In this conversation with Ami Kassar, the Founder of Multifunding and an expert in SBA loans, listeners gain key insights into financing strategies essential for entrepreneurs. Ami stresses the importance of knowing your financial story to choose the right debt options and avoid unwanted equity dilution. The discussion also highlights the critical need for financial literacy to make informed projections and manage cash flow effectively. Furthermore, the balance between using debt wisely versus equity for growth is explored, offering valuable advice for sustainable success.
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Ryan's Funding Struggle Post-Crisis
Ryan Tansom shares his struggle securing funding post-2009 financial crisis through interviews with 17 different banks.
He lacked guidance on SBA loans and was forced to sell the family business as a result.
insights INSIGHT
Debt as Investment Banking
Multifunding acts like investment bankers for debt, focusing on entrepreneurs' stories and financial needs.
They aim to match business goals with the right debt options to avoid equity dilution.
volunteer_activism ADVICE
SBA Loans Focus and Variety
Entrepreneur-run, owner-operated businesses are the main focus of SBA loans, which Multifunding uses about 95% of the time.
SBA loans come in many flavors, and selecting the right one is critical.
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In an era where entrepreneurship is booming, financial literacy becomes a cornerstone for success. This podcast, I talk to Ami Kassar, an expert in business financing, who shares invaluable insights into the world of debt markets, particularly focusing on SBA (Small Business Administration) loans, and the crucial role of financial literacy in entrepreneurial ventures.
THREE BIG IDEAS FROM THE INTERVIEW:
Understanding Different Debt Options: It's crucial for business owners to understand their financial stories and needs. Ami emphasizes the importance of knowing the debt markets and selecting appropriate financing options, such as SBA loans, to retain control and avoid equity dilution.
Financial Literacy and Forecasting: The podcast highlights the lack of financial literacy among many entrepreneurs. A key takeaway is the need for a well-thought-out financial forecast and projection, allowing business owners to make informed decisions about their cash needs and financing options.
The Right Use of Debt and Equity: The discussion sheds light on the appropriate use of lines of credit (for emergencies and operational needs) versus term debt (for investments in growth). Additionally, the conversation stresses the importance of understanding the differences between equity and debt, especially in terms of control and decision-making in the business.
PODCAST INTERVIEW QUOTES:
04:14 - “We work with business owners and entrepreneurs to try and understand their stories, to try and frame and get a clearer concept of what's going on and what their needs are to achieve their goals.” - Ami Kassar
07:17 - “SBA lending as a whole has a branding problem..” - Ami Kassar
14:28 - “Our whole mantra or culture or values here, or treat an entrepreneur like we want to be treated. I had my lights turned off a couple of times building my company. I don't want that to happen to anybody else if they can possibly help it.” - Ami Kassar
18:54 - “What I always say to people is slow that down. Slow down. Take a breath. What are we trying to fulfill here? What are we trying to accomplish?” - Ami Kassar
37:37 - “My credit in my opinion is like an insurance policy. I don't care if you never touch it. It's fine with me if you never touch it but it should be there.” - Ami Kassar
38:33 - “You never will be in a situation, if you can possibly help it, where a lender smells blood and desperation.” - Ami Kassar
INTENTIONAL GROWTH™ RESOURCES:
Intentional Growth™ Podcast Archives: Archive of 356+ episodes and counting. Get access to the entire library HERE. We'll be adding a searchable tagging feature later on this year.
IG Financial Scorecard: Get your Intentional Growth™ Score that grades you on how well you are viewing - and running your business like a financial asset. Get your results and 5 case study videos HERE.
Intentional Growth™ Academy: 71 Videos, 9.5 hours of content, 20+ exercises. $995 for subscribers [normally $1,495] HERE
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