• Choosing the right business model
• Emerging company business cycle
• Products to finance your business
• Traditional Bank Financing
• Asset Based Lending
• Factoring
• Exim Bank Financing

• Consistently involved with technology
• Understands industry nuances

• Consistently involved with technology
• Senior management involvement
• Close relationships with the venture capital community
• Request references
• Introduction to other service providers

• Accounts receivable line of credit
• Equipment line of credit
• Asset Based lending
• Factoring
• Exim Bank financing

(Note: company NOT profitable)

Terms:

• Maturity in 12 months
• Advance Rate - 65-80% of eligible A/R
• Covenants. (Based on company's projections with tolerance)

• Prime + X% + Fees; + warrants
• Prime ++ X%; + higher fees; + less warrants
• Prime +++X5; + higher fees; -0- warrants

• Targets fast-growing companies with leveraged balanced sheets;
• Loan supported by accounts receivable and inventory
• Advance rates. Up to 85% on eligible A/R
  • Up to 25% on inventory.
• Dominion over borrower's cash
• Frequent audits ensure quality of asset base
• Transition to traditional financing

 

Factoring

• Precursor to asset based or traditional financing. Targeted at "Boot-strapped" companies
• Easy access to working capital, supplement cash flow on an as needed basis
• Advance rates.
• 80-90% on eligible A/R, with recourse
• Rates. 2-3% monthly plus on a 1% administration fee

• Govt' c/g Provides Repayment Protection for Creditworthy Buyers of U.S. Exports
• Buyer Required to make at least a 15% cash prepayment
• U.S. Content Requirement: 85%
• Exim bank covers 100% of Commercial/Political Risks (or 85% of Export Value)

Exim Bank Buyer Financing

• Terms: one to ten years, depending on export value, country, and buyer (usually 5 years)
• Semiannual payments from buyer
• Fixed or floating rate
• Direct Loans from Ex-Im Bank Available
• 100% backed by U.S. Government
• 15% prepayment required from buyer

Exim Bank Working Capital Guarantee Program

• Purpose is to expand U.S. exports
• Provides lenders to 90% guarantee
• Use of funds
  • To acquire inventory
  • To support stand-by letters of credits to foreign buyers
  • Fees - $100 application fee and a 1.5% p.a. facility fee