Alternate Funding for Startups with Greg Roberts, The Roberts Consulting Agency

Alternate Funding for Startups with Greg Roberts, The Roberts Consulting Agency

Alternate Funding Business Entry

Gregory explained how he entered the alternate funding space while working with a firm that helped launch CPA businesses. He noticed that business owners consistently requested funding as their primary need, but traditional banking options were insufficient as 98% of banks avoid lending to startups. This observation led him to research and partner with vetted funding companies to start his own alternate funding business.

Alternative Startup Financing Structures

Gregory explained that when banks reject loans for startups, alternative financing structures can help by dividing the risk across multiple companies, allowing for 0% financing over 24 to 42 months with a monthly 1% fee. He noted that even long-term banking customers are often rejected for business loans despite approval for personal loans like car financing.

Flexible Loan Terms Discussion

Gregory explained that the loan offers flexibility compared to traditional loans with strict terms, featuring a 1% interest rate over 24 months with the option to renew or roll into a permanent loan. Mary expressed surprise at the fixed interest rate, and Gregory clarified that if the borrower chooses standard payments, they would move to typical bank or credit card interest rates.

Startup Loan Application Requirements

Gregory explained that for startup loan applications, he typically requires six months of business bank statements to assess business activity and may consider the individual's personal credit if the business is new but generating income. He emphasized that alternative financing should be flexible, particularly for businesses with large orders or predictable income streams, noting that this approach has worked well in cases where businesses have pre-orders or established vendor relationships.

Startup Consulting Loan Services

Gregory explained that his consulting agency provides startup loans similar to a line of credit with a flat fee structure, without taking ownership of the companies. He clarified that they charge a normal across-the-board fee that is tax deductible for the business owners. Gregory mentioned starting this service in September 2021 and has helped many startups over the past five years.

Greg Roberts website: https://www.fundingyourway.biz/

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