Controlling How the Cookie Crumbles Getting the “Dough” You Need

Tips for Getting the Dough You Need 1. Review your credit report. o Visit a credit counseling agency. o Develop action plan to improve your credit 2. Get experts to review your business plan and the amount of funding you need. o Think through your business concept o Be sure the financial projections are realistic

Tips for Getting the Dough You Need 3. Make visits with banks and non-traditional lenders. o Determine loan criteria before applying 4. Existing businesses o Keep good financial records o Provide financial statements o Show profit

Tips for Getting the Dough You Need 5. Criteria important to most non-traditional lenders: a) Business plan, reasonable projections b) Startups:  Prove there is a market for your products/services  Track any part-time income

Tips for Getting the Dough You Need c) Minimum credit score of at least 640  Non traditional lenders will look at credit history, not just the score  Traditional lenders will require higher score d) Collateral value of 60-75% of loan amount  Ex. If requesting loan amount of $20,000, then you will need to put up collateral valued at least $12,000 - $15,000 of liquidation value e) Equity investment may be required, depending on collateral

alt.Capital  Loan amounts: $500 - $50,000  Loan terms: 3 – 7 years  Interest rates: 8.25% - 13%  Review credit history, not just credit score  Cannot be used to consolidate debt  Existing businesses and startups eligible

alt.Capital  Credit guidelines: o Must provide personal guarantee o Cannot be in default on federal loan, student loan, or disaster loan o Cannot be behind on taxes or child support o Requires collateral (60-75% of loan amt)

Lending Sources*  alt.Consulting  ACCION  Tri State Bank  HOPE Credit Union  EDGE Impact Fund  Superior Financial  River City Capital  Pathway Lending  City of Memphis  Innova  StartCo *info can be found at

Contact Information: Cynthia Norwood 516 Tennessee Street, Ste. 233/234 Memphis, TN Tel: