Introduction

Torrey WoodChief Executive Officer

M&A Financial Group LLC

The Benefits of using a Financial Intermediary

• Introduction

• What is a financial intermediary?

• Funding Process

• Do I need a financial intermediary?

• Challenges of obtaining small business financing

• Benefits of financial intermediary

• Package Your Deal

• Testimonial

• Q&A

What is a financial intermediary?

A financial intermediary works with borrowers to determine their need for financing. The “FI” helps qualify the borrower for various commercial and industrial loans in the marketplace that the borrower may not have been aware of due to the vast resources the “FI” has in the commercial lending space. Most traditional banks will not provide alternatives that may better suit the borrower.

5 Step Funding Process

Do I need a financial Intermediary?

Identify Lending Sources

• Lending Requirements

• Sweet Spot

• Financing Options

• Credit Requirements

Poll Question #1

1. When should you reach out to a financial intermediary?

A. When your client needs a small business loan.

B. When your client has been declined from lender.

C. When you don’t know which lender to apply to.

D. All the above

Challenges of obtaining business financing

Increased Regulations

• Regulatory Overhang

• Greater focus on borrower’s income and assets (DSCR 1.25)

• Reduction in loan-to-value thresholds, increasing the amount of equity businesses need for new loans

• Higher personal credit thresholds (higher credit scores)

• Higher collateral requirements

Downturn in Community Banking

• Recession

• Dodd Frank-Wall Street Reform & Consumer Protection Act (2010)

• Loss of Market Share

Downturn In Community Banking

Poll Question #2

2. There was a downturn in community banking as a result of Dodd Frank.

A) True

B) False

Less Profit on Smaller Loans

• It doesn’t make financial sense for banks to provide smaller loans.

• 80% of small businesses apply for loans 500k or less.

• It costs banks just as much to underwrite a $1 million dollar loan as it does a $100,000 loan.

Source: www.hbs.edu

Less Profit on Smaller Loans

Benefits of a Financial Intermediary

Best Rates & Terms

Financing Options

Account Receivable FinancingAsset Based Lending

Business Acquisition FinancingCommercial Real Estate Financing

Debt RefinanceEquipment Financing

SBA LoansSecurities Based LendingUnsecured Lines of Credit

Lender Relations

• Funding Range 25K-20m

• Financing Nationwide

Negotiate

• Interest Rates

• Terms

• Down Payment

• Fees

Deal Management

• Manage deal flow

• Advocate on client's behalf

• Follow Up

Alternative Financing

• Factoring

• Securities Based lending

• Unsecured Business Finance Program

Package Your Deal

• Submit Documentation Once

• Present Deal to Lender

• Tell Your Story

Poll Question #3

3. What are some benefits of using a financial intermediary?

A. Negotiate rates and terms.

B. Manage your deal flow

C. Match you with the right lender

D. All the above

Testimonial

Testimonial

• Trucking Company

• 2.3m

• Equipment refinance

Testimonial

• Gymnastics Facility

• 160k

• Unsecured term Loan

Testimonials

• Seltzer Brewery

• Start-up Loan

• 700k SBA Loan

Recommendation from First Bank

5-star Google review from Newton CPA PLLC

Services We Offer

Account Receivable FinancingAsset Based Lending

Business Acquisition FinancingCommercial Real Estate Financing

Debt RefinanceEquipment Financing

SBA LoansSecurities Based LendingUnsecured Lines of Credit

What Are You Going to do?

Contact Us today!!

M&A Financial Group L.L.C888.811.3645

torrey@mafinancialgrp.comwww.mafinancialgrp.com