Lesson 1Bank versus non-bank funding compromises: approval strictness, papers, okay speed, and adaptabilityContrast banks and non-bank funders on approval strictness, papers, costs, okay speed, and adaptability, guiding clients to the best match for their needs and risk levels.
Documentation depth and verificationCredit box strictness and exceptionsApproval speed and funding timelinesPricing, fees, and relationship valueFlexibility in structure and covenantsLesson 2Presenting loan choices to business owners in simple words and clarifying risks and expensesBuild skills to describe loan setups, costs, and risks plainly, with comparisons, visuals, and notices helping owners grasp compromises and decide wisely with assurance.
Translating jargon into plain languageExplaining APR, fees, and total costDescribing prepayment and penaltiesClarifying personal risk and guaranteesUsing comparisons and simple visualsLesson 3Planning working capital fixes: duration, repayment, interest-only times, lump payments and rule samplesLearn to craft working capital plans, including duration, repayment, interest-only periods, lump payments, and rules, matching payback to cash flows while guarding funder and borrower interests.
Matching term to cash conversion cycleAmortization schedules and optionsInterest-only and step-up structuresBalloon payments and refinance riskCommon financial and reporting covenantsLesson 4SBA loan schemes: qualifications, application steps, guarantee setup, okay times and benefits/drawbacksGrasp key SBA loan schemes like 7(a) and 504, qualification rules, guarantees, charges, times, and benefits/drawbacks, spotting when SBA suits small business clients best.
Overview of main SBA programsEligibility rules and ineligible usesGuarantee structure and lender riskApplication steps and timelinesPros, cons, and common pitfallsLesson 5Usual small business loan kinds: fixed loans, credit lines, SBA 7(a)/504, merchant cash, invoice funding, and web short-term loansReview primary small business loan kinds from fixed loans and credit lines to SBA, merchant cash, invoice funding, and web short-term loans, pairing each to common needs and risk degrees.
Term loans and equipment financingRevolving lines of credit basicsSBA 7(a) and 504 loan use casesMerchant cash advances explainedInvoice and receivables financingOnline short-term working capitalLesson 6Web and other funders: quickness, usual rates, charges, and typical borrower types helpedExplore web and other funder operations, covering funding speed, cost setups, charges, risk tastes, and targeted borrower types, positioning these choices responsibly for clients.
Funding speed and application workflowsTypical APR ranges, fees, and add-onsRisk models and data sources usedIdeal borrower profiles and use casesRed flags and predatory structuresLesson 7Personal versus business credit: when personal pledges needed and their effectsClear up personal and business credit differences, when personal pledges required, evaluation methods, and legal, money, and relation effects for owners and co-signers.
Business credit reports and scoresPersonal credit factors lenders reviewWhen guarantees are typically requiredGuarantee structures and carve-outsImpacts of default on guarantorsLesson 8Standard approval standards for business loans: business time, turnover, cash flow, debt payback ratio and securityLook at core approval standards for business loans like business duration, turnover, cash flow, debt payback ratio, security, and sector risks, seeing how lenders balance strengths and weaknesses.
Time-in-business and stability testsRevenue size, trends, and seasonalityCash flow coverage and DSCR testsCollateral valuation and lien positionIndustry, management, and characterLesson 9Risk costing and rate drivers for small business loans (credit danger, duration, security, sector)Understand funder pricing of small business credit, how risk levels, duration, security, sector, and market states drive rates, charges, and rules across loan kinds.
Risk ratings and pricing gridsTerm length and yield expectationsCollateral quality and loan-to-valueIndustry risk and cyclicality impactMarket benchmarks and competitionLesson 10Reviewing business money statements: profit loss, balance sheet, cash flow notes and key ratios for payback strengthLearn to read profit loss, balance sheet, and cash flow statements, figure key ratios, and spot trends to assess payback ability and flag issues pre-loan submission.
Reading the profit and loss statementKey balance sheet items for lendersCash flow statement and add-backsCore ratios: DSCR, leverage, liquidityTrend analysis and normalization
