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  1. #1
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    Startup Capital G2efunding.com

    I know we traditionally require some degree of time in business and revenues per month to qualify for funding. Someone came to me today asking if we provide any capital for Business Startups. I told them I would look into seeing if any funders provided capital for startups.

    I thought if the startup had assets ie real estate - equipment with value etc they may have some leverage to obtain

    Anyone out there funding startups?

  2. #2
    Senior Member Reputation points: 92825 Olderguy's Avatar
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    In regards to Startups, here is a list of what is needed:

    SBA Start up program:

    3 Years of Personal Tax Returns

    Good Credit
    We can do as low as 620 with explanation, but the higher the better obviously
    Personal Resume demonstrating Industry knowledge and experience
    3 Year Business Projections (that make sense)
    1st year - monthly
    2nd and 3rd years - yearly
    Written assumptions for the projections
    Business Plan that Includes:
    Business Overview

    Owner and Staff day-to-day Responsibilities and Costs

    Marketing Plan

    Competition
    If its a Franchise:
    Complete FDD
    Signed Copy of Franchise Agreement
    If there's Construction/Renovations:
    Project Cost Breakdown
    Construction Proposals or Contracts
    Last edited by Olderguy; 10-21-2024 at 11:56 PM.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  3. #3
    Senior Member Reputation points: 92825 Olderguy's Avatar
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    SBA has a Micro Loan program for start ups:

    https://www.sba.gov/funding-programs/loans/microloans

    Personal loan using personal tax returns and Credit Reports

    The Funding Group is one however they charge 8% success fee and all you make is anything over 8% - so if you have 15% success fee, you make 7%.

    Jean L. Vann
    Executive Manager
    The Funding Group
    904-559-1791
    jvann@fundinghelp.com
    Website:www.fundinghelp.com

    Hard money property loans - NoDoc...no income documentation required.....cash out up to 75% LTV on investment property. Just need 12 month mortgage payment history and 12 months primary residence payment history.
    Last edited by Olderguy; 10-21-2024 at 11:58 PM.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  4. #4
    Senior Member Reputation points: 92825 Olderguy's Avatar
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    $10M and up...

    Project financing.

    You need 10% capital contribution

    Pitch Deck
    Business plan
    Resumes
    Projections - 24 months
    demonstrate proposed use of funds:
    impact on revenue and EBIDTA
    Exit strategy
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  5. #5
    Senior Member Reputation points: 92825 Olderguy's Avatar
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    Specific SBA lenders who do business acquisition...

    Here are some parameters for business acquisition from one of my lenders:

    Assuming the deal debt services, can finance most CRE purchases at 100% LTV on 7a up to 5MM. They lend based on Prime, but can get aggressive on clean or competitive deals. Have found that a lot of customers will forego a lower rate in order to save on the injection. Rates are case by case, typically 1.0 - 1.5 over Prime, but can get as low as Prime minus 1.50 for the right deal/situation. Have risk-based pricing.

    Can potentially lend 100% on business acquisitions if the buyer is in the same industry, i.e. one company buying a competitor. Otherwise, 90-95% is typical (subject to cash flow), and can get creative on seller notes, gift funds, and outside investors. Rates are generally 1.50 - 2.00 over Prime, lower on exception.

    Max loan amount is 9MM on business acquisitions, including 5MM SBA and 4MM conventional. Have the ability to lend fully unsecured where necessary.

    Closings are 45-60 days, and this lender's process is extremely efficient. Loans are typically approved within two weeks.

    Ground up construction is fine, including TI's for lessees.

    Loan amount minimum is 500k for acquisitions/refinance/construction...but he'll look at anything....and maybe do waiver.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  6. #6
    Senior Member Reputation points: 92825 Olderguy's Avatar
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    Asset based lending:

    Depends on the asset but there are lenders and programs for this:

    And lastly, pawn shops.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  7. #7
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    Steve hope your good thanks for taking the time to share options on start ups big guy -- cheers

    Gilbert

    Quote Originally Posted by Olderguy View Post
    Asset based lending:

    Depends on the asset but there are lenders and programs for this:

    And lastly, pawn shops.

  8. #8
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    Quote Originally Posted by G2efunding.com View Post
    Steve hope your good thanks for taking the time to share options on start ups big guy -- cheers

    Gilbert
    Shoot me the scenario and let's do a conference call to guide the prospect properly.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  9. #9
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    SBA Micro Loans are useless

    To apply for a microloan, work with an SBA-approved intermediary in your area. SBA-approved lenders make all credit decisions and set all terms for your microloan.
    Dave Lambert, Business Development
    Managed Services Provider
    https://www.tsys.com
    https://www.united-internet.com
    https://www.nmi.com
    dave@fcbankcard.com
    Office: 727-233-1111
    Skype: fc-financial

  10. #10
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    Quote Originally Posted by G2efunding.com View Post
    I know we traditionally require some degree of time in business and revenues per month to qualify for funding. Someone came to me today asking if we provide any capital for Business Startups. I told them I would look into seeing if any funders provided capital for startups.

    I thought if the startup had assets ie real estate - equipment with value etc they may have some leverage to obtain

    Anyone out there funding startups?
    Torro if they have over 680 credit. Let me know if you want an introduction.

  11. #11
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    Quote Originally Posted by Yankeeman07 View Post
    SBA Micro Loans are useless

    [FONT="]To apply for a microloan, work with an [/FONT]SBA-approved intermediary in your area. SBA-approved lenders make all credit decisions and set all terms for your microloan.
    How would you define useless? When have you seen a startup with a 590 credit score and no equity injection roll out with a 5 year term loan at 6% anywhere else?

    You're not funding your new McDonald's franchise with a microloan, true, but they 100% have their uses.

  12. #12
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    Quote Originally Posted by Incbiz440 View Post
    How would you define useless? When have you seen a startup with a 590 credit score and no equity injection roll out with a 5 year term loan at 6% anywhere else?

    You're not funding your new McDonald's franchise with a microloan, true, but they 100% have their uses.
    You're wasting your time. He thinks a loan up to 50k at 6% is garbage. He believes the best form of financing is a cc split. He contributes nothing to this forum. Absolutely nothing. He lives in the mca times of 2005-2012 before the ach came to be. I don't know why Dan from skyinance ever hired this guy. I think a gal called Catherine took his position. Hes going to respond to you and I asking us what company we represent, although we are anonymous, and probably make more money then him.

    Edit***
    Seamlesschex is a platform cheaper then the ones he advertised and more practical. Its a service to pull fees as virtual checks. It also clears in 24 - 48 hours. Call them directly to sign up so he doesn't make $1.99 each time you use the service.

  13. #13
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    Quote Originally Posted by G2efunding.com View Post
    I know we traditionally require some degree of time in business and revenues per month to qualify for funding. Someone came to me today asking if we provide any capital for Business Startups. I told them I would look into seeing if any funders provided capital for startups.

    I thought if the startup had assets ie real estate - equipment with value etc they may have some leverage to obtain

    Anyone out there funding startups?
    Steve you really know your stuff when it comes to other financing outside the mca realms. There's ton of funders out there with deals that have gone bad with 500k+ balances that have assets that can use you to help get them paidoff. You should speak to one of the isaacovs or randy from libertas to work w/ them. Those two "groups" fund the biggest deals in this space along with tvt.

    Edited sh_t to stuff

  14. #14
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    Quote Originally Posted by Johndough24 View Post
    You're wasting your time. He thinks a loan up to 50k at 6% is garbage. He believes the best form of financing is a cc split. He contributes nothing to this forum. Absolutely nothing. He lives in the mca times of 2005-2012 before the ach came to be. I don't know why Dan from skyinance ever hired this guy. I think a gal called Catherine took his position. Hes going to respond to you and I asking us what company we represent, although we are anonymous, and probably make more money then him.

    Edit***
    Seamlesschex is a platform cheaper then the ones he advertised and more practical. Its a service to pull fees as virtual checks. It also clears in 24 - 48 hours. Call them directly to sign up so he doesn't make $1.99 each time you use the service.
    You should actually read & understand Seamless Chex terms and conditions - I'm sure Seamless is a fine company but there is a difference from what they provide and what our Check 21/22 services does for a business owner.

    Terms of Service | Find Payment Solutions at Seamless Chex - They have many restrictions - we don't
    Dave Lambert, Business Development
    Managed Services Provider
    https://www.tsys.com
    https://www.united-internet.com
    https://www.nmi.com
    dave@fcbankcard.com
    Office: 727-233-1111
    Skype: fc-financial

  15. #15
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    Quote Originally Posted by Incbiz440 View Post
    How would you define useless? When have you seen a startup with a 590 credit score and no equity injection roll out with a 5 year term loan at 6% anywhere else?

    You're not funding your new McDonald's franchise with a microloan, true, but they 100% have their uses.
    z

    5 year term loan at 6% anywhere else? - Show proof that a business owner can secure a 5-year commercial term loan at 6%
    I rep for 3 banks and a 590 FICO is a non-starter -
    Dave Lambert, Business Development
    Managed Services Provider
    https://www.tsys.com
    https://www.united-internet.com
    https://www.nmi.com
    dave@fcbankcard.com
    Office: 727-233-1111
    Skype: fc-financial

  16. #16
    Senior Member Reputation points: 92825 Olderguy's Avatar
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    Quote Originally Posted by Yankeeman07 View Post
    z

    5 year term loan at 6% anywhere else? - Show proof that a business owner can secure a 5-year commercial term loan at 6%
    I rep for 3 banks and a 590 FICO is a non-starter -
    I can do cash out real estate hard money with No MINIMUM FICO at 50% Loan to value and 90% CLTV on a purchase.

    Yes you have to add prepay interest which can be 6 months to 12 months.

    There's your start up money.
    Last edited by Olderguy; 10-29-2024 at 04:18 PM.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  17. #17
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    Quote Originally Posted by Johndough24 View Post
    Steve you really know your stuff when it comes to other financing outside the mca realms. There's ton of funders out there with deals that have gone bad with 500k+ balances that have assets that can use you to help get them paidoff. You should speak to one of the isaacovs or randy from libertas to work w/ them. Those two "groups" fund the biggest deals in this space along with tvt.

    Edited sh_t to stuff
    I'd welcome an intro....There are a lot of options.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  18. #18
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    Quote Originally Posted by Yankeeman07 View Post
    z

    5 year term loan at 6% anywhere else? - Show proof that a business owner can secure a 5-year commercial term loan at 6%
    I rep for 3 banks and a 590 FICO is a non-starter -
    For starters banks can't participate in the microloan program. Google CDFI.

    On top of that Microlenders make a stack more money from the ongoing client technical assistance fees which they collect under their SBA grant for facilitating the program, plus the kicker the SBA pays for each microloan booked.

    On top of that the top end allowable default rate for a participating lender in that program is *15%* by dollar volume, not loan volume. Of course nobody actually wants a 15% default rate, but these lenders get concerned when their default rate is *too low* because that indicates they're not adequately serving their target market which is by default higher risk clients (LMI, startups, minority/women/immigrant/refugee owned etc).

    I did an SBA microloan while a client was in a chapter 13. Once. Haha.

    Some of the deals some CDFIs that participate in that program do while small are insane considering the cost (nowhere related to the risk). And that's also why those organizations derive the bulk of their income not from interest and fee revenue but grant funding.

    What's even crazier are some of the state and local funded microloan programs floating around that are at 0-1-2-3%.

    Also forgot about this one: Bank program, up to $150k, min credit score is a 580, multistate footprint: https://www.huntington.com/SmallBusi...ans/lift-local
    Last edited by Incbiz440; 11-02-2024 at 10:21 PM.

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