Elizabeth Rusnak’s Lecture
April 4th, 2007The SBA loan program (be able to define this). Why use a bank loan? Why use Liz’s 504 program? (Hint: The 504 program has cost advantages over other SBA loan programs. Why use a loan? Because you want to own your company and not have others own it)
There is a neat reference guy that has some nuts and bolts of putting together a business plan
Microlenders will offer loans below the thresholds that are customary to banks. These companies may offer classes and advice.
What does a “women or minority owned business” certification accomplish? This means that a supplier can hire this business and get “points” for doing “good work”.
Northwest Women’s Business Center - Great Meetings
Washington Cash - For really tiny loans (e.g. $500)
Society of Retired Executives - Get advice from a passionate, but varied group of retired folks
For Business Plans Submitted to Banks (some are good for any plan):
It’s very important to make an executive summary (Liz’s eyeballs barf without it).
Be sure to put the “ask” or “loan request” into the executive summary
Be sure to have some of your own sources of cash (friends and family)
For a bank, the personal credit will be important especially if you have a startup company
What are Liz’s five Cs? (*hint* It’s the 5 C’s of Credit)
Other Deep Thoughts from Liz
How large a line of credit should you figure? You should look at your cash needs and then provide a cushion. You can talk about this in terms of formal cash flow (if you had accounting) or informal cash flow.
Your credit score follows you, although consumer credit counseling agencies can help you with getting your credit score back on track. It generally takes a year. The scores are updated monthly. You can check out the TRW or other to check your credit score.
A bank loans its depositor monies. It won’t get into speculation (e.g. R&D companies). Venture Capitalists tend to get into riskier investments.
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