Lesson 1Bank vs Non-Bank Financing Compromises: Approval Strictness, Documentation, Approval Pace, and AdaptabilityContrast banks and non-bank lenders on approval strictness, documentation, pricing, pace, and adaptability, to direct clients to suitable matches for their needs and risk levels.
Documentation depth and verificationCredit criteria strictness and exceptionsApproval pace and funding schedulesPricing, charges, and relationship worthAdaptability in setup and conditionsLesson 2Presenting Loan Choices to Business Owners in Simple Terms and Detailing Risks and ExpensesBuild skills to clarify loan setups, expenses, and risks plainly, with comparisons, visuals, and notices aiding owners in grasping compromises and deciding confidently.
Converting jargon to plain speechExplaining APR, charges, and full expenseDescribing prepayment and finesClarifying personal risk and assurancesEmploying comparisons and basic visualsLesson 3Arranging Working Capital Solutions: Duration, Repayment, Interest-Only Phases, Balloon Payments and Condition ExamplesLearn designing working capital setups, including duration, repayment, interest-only phases, balloons, and conditions, matching payback to cash flows while safeguarding lender and borrower.
Matching duration to cash cycleRepayment schedules and choicesInterest-only and step-up setupsBalloon payments and refinance hazardsUsual financial and reporting conditionsLesson 4SBA Loan Schemes: Qualifications, Application Steps, Guarantee Setup, Approval Schedules and Pros/ConsGrasp main SBA loan schemes like 7(a) and 504, qualification rules, guarantees, charges, schedules, and pros/cons, to spot when SBA suits small business clients best.
Overview of primary SBA schemesQualification rules and barred usesGuarantee setup and lender riskApplication steps and schedulesPros, cons, and frequent pitfallsLesson 5Common Small Business Loan Types: Term Loans, Credit Lines, SBA 7(a)/504, Merchant Cash Advances, Invoice Funding, and Online Short-Term LoansExamine main small business loan types from term loans and credit lines to SBA, merchant advances, invoice funding, and online short-term loans, pairing each to needs and risk tiers.
Term loans and equipment fundingRevolving credit line basicsSBA 7(a) and 504 applicationsMerchant cash advances detailedInvoice and receivables fundingOnline short-term working capitalLesson 6Online and Alternative Lenders: Pace, Usual Rates, Charges, and Typical Borrower FitsExplore online and alternative lender workings, including funding speed, pricing, charges, risk tolerance, and targeted borrowers, to responsibly position these for clients.
Funding pace and application flowsUsual APR ranges, charges, and extrasRisk models and data usedIdeal borrower fits and applicationsWarning signs and exploitative setupsLesson 7Personal vs Business Credit: When Personal Assurances Needed and ImplicationsClarify personal vs business credit differences, when personal assurances required, evaluation methods, and legal, financial, relationship effects for owners and co-signers.
Business credit reports and scoresPersonal credit elements lenders checkWhen assurances typically neededAssurance setups and exemptionsDefault effects on assurersLesson 8Standard Approval Criteria for Business Loans: Business Duration, Revenue, Cash Flow, Debt Service Coverage Ratio (DSCR) and SecurityReview core approval criteria for business loans like business duration, revenue, cash flow, DSCR, security, and sector risk, and how lenders balance strengths/weaknesses.
Business duration and stability checksRevenue scale, trends, and seasonal effectsCash flow coverage and DSCR checksSecurity valuation and lien statusSector, management, and characterLesson 9Risk Pricing and Interest Rate Influences for Small Business Loans (Credit Risk, Duration, Security, Sector)Understand lender pricing of small business credit, with risk ratings, duration, security, sector, and market factors driving rates, charges, and conditions across products.
Risk ratings and pricing frameworksDuration length and yield aimsSecurity quality and loan-to-valueSector risk and cycle effectsMarket standards and rivalryLesson 10Reviewing Business Financial Reports: Profit & Loss, Balance Sheet, Cash Flow Reports and Key Ratios for Repayment CapacityLearn reading profit/loss, balance sheet, cash flow reports, computing key ratios, and trend interpretation to assess repayment ability and spot issues pre-submission.
Reading the profit and loss reportKey balance sheet items for lendersCash flow report and adjustmentsCore ratios: DSCR, leverage, liquidityTrend review and adjustments
