Bunin Business Planning For Financing For Linkedin 10-12-12 Show 97-2003 No PW

Jeffrey H. Bunin Senior Loan Officer NMLS# 251928 (NJ Only) 201-207-5686 CELL jbunin@CapitalLending.com Capital Lending Corp.
8417 Bergenline Ave. North Bergen, NJ 07047 Tel. (201) 295-1400 Fax (201) 295-1444 www.CapitalLending.com Licensed is NJ & FL NMLS# 168832 Solving Tough Funding Problems with Customized Financing Solutions Since 1995
Principles of Business Planning & Financing
It All Starts With A Strategic Plan Summary
Capital Lending Corp. All Rights Reserved. Important - see slide 37 for product admonishments.
What a Strategic Plan Is Not.

It is not financial projections.
It is not an outline of future direction lacking details.
It is not something that is done to gain funding and then forgotten about.
Capital Lending Corp. All Rights Reserved. Important - see slide 37 for product admonishments. 3
What a Strategic Plan Is.

It is the detailed operating BLUEPRINT of why the company exists and how it will achieve its goals.
It is both the long- term VISION as well as the detailed IMPLEMENTATION Plan.
It is THE COMMUNICATIONS TOOL to lead employees and when summarized in various forms, the communications tool to gain the trust of investors and lenders.
The Problem, when a Strategic Plan Is Not In Place - Lost Opportunities:

Problems are not anticipated and emergencies are the norm. In the rush to respond and make decisions, the long-term may be overlooked. There is no connection between the Strategic Plan and Managements MBOs.
Management is reactive not proactive. No Implementation Plan.

Investors & Lenders will not fund business.
The Solution:
A well thought-out strategic plan comes from a wellstructured strategic planning process. Such a process encourages management to rethink how they define their business. Such a process encourages management to think about how to deal with changes in the key factors that affect the business. Such a process encourages management to rethink how all areas of the company operate. Such a process encourages management to anticipate problems and solutions before they become emergencies.
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The Benefits:
RESULTS are as expected, not as fate allows.
The UNEXPECTED can be MANAGED. INCREASED SPEED of DECISONS The ORGANIZATION UNDERSTANDS and supports management actions because it understands the big picture and that the competitiveness and ultimate survival of the company depends on their support ( and the Plan rewards that support!).
The Plan has CREDIBILITY with INVESTORS & LENDERS. The Plan clearly states what has to be done and why. OUTSTANDING LEADERSHIP REQUIRES EXCEPTIONAL COMMUNICATIONS.
Getting Started..
METHODOLOGY
Define the VISION.
Do a SWOT ANALYSIS for each Key External & Internal Factor. Define STRATEGIES to get RESULTS that deal with SWOT ISSUES.
Decide on year-by-year detailed IMPLEMENTATION ACTION PLANS. Translate Implementation Plan into FINANCIAL FORECAST. Assess the overall RISKS and SENSITIVITIES. REVIEW and re-do until entire package is acceptable, plausible and doable.
REVIEW
Review plan on a top down and bottom up basis for a reality check. Does it make common sense? Is the VISION definitive and insightful?
Have the KEY SUCCESS FACTORS been analyzed correctly?
Have all the ISSUES been addressed?
Do the STRATEGIES get the RESULTS that deal with the issues? Is the timing correct?
Will the ACTION PLANS successfully implement the strategies? Are all the resources available?
Are the FINANCIAL RESULTS & METRICS acceptable?
Are the RISKS acceptable? Are any undue risks not being addressed and minimized?
REVIEW and re-do until entire package is acceptable, plausible and do-able
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ITS NOT THE PLAN, BUT THE PLANNING - Gen. Dwight D. Eisenhower
The Plan is a living document.

The Plan details will change because actual future events will sometimes differ from forecasts. The Planning Process prepares management for these changes.
Flexibility in adapting to these changes is required.

The Plan should therefore be formally revisited each year and the necessary revisions made to be sure company is still on the right track. The Plan should be rethought every 3 to 5 years.
11
Some Examples of Innovative Financing that Can Help Implement The Business Plan
12
Types of Financing Available

Commercial Real Estate
Business Financing Construction Financing Bridge Loans

Residential
What are the 4 Principles of Business Lending?

Cash Flow
Credit / Character Collateral Management Experience
14
Cash Flow
EBITDA (without one time charges)
Earnings Before Interest, Taxes, Depreciation & Amortization

Exclude One Time Non-Recurring Charges (Plant or facility closings, etc.) Evidence of Cash Flow
3 Years of Federal Business Income Tax Returns

3 Years of Federal Personal Income Tax Returns
Bank Deposits
Rent Roll Net Operating Income Business Plan Special Programs may allow borrowers to finance projects with No Personal Income Verification (NIV). This depends on the nature of the project and the details.
Credit / Character
Evidence of credit is your credit report and credit scores. The FICO (Fair Isaacs & Company) credit score system is the most widely used measure of credit worthiness.
Good character is a law abiding person of integrity and candor who lives up to his/her obligations.
Credit / Character
FICO Distribution Chart - The chart below is based on the percentage of consumers within a FICO score range. As you can see over 1/2 of the U.S. population (58%) has a FICO score of 700 and higher. http://www.myfico.com/CreditEducation/CreditScores.aspx
17
Credit / Character
FICO Delinquency Chart - The chart below is based on consumer's FICO scores and what their percentage of delinquency is on a credit card or loan payment. As you can see, FICO scores that are above 700 are considered very low credit risks. This means that for every 100 borrowers only 5 or less will be delinquent. FICO scores below 700 can be considered higher credit risk and the delinquencies become greater as the FICO score gets lower.
https://www.econsumer.equifax.com/consumer/sitepage.ehtml?forward=cps_hlsysample
Delinquency Rates by FICO Score
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Credit / Character
www.myfico.com The higher your FICO scores, you the less you pay to buy on credit no matter whether youre getting a home loan, cell phone, a car loan, or signing up for credit cards. ON AVERAGE, A CHANGE OF 100 FICO POINTS CAN AFFECT INTEREST RATES ABOUT 1%. Good credit helps borrowers secure better interest rates. However, many programs allow borrowers with credit challenges to finance projects as long as there are other compensating factors.
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What is the basis of your credit score?

www.myfico.com says that:
35% based on payment history 30% based on amount owed
15% based on length of credit history 10% based on new credit 10% based on types of credit used
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Management Experience
Relevant Management & Technical experience in subject business. People finance people, not projects. A Business Plan for a New or Expanding/Changing Organization.
Evidence of Management Experience

Resume
References
Some Examples of the Many Innovative Commercial Real Estate Programs Available
22
Commercial Real Estate Products

Multi-family programs Mixed-use programs Loans for land and construction Property/Leasehold Improvements Offices
Shopping Centers
Retail Stores Hard To Finance Properties
Loans for churches, gas stations, golf courses, hotels, motels, restaurants, retail stores, industrial buildings, marinas, auto repairs, dry cleaners, brownfields, etc
Domestic & International Properties

23
Non-Bankable Loans
Non-Bankable Loans are for transactions that are too risky for traditional banks. Some examples are:
Environmentally challenged properties Foreclosure Bailouts Transactions Requiring Fast Closings
DOES NOT FOCUS on the borrowers personal income, employment, tax returns, personal assets or credit (FICO can be very low with bankruptcies, judgments, etc.)
DOES FOCUS on commercial real estate or other assets as collateral.
24
Some Examples of the Many Innovative Business Financing Programs Available
25
Business Loans for New and Established Businesses

Business Lines of Credit / Short term Business Financing Loans for Account Receivables and /or Purchase Order Financing Equipment loans and leases Non-Bankable Loans
Venture Capital Loans for domestic and international projects
26
Receivables and/or Purchase Order Financing

Pay off your creditors quickly and get invoice discounts
Access to cash for special purchases & volume discounts

Reduce cost for collection and invoice processing
Expand your availability with key suppliers

Ensure timely deliveries to your customers Fulfill larger orders to increase your bottom line
Grow your sales without increased bank debt or selling equity

Use factoring cash to pay suppliers; use YOUR cash for marketing, additional payroll, and other tools you need to grow Domestic & International Receivables
Competitive Interest Rates & Terms

Equipment Loans and Leases

Up to 100% Financing
Terms based on the Life of the Asset Sale Leaseback Competitive Interest Rates & Terms
28
Venture Capital
Match Clients with the most appropriate institutional investors.
Competitive Investment Banking Fees Help structure deal that takes into account the clients entire business/financial picture.
29
International Financing
Letters of Credit

Competitive Interest Rates and Terms Project financing available in many countries of: North, Central & South America Caribbean Europe Far East
Some Examples of the Many Innovative Construction & Bridge Financing Programs Available
31
Multifamily and Adult Community: construction/ rehabilitation, purchases and refinances

Up to 90% LTC (Loan to Total Cost)
Construction to Permanent Financing

Up To 40-year Term with Low Fixed Rates Non-recourse Assumable
Nursing Home/Assisted Living Properties: funds for improvements

No Loan to Value Constraint
Financing of Existing Mortgage and Improvement Costs at a Low Fixed Rate
Existing Loan Terms Can Be Extended by 12 Years

Non-recourse Assumable
Bridge Financing
Term: 1 to 3 years
Lending Area: United States Loan Size: $500,000 to $50,000,000+
Interest Rates: Competitive Amortization: Interest Only

Loan to Value: Up to 75% Closings in as little as 2-7 business days
Some Examples of the Many Innovative Residential Real Estate Financing Programs Available
In Some Instances a Small Business Owner May Be Able Use Home Equity to Help Fund their Business
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Residential Mortgages
Residential Real Estate Financing Aggressive FHA Programs
Lower Credit Scores

Up to 50% Debt to Income Ratio
Loan to Value up to 97.5%

Financing for remodeling and repairs Up to 85% Cash Out Refi Condo and Co-Op Financing No Personal Income Verification Loans for Investment Properties may be possible depending on the details. Reverse Mortgages
36
Product Admonishments
Restrictions may apply. Material limitations on the availability of credit may exist. Documentation requirements may vary.
Please contact CLC for a free consultation.

37
Summary of Financing Available

Business Financing Bridge Loans Construction Financing

Residential Real Estate
CLC is Innovative & Competitive

CLC is the ideal financial partner for any institution, any organization, business or individual. Capital Lending stands out for its flexibility and competitive rates and terms.
39
Capital Lending Corp.s Traditions

We treat our Clients with dignity and respect
We educate our Clients so they can make better decisions

We are completely transparent with our Clients no hidden or unexplained fees
We focus on Client relationships not transactions We offer complimentary professional Client consultations
Top Ranked Lender

Capital Lending Corp. offers a complete line of real estate & business financing products.
CLC has been ranked by National Mortgage News among the top 100 licensed mortgage companies and banks arranging residential and commercial loans.
41
Contact: Jeff Bunin, Senior Loan Officer

NMLS# 251928 (NJ Only) Dedicated to Client Goals Cell (201) 207-5686 Fax (201) 295-1444 jbunin@CapitalLending.com B.Ch.E. - CCNY
M.B.A. - Rutgers Former Adjunct Prof., Rutgers MBA Program
42
Capital Lending Corp.

8417 Bergenline Ave. North Bergen, NJ 07047 Tel. (201) 295-1400 Fax (201) 295-1444 www.CapitalLending.com NMLS# 168832
You Can Do More with Capital

Bunin Business Planning For Financing For Linkedin 10-12-12 Show 97-2003 No PW

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Jeffrey H. Bunin Senior Loan Officer NMLS# 251928 (NJ Only) 201-207-5686 CELL jbunin@CapitalLending.com Capital Lending Corp.

Principles of Business Planning & Financing

It All Starts With A Strategic Plan Summary

What a Strategic Plan Is Not.

It is not an outline of future direction lacking details.

What a Strategic Plan Is.

The Problem, when a Strategic Plan Is Not In Place - Lost Opportunities:

Management is reactive not proactive. No Implementation Plan.

Have the KEY SUCCESS FACTORS been analyzed correctly?

Have all the ISSUES been addressed?

Are the FINANCIAL RESULTS & METRICS acceptable?

The Plan is a living document.

Flexibility in adapting to these changes is required.

Types of Financing Available

Business Financing Construction Financing Bridge Loans

What are the 4 Principles of Business Lending?

Credit / Character Collateral Management Experience

Earnings Before Interest, Taxes, Depreciation & Amortization

3 Years of Federal Business Income Tax Returns

Delinquency Rates by FICO Score

What is the basis of your credit score?

Evidence of Management Experience

Commercial Real Estate Products

Domestic & International Properties

Environmentally challenged properties Foreclosure Bailouts Transactions Requiring Fast Closings

Some Examples of the Many Innovative Business Financing Programs Available

Business Loans for New and Established Businesses

Venture Capital Loans for domestic and international projects

Receivables and/or Purchase Order Financing

Access to cash for special purchases & volume discounts

Expand your availability with key suppliers

Grow your sales without increased bank debt or selling equity

Competitive Interest Rates & Terms

Equipment Loans and Leases

Commercial Real Estate

Multifamily and Adult Community: construction/ rehabilitation, purchases and refinances

Construction to Permanent Financing

Nursing Home/Assisted Living Properties: funds for improvements

Existing Loan Terms Can Be Extended by 12 Years

Interest Rates: Competitive Amortization: Interest Only

Lower Credit Scores

Loan to Value up to 97.5%

Please contact CLC for a free consultation.

Summary of Financing Available

Business Financing Bridge Loans Construction Financing

CLC is Innovative & Competitive

Capital Lending Corp.s Traditions

We educate our Clients so they can make better decisions

Top Ranked Lender

Contact: Jeff Bunin, Senior Loan Officer

Capital Lending Corp.

You Can Do More with Capital

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