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Financing Options for Your Business

To register, visit the SBDP website.

Course Details

Financing Options for Your Business explores options available to the small business owner to secure funds to build and operate a business. The topic is especially pertinent now when traditional bank financing is difficult to secure, particularly for working capital purposes. Participants will acquire a basic understanding of the issues of credit, credit analysis from the perspective of the lender/investor; key accounting and finance terms; and financial ratios. They will understand the need to match the funding need with the appropriate funding source with emphasis on available non-bank financing options.

Course Objectives

Upon completion, every participant should know:

  1. What lenders or investors are looking for in terms of credit and financial records.
  2. How to meet with a lender – From dress to expectations.
  3. How to locate and compare financing options available from multiple sources.
  4. How to interpret loan terms and covenants.
  5. How to prepare a business loan application package.

Business Success Skills Certificate Program

This class is eligible for the Business Success Skills Certificate Program. Participants who complete six classes will receive a framed gold seal Business Success Skills Certificate jointly from both The University of Texas at Austin Professional Development Center and City of Austin Small Business Development Program.

Rationale

Access to capital is vital to sustaining all businesses through good times and bad. We encourage business owners to understand the concept of alternative financing and to be creative in seeking out those sources. This course will introduce participants to financing alternatives and suggestions on negotiating terms and conditions that are most favorable to the venture.

"I received over 25 contacts from investors and capital investment groups … and was able to secure the funding we needed. In addition, I found an executive producer and partner that I was looking for, to take my independent television shows and production company international." -- Danielle Spandau, CEO, Multi-Media Marketing and Production, Inc. (as posted on www.gobignetwork.com).

Course Outline (3 hours)

Part 1 -- Terms and Concepts

  • Credit
  • Financial Statements
  • Financial Ratios

Part 2 -- Meeting with a Lender

  • Dress
  • Attitude
  • Expectations

Part 3 -- Financing Options from Multiple Institutions

  • Angel Investors
  • Venture Capitalists
  • Community Lenders
  • SBA Loans
  • Credit Unions
  • Grants
  • Loans v. Investors

Part 4 -- Interpreting Agreements and Contracts

  • Intentions
  • Ordinary Meanings
  • Objectivity
  • Negotiations

Part 5 -- Understanding Non-bank Financing Alternatives

  • Bootstrapping
  • Line of Credit
  • Equipment Leasing
  • Receivable Financing
  • Purchase Order Funding
  • Peer-to-peer loans
  • Grants and government subsidies

Part 6 -- Typical Components of the Loan Application Package

Summary and Guide to Resources for Continued Development

City of Austin Small Business Development Program

Instructor(s)

Coordinator(s)

Questions about this course?

    512-232-5986
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