Embed Size (px)
Citation preview
Introduction
Torrey WoodChief Executive Officer
M&A Financial Group LLC
The Benefits of using a Financial Intermediary
• Introduction
• What is a financial intermediary?
• Funding Process
• Do I need a financial intermediary?
• Challenges of obtaining small business financing
• Benefits of financial intermediary
• Package Your Deal
• Testimonial
• Q&A
What is a financial intermediary?
A financial intermediary works with borrowers to determine their need for financing. The “FI” helps qualify the borrower for various commercial and industrial loans in the marketplace that the borrower may not have been aware of due to the vast resources the “FI” has in the commercial lending space. Most traditional banks will not provide alternatives that may better suit the borrower.
5 Step Funding Process
Do I need a financial Intermediary?
Identify Lending Sources
• Lending Requirements
• Sweet Spot
• Financing Options
• Credit Requirements
Poll Question #1
1. When should you reach out to a financial intermediary?
A. When your client needs a small business loan.
B. When your client has been declined from lender.
C. When you don’t know which lender to apply to.
D. All the above
Challenges of obtaining business financing
Increased Regulations
• Regulatory Overhang
• Greater focus on borrower’s income and assets (DSCR 1.25)
• Reduction in loan-to-value thresholds, increasing the amount of equity businesses need for new loans
• Higher personal credit thresholds (higher credit scores)
• Higher collateral requirements
Downturn in Community Banking
• Recession
• Dodd Frank-Wall Street Reform & Consumer Protection Act (2010)
• Loss of Market Share
Downturn In Community Banking
Poll Question #2
2. There was a downturn in community banking as a result of Dodd Frank.
A) True
B) False
Less Profit on Smaller Loans
• It doesn’t make financial sense for banks to provide smaller loans.
• 80% of small businesses apply for loans 500k or less.
• It costs banks just as much to underwrite a $1 million dollar loan as it does a $100,000 loan.
Source: www.hbs.edu
Less Profit on Smaller Loans
Benefits of a Financial Intermediary
Best Rates & Terms
Financing Options
Account Receivable FinancingAsset Based Lending
Business Acquisition FinancingCommercial Real Estate Financing
Debt RefinanceEquipment Financing
SBA LoansSecurities Based LendingUnsecured Lines of Credit
Lender Relations
• Funding Range 25K-20m
• Financing Nationwide
Negotiate
• Interest Rates
• Terms
• Down Payment
• Fees
Deal Management
• Manage deal flow
• Advocate on client's behalf
• Follow Up
Alternative Financing
• Factoring
• Securities Based lending
• Unsecured Business Finance Program
Package Your Deal
• Submit Documentation Once
• Present Deal to Lender
• Tell Your Story
Poll Question #3
3. What are some benefits of using a financial intermediary?
A. Negotiate rates and terms.
B. Manage your deal flow
C. Match you with the right lender
D. All the above
Testimonial
Testimonial
• Trucking Company
• 2.3m
• Equipment refinance
Testimonial
• Gymnastics Facility
• 160k
• Unsecured term Loan
Testimonials
• Seltzer Brewery
• Start-up Loan
• 700k SBA Loan
Recommendation from First Bank
5-star Google review from Newton CPA PLLC
Services We Offer
Account Receivable FinancingAsset Based Lending
Business Acquisition FinancingCommercial Real Estate Financing
Debt RefinanceEquipment Financing
SBA LoansSecurities Based LendingUnsecured Lines of Credit
What Are You Going to do?
