FullyFundable

10/02/2024

Is your business...?

09/26/2024

If you want to know the impact of our concierge funding services to help entrepreneurs get access to much-needed capital, despite multiple challenges with previous lenders, check out what my awesome client, Julia Lundstrom of Simple Smart Science has to say about working with me!

Interested in funding to fuel and support your business growth, pay off commercial debt, or acquire a business?Schedule an intro call with us: http://fullyfu...

09/23/2024

At FullyFundable we help established growth-focused entrepreneurs ensure they never run out of working capital, to fuel and support the growth of their business, whether through debt, equity, grant, and/or a multitude of organic funding strategies, through what we call The Infinite Funding Framework.

Does that appeal to you?

09/23/2024

A $500,000 SBA loan right now requires a monthly payment of just $6,817, with less than $53,000 of interest expense in the first 12 months.

Could you multiple $500k into a lot more than $53k within 12 months through certain marketing/advertising campaigns, hiring new employees/contractors/agencies, tech upgrades, innovation, expansion, etc?

If you're an established growth-focused entrepreneur, I would hope your answer is a resounding YES!

So, why not apply that type of LEVERAGE in your business to accelerate, amplify, and support growth, while preserving your own cash and building liquidity for future opportunities and emergencies that cannot be funded with debt (OPM - other people's money)?

By the way, $500k is the sweet spot for SBA loans in that it's the most you can get without the most intrusive requirements like pledging personal residence as collateral, having to add the lender to your life insurance policy, etc.

And, you only need $95,000+ in net profit to qualify from a DSCR (Debt Service Coverage Ratio) standpoint.

Who's ready for leveraged growth?!

08/22/2024

If you sell any kind of high ticket service to established business owners that helps them grow (training/coaching/consulting or done-for-you services related to marketing, advertising, sales, staffing, tech, etc.) and ever get financial objections, we should talk about a professional alliance.

We secure millions of dollars in supplemental working capital for entrepreneurs throughout each year, which they use to fund those exact things... and most would NOT have been able to invest in those things without a loan or line of credit.

Therefore, the only hurdle blocking many of you from converting many more prospects into high ticket clients would be cleared with the cash we can get for them - TO PAY YOU!

Let's gooooooooo!

08/20/2024

FYI one of the top "Use Of Funds" small business owners list on their SBA loan applications is for hiring/staffing. I'm baffled more growth-focused entrepreneurs aren't all over this.

The SBA allows you to allocate 6 months of salary/benefits/bonus income toward your loan request. The positions and numbers listed are just part of your PLAN, but will not be verified by the lender or SBA after the loan closes, unless you default.

E.g. Hiring a Chief Marketing Officer
- $150k base salary
- $50k benefits (a commonly cited rule of thumb is that the total cost of an employee, including benefits, is typically 1.25 to 1.4 times the salary)
- $150k projected bonus
======
$350k total

$175k (6 months can be allocated)

How many additional team members would you hire if you could leverage outside capital to do so?

Pro Tip: $500k is the sweet spot for SBA loans of growing companies doing at least $100k in net profit per year. It's the most amount you can get without the more intrusive requirements of the SBA and lenders, such as pledging personal real estate as collateral, adding the lender to your life insurance policy, and even more documentation.

For $500k you could potentially fund the hiring of $1M of new employees in your company to fuel and support growth.

Other common and viable Uses of Funds:
- General Working Capital
- Marketing & Advertising
- Research & Development
- Business Travel/Education/Training
- Debt refinancing/consolidation
- Commercial real estate purchase/refi (if 51%+ owner-occupied)

Uses you want to avoid/reposition (DM me if you want to know why, but it involves much more red tape with loan processing)
- Inventory purchases
- Equipment purchases

Anyone ready for an infusion of additional capital for any of the above initiatives, activities, or assets?

With the state of the economy only becoming more uncertain as we approach Election season, it's definitely a smart idea to preserve and build you own cash reserves, and leverage OPM (other people's money) to fund all of the new projects and opportunities in your plan for 2024 Q4, and 2025.

Let me know if you want to see what's possible for your business!

08/14/2024

In my professional opinion, if you own a growth-focused company but don't have at least 6 (ideally 12) months of liquidity/cash reserves in this type of uncertain economy, it would be in your best interest to leverage outside capital (OPM) to fuel and support growth, while retaining and building-up your company's cash reserves/liquidity (for future and sudden emergencies or opportunities).

08/11/2024

Any of my entrepreneur pals in the US or Canada interested in seeing what's possible in substantial grant funding (aka FREE MONEY!) for your business?

I've recently partnered with a group that has raised more than $5 BILLION in grant funding for small businesses in North America, and I'm now making that resource available to all of our clients.

They can help you go for one grant, or continually help you request grants for the rest of your business life, and new funds become available daily from government agencies, non-profits, and large corporations. It's a virtually bottomless vault of cash!

1. Short inquiry form
2. Free assessment, initial research, and match-rate analysis
3. If 95%+ match-rate, you pay a nominal fee to cover the hard costs of grant-writing
4. You pay a relatively small performance fee as a percentage of all the FREE money you get.

Trying to do this on your own would be a monumental undertaking, even if you knew exactly what you were doing and where to look for the best grants for your situation. Without that knowledge, it would be a lost cause.

Typically a business may expect to receive up to grants equaling one year of gross revenue, and more in subsequent years.

If you have any projects or initiatives in the following categories, this may be a viable opportunity for you:

1. Research and Development (R&D): Grants for innovative projects, product development, and technology advancement.

2. Exporting and International Trade: Grants to support small businesses expanding into new markets, exporting products, and increasing global competitiveness.

3. Sustainability and Energy Efficiency: Grants for projects focused on reducing energy consumption, implementing renewable energy solutions, and promoting sustainable practices.

4. Workforce Development and Training: Grants for employee training, upskilling, and reskilling programs.

5. Technology and IT: Grants for technology upgrades, digital transformation, and cybersecurity enhancements.

6. Marketing and Advertising: Grants for marketing campaigns, branding, and advertising initiatives.

7. Minority and Women-Owned Business Development: Grants to support minority and women-owned businesses, promoting diversity and inclusion.

8. Rural Business Development: Grants for businesses in rural areas, supporting local economic growth and development.

9. Disaster Relief and Recovery: Grants to help small businesses recover from natural disasters and other crises.

10. Innovation and Entrepreneurship: Grants for start-ups, innovative projects, and entrepreneurial ventures.

If this is of any interest to you (and/or any of your friends or business clients) feel free to DM me and I'll send you our inquiry form to start the process of determining your match-rate and possible grant options.

08/09/2024

New funding client (residential and commercial emergency cleanup and restoration services) applied for a $350k SBA working capital loan, but got pre-approved for $500k!

How would YOU allocate $500k (or even just $150k) in your business in the next 6-12 months??

P.S. Spare me the trite h00kers and bl0w comments!🤦

08/09/2024

M&A Funding Tip:

Analyze ALL potential acquisition deals as if they need to be SBA financeable even if you don't plan on using an SBA loan.

Why? Well, if a professional lender/bank won't fund the deal, with a 75% guaranty by the federal government, why should you?

They have more data on success and failure rates of business acquisitions than almost any one individual acquirer (unless you are a fairly large private equity firm).

The main challenge is, from my personal firsthand perspective, that the vast majority of business brokers/sellers don't offer prospective buyers the numbers/docs that actually matter to an SBA loan underwriter. E.g. These bankers don't even consider "SDE." And, most acquirers don't really know what to ask for to vet a deal properly and swiftly.

What they care about most is the net income reported on the last filed business tax return, and use that to calculate the Debt Service Coverage Ratio (DSCR). Any other numbers like T12, interim P&L, etc. are simply supplemental. In other words, a T12 or P&L can only hurt a deal (if lower than the net/ordinary income on tax return), and never enhance it.

And then there is the subject of add-backs. Oy vey. 99% of proposed add-backs are not viable at all, and that's why SDE isn't even considered by banks, and most businesses for sale never get sold. Unrealistic expectations and claims.

Most deals, once add-backs are properly factored, fail because the true net income number isn't nearly enough to support a loan to buy the business (i.e. the business is over-priced).

In the sub-$5,000,000 business sale realm, 50-80% of all business acquisitions are financed with an SBA loan. The only other methods of finance in this range are seller financing and cash.

Sure, there are a small number of deals that get financed by local community banks with non-SBA portfolio loans, but these deals must fit into a pretty narrow box and by located in that community bank's limited geographic footprint.

To clarify, the cash portion I mentioned above may be the buyer's cash or that of an equity partner they bring in to fund some or all of the transaction.

And, most business owners willing to seller finance more than 10-20% are highly motivated to sell for reasons that should be considered a red flag. It's one thing if the seller is distressed, but often times it just means the business is a lemon, and not worth the value-add opportunity it's being pitched as.

So... if you ever want help with "fundability" due diligence on deals, including but not limited to effectively vetting proposed add-backs, overall financials, post-acquisition fundability and profit optimization, feel free to reach out!

P.S. If you are apprehensive about using an SBA loan to finance an acquisition because of the timeframe (~60 days), just know that you should probably be taking that much time, yourself, to properly conduct DD, even if you're using cash and seller financing. Plus, most of the reason for that time frame has to do with delays by the seller and/or broker, so you'll encounter them regardless of how you finance the deal. It's just that a good bank isn't going to relent and overlook those red flags, so why should you??

06/27/2024

NEW E-COMMERCE FUNDING SOURCE/TYPE

I just secured an exciting new partnership with a lender that specializes in funding established e-commerce brands (including ones with CBD sales of 50% or less of total sales), which does things much differently than funding programs by Shopify Capital, PayPal Capital, and even lesser appealing MCA lenders.

These rates seem to be substantially lower than those.

For now, I'm referring to this program as "Full eFunded." This is for PHYSICAL product sellers only.

They have funded up to $9M to a single borrower, but on average more like $1M-$3M.

You get approved for a certain total credit facility -- e.g. $1,000,000 -- and then they help you build a funding growth plan that spells out when you can draw smaller amounts for each specific use (inventory, supplies, equipment, marketing/advertising, etc.), at certain amounts and intervals.

So, it's like a line of credit with a specific plan of deployment.
Acceptable uses of proceeds are mostly related to paying various parties in your supply chain, including but not limited to product suppliers, logistics, warehousing, marketing/ad agencies

Features:
- Fast processing (typically 5 business days or less)
- No personal credit check or PG (personal guarantee)
- Application takes just minutes and syncs up with your primary platform(s) for qualification and approvals.

FAQs

Who is eligible for Full eFunded?

Full eFunded works with online businesses in the United States or businesses with a US business entity (except dropshipping). We can help you take your operations and growth to the next level if your store has been in operation for at least 6 months, you have an annual revenue of $100,000 or more, and your average monthly revenue is at least $8,000 for the last three months.
(Please note: they don’t fund drop-shipping)

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Which platforms does Full eFunded support?

Currently, Full eFunded supports experienced private label and wholesale sellers on Amazon, Shopify, eBay, BigCommerce, WooCommerce, and Wix (Please note that the list is dynamic and subject to change.)

------------------------------------------

How does the remittance process work?

Each client has their own tailor-made remittance plan. You will remit according to a personalized schedule based on the amount of funding in your Growth Plan as well as sales projections. You can request changes to your remittance schedule if sales take off or slow down significantly.

------------------------------------------

How much capital can I receive?

Unlike other financing solutions, they don't set a limit on the amount of funding provided to eCommerce sellers. You know your business better than us, so we want you to tell us how much funding you need. Then, our team will take a thorough look at the numbers, validate your ambitious goals, and build you a personalized Growth Plan to help you reach your goals.

------------------------------------------

How much does this type of funding cost?

The cost is fixed, so you know how much your plan will cost from the very beginning. Most sellers remit between $6,000 – $10,000 for every $100,000 included in their Growth Plan.

------------------------------------------

If this piques your interest, comment below and/or shoot me a DM, and I'll get you plugged in right away!

06/26/2024

NEW E-COMMERCE FUNDING SOURCE/TYPE

I just secured an exciting new partnership with a lender that specializes in funding established e-commerce brands (including ones with CBD sales of 50% or less of total sales), which does things much differently than funding programs by Shopify Capital, PayPal Capital, and even lesser appealing MCA lenders.

For now, I'm referring to this program as "Full eFunded"

They have funded up to $9M to a single borrower, but on average more like $1M-$3M.

You get approved for a certain total credit facility -- e.g. $1,000,000 -- and then they help you build a funding growth plan that spells out when you can draw smaller amounts for each specific use (inventory, supplies, equipment, marketing/advertising, etc.), at certain amounts and intervals.

So, it's like a line of credit with a specific plan of deployment.

Acceptable uses of proceeds are mostly related to paying various parties in your supply chain, including but not limited to product suppliers, logistics, warehousing, marketing/ad agencies

Features:
- Fast processing (typically 5 business days or less)
- No personal credit check or PG (personal guarantee)
- Application takes just minutes and syncs up with your primary platform(s) for qualification and approvals.

FAQs

Who is eligible for Full eFunded?

Full eFunded works with online businesses in the United States or businesses with a US business entity (except dropshipping). We can help you take your operations and growth to the next level if your store has been in operation for at least 6 months, you have an annual revenue of $100,000 or more, and your average monthly revenue is at least $8,000 for the last three months.
(Please note: they don’t fund drop-shipping)

------------------------------------------

Which platforms does Full eFunded support?

Currently, Full eFunded supports experienced private label and wholesale sellers on Amazon, Shopify, eBay, BigCommerce, WooCommerce, and Wix (Please note that the list is dynamic and subject to change.)

------------------------------------------

How does the remittance process work?

Each client has their own tailor-made remittance plan. You will remit according to a personalized schedule based on the amount of funding in your Growth Plan as well as sales projections. You can request changes to your remittance schedule if sales take off or slow down significantly.

------------------------------------------

How much capital can I receive?

Unlike other financing solutions, they don't set a limit on the amount of funding provided to eCommerce sellers. You know your business better than us, so we want you to tell us how much funding you need. Then, our team will take a thorough look at the numbers, validate your ambitious goals, and build you a personalized Growth Plan to help you reach your goals.

------------------------------------------

How much does this type of funding cost?

The cost is fixed, so you know how much your plan will cost from the very beginning. Most sellers remit between $6,000 – $10,000 for every $100,000 included in their Growth Plan.

------------------------------------------

If this piques your interest, comment below and/or shoot me a DM, and I'll get you plugged in right away!