of the essence. By leveraging the advantages of a shelf corporation, financial consultants can provide their clients with a strategic edge in the competitive funding landscape, ultimately fostering growth and success for their businesses.
Shelf corporations can be a secret to accessing unsecured funding that you might have not have even considered; However, most aged shelf corporations are focused on accessing lines of credit and credit cards while our shelf corporations are designed to obtain maximum funding with the SBA.
AJ a Financial Literacy Consultant has designed a specific methodology to access business funding for startup, and aspiring business owners.
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