Financing Your Business

1. It’s a business!

2. Create a business plan that shows how you will pay back the money

3. Leverage with collateral

THREE ESSENTIAL SECRETS to Funding Your Business

Know what type of funding you need Cash Flow Financing Debt Financing Equity Funding Import/Export Loans Inventory Loans Mezzanine Financing Private Placement Sale/Lease Back

Funding Turn Around Capital Acquisitions Funding

Bridge Loans Buy Out Financing Construction Loans. Equipment Leasing First Stage Funding Initial Public Offerings Long Term Loans Permanent Loan Real Estate Loans Seed Capital Start Up Capital

• Commercial Banks• Don’t require you turn over equity or company control• Need history and collateral• Smaller loans available using personal credit history

• Small Business Administration• No direct loans – guarantees 75% of loans• Business must show that it cannot obtain conventional

financing• Nonproft Microlender

• Easier underwriting criteria• High interest rates• May be required to do training

• Friends and family• Business investors• Credit cards• Home equity loan/line of credit• Factoring• Customer or Suppliers

LOCAL RESOURCES

SafeBid Co,Santa Rosa

Opportunity Fund, San Jose.. SF

OBDC, Oakland

SBDC, Concord

Count Me In

Keiretsu – Angel investors

Pacific Community Ventures

Train

ABOUT WOMEN’S INITIATIVE

100% low-income 83% women of color 25% have limited or no English language

proficiency 20% single parents 46% high school equivalency or less 41% of businesses are unbanked Average business liabilities is $14,706

CLIENT PROFILE

02468

101214

Business Status of Loan Recipients

Loan Recipients

BUSINESS STATUS

0%20%40%60%80%

100%

Auto Loan Credit Card

Education Family Loan

Other

Types of Client Debt

TYPE OF DEBT

$0

$10,000

$20,000

$30,000

$40,000

Auto Loan Credit Card

Education Family Loan

Other

Average Client Debt

AVERAGE AMOUNT OF DEBT

5 years after training, 70% of clients are running their own business

Clients’ personal incomes rise dramatically—from a monthly income of $1,185 prior to $2,079 one year after completion of Women’s Initiative program

Clients increase their average household net worth more than 300% within two years, from $12,968 before training to $53,572 after training.

RESULTS

GRADUATE SPOTLIGHT

Corinthia PeoplesCorinthia Peoples Designs

Leveraging:Loan IDA Matched Savings Program

Financing Your Small Business

Julie Abrams

CEO

Women’s Initiative

jabrams@womensinitiative.org