financing your business
FINANCING YOUR BUSINESS Ryan Bozell | Vice President Business Banking – SBA Lending | The Huntington National Bank | 45 N Pennsylvania, Suite 300, Indianapolis, IN, 46204 | Office (317) 237-2593 | Cell (317) 345-7340 | Fax (877) 719-9093 [email protected] October 9, 2014 1
Welcome to Huntington • Established in 1866 • 28th largest domestic bank in the U.S. (based on assets) with $56 billion in assets • Headquartered in Columbus, Ohio • Serving Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia with more than 11,800 colleagues, 700 branches and more than 1,300 ATMs • The #1 SBA 7(a) lender in Huntington’s six-state region and #1 SBA lender nationally* based on number of loans for the SBA • American Banker named Chairman, President and CEO Steve Steinour “Banker of the Year” in its “Best in Banking 2012” issue • Named one of MONEY® Magazine Best Banks in America for the second straight year. • Ranked “Highest in Customer Satisfaction with Small Business Banking” according to J.D. Power and Associates *Huntington is the #1 SBA lender in the region made up of Indiana, Kentucky, Ohio Michigan, West Virginia, & Western PA. Source: U.S. Small
Business Administration (SBA) from October 1, 2008 through December 31, 2012. Third largest lender in the U.S. in number of loans, per U.S. SBA, March 31, 2011 through December 31, 2012. From MONEY Magazine, October 2012 © 2012 Time Inc. MONEY is a registered trademark of Time Inc. and is used under license. MONEY and Time Inc. are not affiliated with, and do not endorse products or services of, Licensee . Huntington Bank received the highest numerical score in the proprietary J.D. Power and Associates 2012 Small Business Banking Satisfaction Study(SM). Study based on 7,246 total responses, measuring 25 financial institutions and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in August– September 2012. Your experiences may vary. Visit jdpower.com
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WHAT FACTORS DOES HUNTINGTON CONSIDER WHEN REVIEWING A BUSINESS LOAN?
• Capacity – global cash flow • Capital – company or personal equity, • Collateral • Other Conditions (economic environment, competition, competitive advantage) • Character (personal and business credit, education, experience)
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SBA LOANS BENEFITS
• The SBA 7a program is an “Opportunity” product in that it provides the opportunity to qualified borrowers for: – Higher leverage financing / less money down – Longer, fully amortizing, terms than are available conventionally – The potential to rely on less collateral than a conventional loan typically can provide – The ability to provide financing to qualified borrowers in riskier industries or with higher risk property types
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SBA LOANS
CURRENT USES OF SBA 7A LOANS AT HUNTINGTON • Up to 90% financing for purchase, refinance, or construction of commercial real estate • Up to 80% financing for Special Purpose Properties (where financing is often not available via conventional loans • Up to 80% financing for acquisition of an existing business • Balance sheet re-structuring allowing for longer terms on existing debt by blending loan terms based upon the useful life of the assets of the company • Turnaround financing programs for existing companies that do not qualify under conventional lending programs
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SBA LOANS
ITEMS TO CONSIDER • Potential processing delays if not dealing with a Preferred Lender like Huntington – Working with a Preferred Lender can accelerate the approval timeframe
• SBA fees are slightly higher than standard conventional loans – Typically they can be financed in the loan
• Any owners of the business over 20% are typically required to guarantee • In certain cases, personal collateral may be required if determined “available” by SBA definition • SBA loans are subject to credit approval and SBA eligibility 7
WHAT STEPS SHOULD YOU TAKE WHEN SECURING A LOAN? • Provide the Bank a complete financial package. • Develop a relationship with a banker. Gain advice on how to best proceed. • Be open about what your needs are today and in the future. What are my plans? What will I need to grow? • Work to provide high quality financial statements.
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Welcome to Huntington • Established in 1866 • 28th largest domestic bank in the U.S. (based on assets) with $56 billion in assets • Headquartered in Columbus, Ohio • Serving Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia with more than 11,800 colleagues, 700 branches and more than 1,300 ATMs • The #1 SBA 7(a) lender in Huntington’s six-state region and #1 SBA lender nationally* based on number of loans for the SBA • American Banker named Chairman, President and CEO Steve Steinour “Banker of the Year” in its “Best in Banking 2012” issue • Named one of MONEY® Magazine Best Banks in America for the second straight year. • Ranked “Highest in Customer Satisfaction with Small Business Banking” according to J.D. Power and Associates *Huntington is the #1 SBA lender in the region made up of Indiana, Kentucky, Ohio Michigan, West Virginia, & Western PA. Source: U.S. Small
Business Administration (SBA) from October 1, 2008 through December 31, 2012. Third largest lender in the U.S. in number of loans, per U.S. SBA, March 31, 2011 through December 31, 2012. From MONEY Magazine, October 2012 © 2012 Time Inc. MONEY is a registered trademark of Time Inc. and is used under license. MONEY and Time Inc. are not affiliated with, and do not endorse products or services of, Licensee . Huntington Bank received the highest numerical score in the proprietary J.D. Power and Associates 2012 Small Business Banking Satisfaction Study(SM). Study based on 7,246 total responses, measuring 25 financial institutions and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in August– September 2012. Your experiences may vary. Visit jdpower.com
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3
WHAT FACTORS DOES HUNTINGTON CONSIDER WHEN REVIEWING A BUSINESS LOAN?
• Capacity – global cash flow • Capital – company or personal equity, • Collateral • Other Conditions (economic environment, competition, competitive advantage) • Character (personal and business credit, education, experience)
4
SBA LOANS BENEFITS
• The SBA 7a program is an “Opportunity” product in that it provides the opportunity to qualified borrowers for: – Higher leverage financing / less money down – Longer, fully amortizing, terms than are available conventionally – The potential to rely on less collateral than a conventional loan typically can provide – The ability to provide financing to qualified borrowers in riskier industries or with higher risk property types
5
SBA LOANS
CURRENT USES OF SBA 7A LOANS AT HUNTINGTON • Up to 90% financing for purchase, refinance, or construction of commercial real estate • Up to 80% financing for Special Purpose Properties (where financing is often not available via conventional loans • Up to 80% financing for acquisition of an existing business • Balance sheet re-structuring allowing for longer terms on existing debt by blending loan terms based upon the useful life of the assets of the company • Turnaround financing programs for existing companies that do not qualify under conventional lending programs
6
SBA LOANS
ITEMS TO CONSIDER • Potential processing delays if not dealing with a Preferred Lender like Huntington – Working with a Preferred Lender can accelerate the approval timeframe
• SBA fees are slightly higher than standard conventional loans – Typically they can be financed in the loan
• Any owners of the business over 20% are typically required to guarantee • In certain cases, personal collateral may be required if determined “available” by SBA definition • SBA loans are subject to credit approval and SBA eligibility 7
WHAT STEPS SHOULD YOU TAKE WHEN SECURING A LOAN? • Provide the Bank a complete financial package. • Develop a relationship with a banker. Gain advice on how to best proceed. • Be open about what your needs are today and in the future. What are my plans? What will I need to grow? • Work to provide high quality financial statements.
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