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WELCOME TO THE SCORE HOUSTON TV[SCORE Houston (#08): "Banking – Access to Capital for Small Businesses"]
SERIES, THE ENTREPRENEUR JOURNEY WITH THE SCORE.AJA HOST RAUL VASQUEZ, A SCORE BUSINESS MENTOR.
FOR THE LAST 60 YEARS, A SCORE HAS BEEN SUPPORTING A SMALL BUSINESS BY PROVIDING FREE CONFIDENTIAL MENTORSHIP.
WE ARE DELIGHTED TO PARTNER WITH HOUSTON TV TO DEVELOP A SERIES WITH BUSINESS INSIDE TO SUPPORT YOUR ENTREPRENEUR JOURNEY.
IN THIS EPISODE, WE WILL DISCUSS ABOUT ACCESS TO CAPITAL FOR A SMALL BUSINESS OWNER, WHERE YOU HAVE THE OPPORTUNITY TO LEARN FOR EXPERT ABOUT THE PREPARATION NEEDED AND THE KEY TO BE SUCCESSFUL IN GETTING FUNDING TO GROW YOUR BUSINESS.
WELCOME BACK TO THE TODAY EPISODE ON ACCESS TO CAPITAL.
I AM YOUR HOST TODAY, I AMCOR MENTOR.
DO YOU KNOW THAT THE SMALL BUSINESS ARE THE BACKBONE OF THE US ECONOMY? AROUND 99.9% OF THE TOTAL BUSINESS IN THE US ECONOMY ARE A SMALL BUSINESS.
HOWEVER, ACCORDING TO A RESIDENT, STANFORD UNIVERSITY RESEARCH, ONLY 60% OF THE SMALL BUSINESS HAVE THE POSSIBILITY TO GET APPROVED FOR A LOAN.
AND IF YOU ARE PART OF THE HISPANIC COMMUNITY, THAT NUMBER GO DOWN TO 40%.
FORTUNATELY, TODAY, WE HAVE IN THE STUDIO TWO AMAZING GUESTS WITH A LOT OF EXPERIENCE.
SO I WOULD LIKE TO WELCOME TO MY FIRST TWO GUESTS, TWO GUESTS OF THE, THE EPISODE MONICA HILL FROM JP MORGAN CHASE WITH A LOT OF EXPERIENCE IN THE BANKING INDUSTRY AND ALSO IN REAL ESTATE.
AND MY FRIEND FROM COMERICA BAND EZ, WHO IS THE VICE PRESIDENT OF EVERYTHING RELATING TO THE HISPANIC COMMUNITY ACROSS THE COUNTRY.
THANK YOU FOR THE OPPORTUNITY.
UM, ON, ON THIS TOPIC, ON, ON ACCESS TO CAPITAL, MONICA AND ARIA, PROBABLY WE CAN ALL AGREE THAT THE BLOOD FOR ANY BUSINESS IS THE MONEY.
SO BASICALLY THE PROCESS TO ACCESS TO CAPITAL IS A VITAL PROCESS TO KEEP A LARGER BUSINESS, TO GROW YOUR BUSINESS.
WHAT ARE THE MAIN CHALLENGE THAT YOU HAVE FOUND WHEN SOMEBODY, WHEN ANY BUSINESS OWNER IS LOOKING ACCESS TO CAPITAL, ESPECIALLY IN THIS CONTEXT, THAT WE HAVE STILL SOME INFLATIONARY PRESSURE IN THE MARKET.
LET'S GONNA START WITH MONICA FIRST.
SO, UM, THERE'S SEVERAL THINGS THAT SEVERAL, IT'S, IT'S AN INTERESTING QUESTION THAT YOU'RE BRINGING UP.
AND, UM, I WOULD SAY THAT THE MISINFORMATION OR EVEN ENOUGH RESEARCH IS NECESSARY AND, UM, SOMETIMES, UM, NOT DONE ENOUGH.
AND SO THEY, THEY PEOPLE DO NOT SEARCH THE RIGHT OPTIONS FOR THEM, AND THEN THEY, IF THEY GET A DECLINE, UM, THEY TEND TO BE TO DECIDE THAT THEY'RE NOT GONNA BE ABLE TO GET THAT MONEY AND THEY DON'T RESEARCH FOR OTHER OPTIONS AND ALL THE OPPORTUNITIES THAT THEY HAVE.
UH, WHAT RESULT ON THAT SCENARIO, WELL, FIRST OF ALL, THANK YOU, RAUL, FOR HAVING US HERE.
IT'S REALLY IMPORTANT TO SHARE THIS INFORMATION, YOU KNOW, IN HANDLING THE EXTERNAL AFFAIRS AND, UH, THE NATIONAL, UH, HISPANIC BUSINESS DEVELOPMENT, UM, MANAGER AT COME AMERICA BANK, ONE OF, ONE OF OUR BIG FOCUSES, UM, YOU KNOW, BEING A FORCE FOR GOOD AND RAISING EXPECTATIONS IN THE COMMUNITY.
SO I BREAK IT DOWN INTO, WHEN YOU'RE TALKING ABOUT ACCESSING CAPITAL, FIRST WE HAVE TO TALK ABOUT ACCESS TO INFORMATION TO THE CAPITAL, RIGHT? AND SO ONE OF THE BIGGEST CHALLENGE AND BARRIER IS REALLY THAT INFORMATION.
UM, AND SO WHEN YOU WANNA BUILD THAT TRUST IN YOUR COMMUNITY MINDED, WELL, WE HAVE TO BE OUT IN THE COMMUNITY, UNDERSTAND WHAT THOSE NEEDS ARE, SO THAT THAT WAY WE CAN KIND OF REALLY LEVEL SET AND MAKE THE INFORMATION A ACCESSIBLE TO OUR COMMUNITIES.
SO THAT'S THE ONE, THE FIRST BARRIER.
THE SECOND, WE CAN TALK ABOUT THE MORE TECHNICAL ASPECT OF WHAT IT LOOKS LIKE TO BUILD THAT RELATIONSHIP WITH THE BANK, BUT WE CAN'T DO THAT IF WE'RE NOT BUILDING THAT INITIAL TRUST.
AND, UM, AND WITH THAT MEANS BEING OUT, UNDERSTANDING WHAT THOSE NEEDS ARE AND BREAKING DOWN THE INFORMATION.
SO AGAIN, BEFORE WE TALK ABOUT REALLY ACCESSING CAPITAL, WE PROVIDE THAT ACCESS TO INFORMATION ON
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HOW THAT CAPITAL IS BUILT AND HOW BUSINESSES CAN GROW FROM THAT INFORMATION.WOW, THAT, THAT IS A WONDERFUL INFORMATION BECAUSE DEFINITELY WE, THE IDEA HERE IS TO LEARN FROM OTHER EXPERIENCE.
SO LET ME CONNECT YOUR COMMENT, YOUR RELEVANT POINT OF VIEW WITH MY SECOND QUESTION.
SO IN YOUR OPINION, UH, MONICA, WHAT CAN BUSINESS DO TO BE BETTER PREPARED TO APPLY FOR ANY COMMERCIAL LOAN? SO IN ORDER TO APPLY TO, FOR ANY COMMERCIAL LOAN, THEY HAVE TO THINK ABOUT THE, UM, UH, POINTS THAT ANY LENDER IS GONNA LOOK AT, WHICH IS THE TH THE FOUR CS THAT THEY, UH, THAT EVERYBODY REFERS TO.
AND THAT IS CAPACITY, UH, WHICH INCLUDES CAPITAL, UM, CHARACTER, WHICH I THINK IS MY FAVORITE.
AND I'LL GO INTO EACH ONE OF THOSE, UH, RIGHT NOW AS WELL, UH, COLLATERAL AND, UH, CREDIT.
SO WHAT IS EACH ONE OF THOSE? SO IF YOU TALK ABOUT CAPACITY OR CAPITAL, YOU WANNA KNOW IF YOU'RE GONNA BE ABLE TO REPAY THIS LOAN.
SO WHEN YOU'RE THINKING ABOUT GETTING A LOAN, YOU, YOU NEED TO TAKE THIS INTO CONSIDERATION IN ORDER TO UNDERSTAND HOW MUCH YOU'RE ABLE TO ASK FOR, UM, INVEST, UH, ET CETERA.
SO CAN YOU PAY THIS BACK? AND THAT'S WHAT CAPACITY IS ABOUT CAPITAL, BECAUSE YOU HAVE TO ALSO INVEST INTO THIS, UH, BUSINESS YOURSELF AS WELL.
UM, AND, AND THE BANK WANTS TO SEE THAT THE BANK LENDER, YOU KNOW, IT DOESN'T HAVE TO BE A BANK NECESSARILY CHARACTER.
WHY DO I LIKE THIS SO MUCH? BECAUSE IT SAYS SO MUCH ABOUT THAT ENTREPRENEUR AND HOW THEY HAVE, UM, HOW THEY HAVE RUN THEIR BUSINESS, HOW THEY'RE GOING TO CONTINUE RUNNING THEIR BUSINESS.
AND THAT TELLS US A, A LOT ABOUT HOW THEY'RE GOING TO REPAY THE LOAN.
UM, AND THEN, UM, YOU HAVE THE COLLATERAL, UH, THERE'S ASSET BASED LENDERS OF COURSE, BUT EVEN THOSE CASHFLOW LENDERS, UH, THEY WILL CONSIDER COLLATERAL BECAUSE THAT'S A, LIKE A TERTIARY SOURCE OF REPAYMENT ANYHOW, SO COLLA COLLATERAL HAS, IS IMPORTANT ALSO.
AND THEN, UH, FINALLY, UH, THEY HAVE TO BE ABLE TO HAVE A HISTORY.
SO THE CREDIT PART, SO WHAT IS THEIR HISTORY? LIKE HISTORICAL FINANCIALS OR, UM, EVEN CREDIT BUREAUS FOR PERSONAL FIN FINANCES WOULD GIVE AN IDEA TO THAT LENDER.
SO THOSE FOUR C'S, IF YOU KEEP IT IN MIND, IT'LL GIVE YOU AN IDEA OF WHERE TO GO OR HOW TO DO.
ENA, WE HAVE NOW SHORT MINUTE, PLEASE, UH, TRY TO, TO SAY YOUR EXPERIENCE ON THAT, ON THE PREPARATION NEEDED FOR ANY BUSINESS OWNER THAT WANT TO APPLY FOR, FOR A LOAN.
YES, I WILL KEEP IT SIMPLE IN THE SENSE OF THE PREPARATION IS ABOUT, YOU KNOW, DO YOU UNDERSTAND YOUR FINANCIALS? DO YOU HAVE TWO TO THREE YEARS OF FINANCIAL STATEMENTS AND TAX RETURNS? UM, YOU HAVE TO BE PREPARED IF YOU'RE MAKING A PROFIT OR IF THERE IS A LOSS, UM, WHAT DOES THAT LOOK LIKE? AND MAKE SURE THAT, AGAIN, IT COMES, UM, TO, YOU KNOW, UM, AS MONICA SAID, BUILDING THAT CREDIT, UNDERSTANDING WHERE YOU ARE IN YOUR CREDIT, UNDERSTAND THAT THERE'S A BUSINESS CREDIT, BUT ALSO AS YOU'RE STARTING TO BUILD THAT CREDIT, THAT YOUR PERSONAL CREDIT ALSO COMES INTO LINE.
AND THIRD, THE IMPORTANCE OF BUILDING A RELATIONSHIP WITH A BANKER SO YOU CAN REALLY UNDERSTAND WHAT THE OFFERS, WHAT THE SERVICES ARE, SO THAT THAT WAY YOU CAN CREATE A SOLUTION FOR YOU THAT'S LONG TERM ABOUT WHAT YOUR BUSINESS NEEDS WILL BE.
WELL, THANK YOU LADY FOR YOUR INTERESTING COMMENT FOR THAT RELEVANT INFORMATION.
SO IT'S THE TIME FOR THE FIRST BREAK.
SO IN THE NEXT, UH, SEGMENT, WE WILL CONTINUE ABOUT ON ACCESS TO CAPITAL.
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2 1 1 3 1 1 9 1 1.FOR EMERGENCY ASSISTANCE SUCH AS AMBULANCE, POLICE, OR FIRE, THE FIRE HYDRANT IS GUSHING EVERYWHERE.
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I AM YOUR HOST, RAUL VASQUEZ, BUSINESS MENTOR AT THE SCORE HOUSTON.
AND WE ARE TALKING ABOUT TODAY ABOUT ACCESS TO CAPITAL FOR A SMALL BUSINESS OWNER.
IN THIS SEGMENT, I WOULD LIKE TO WELCOME MONICA HILL FROM JP MORGAN.
WE ARE GOING CONTINUE TALKING ABOUT ACCESS TO CAPITAL.
MONICA, WELCOME TO THE SHOW AGAIN.
IT'S VERY GOOD THAT WE'RE BEING ABLE TO SHARE ALL THIS INFORMATION.
THANK YOU SO MUCH FOR MAKING THE OPPORTUNITY AND THANK YOU MONICA.
MONICA, PROBABLY IN YOUR DAILY JOB, YOU HAVE FOUND THAT THE PROCESS TO ACCESS TO CAPITAL SOMETIMES IS CHALLENGE.
SO IN, IN YOUR OPINION, WHAT ARE THE TOP REASON WHY A BUSINESS OWNER IS DENIED A LOAN? SO THAT IS AN INTERESTING QUESTION.
UM, A LITTLE COMPLEX, UH, BECAUSE THERE ARE DIFFERENT TYPES OF LOANS AND DIFFERENT TYPES OF LENDERS, AND WE HAVE MENTIONED, UM, ALSO HOW, UH, SOMETIMES MISINFORMATION CAN LEAD TO, UH, MISUSING THE, THE, UH, TOOL OF DEBT.
SO, UM, THAT'S ALSO, UH, UH, ONE OF THE REASONS WHY PEOPLE ARE DENIED LOANS BECAUSE THEY'RE NOT, THEY'RE NOT THINKING ABOUT IT, THEY'RE NOT STRUCTURING IT CORRECTLY.
UM, AND THINKING ABOUT IT AS A TOOL.
SO, UM, UH, WHEN I MENTIONED THERE'S DIFFERENT TYPES OF LOANS AND DIFFERENT TYPES OF LENDERS.
MOST LENDERS WILL TRY TO ESTABLISH THREE TY THREE FORMS OF REPAYMENT.
AND THOSE PRIOR, THOSE SOURCES OF REPAYMENT WILL BE PRIORITIZED DIFFERENTLY DEPENDING ON THE TYPE OF LENDER THAT YOU, THAT YOU, UH, TALK TO AND DEPENDING ON YOUR STRENGTHS AS WELL.
SO, UM, AND WE CAN GO INTO THAT, BUT, UH, FOR MOST BANKS, THE PRIMARY SOURCE OF REPAYMENT IS CASH FLOW.
SECONDARY SOURCE OF REPAYMENT IS, UH, GUARANTOR AND TERTIARY SOURCE OF REPAYMENT IS COLLATERAL.
SO NOTICE HOW THAT COLLATERALS LAST.
AN ASSET BASED LENDER, ON THE OTHER HAND, WILL LOOK AT THE ASSET IN, IN A, A HIGHER PRIORITY THAN PERHAPS THAT CASH FLOW OR THE GUARANTOR.
THERE'S LOANS THAT DON'T EVEN HAVE GUARANTOR.
THEY, UM, THEY DON'T REQUIRE THAT.
THEY DON'T HAVE THAT REQUIREMENT.
SO IT COMPLETELY DEPENDS ON WHAT YOUR, WHAT LENDER AND LOAN YOU ARE LOOKING FOR.
THAT'S WHY IT'S SO IMPORTANT TO KEEP TALKING TO THOSE EXPERTS, WHETHER IT'S A BANK, A, C, D, FI, IF IT IS, GO INTO YOUR NETWORK AND TALK, GET INFORMATION, RESEARCH.
AND, UH, BUT TO ANSWER THE QUESTION, UH, VERY FAST TALKING FROM MY POINT OF VIEW, YOU'VE BEEN MENTIONING I WORK FOR JP MORGAN CHASE.
WE DO THINK THAT CASH FLOW IS, UM, VERY IMPORTANT.
AND THEN, UH, LEVERAGE IS, UM, DO NOT LEVERAGE OVER LEVERAGE YOURSELF OR THE BUSINESS.
SO, UH, JP MORGAN, UH, IS ABLE TO LEND MONEY INSECURE OR INSECURE OR, UH, YOU HAVE TO USE ANY COLLATERAL.
SO WE DO, UM, REQUIRE THOSE THREE SOURCES OF REPAYMENT.
UM, SO CASHFLOW BEING THE FIRST, THE PRIMARY SOURCE OF REPAYMENT, SECONDARY SOURCE OF REPAYMENT IS THE GUARANTOR.
SO IT IS NOT, UM, SO, SO WE HAVE THE GUARANTOR AND THE TERTIARY IS COLLATERAL, SO IT IS, IT DOES HAVE SECURITY.
SO ALWAYS YOU NEED, UH, COLLATERAL FOR YES.
TO DO A ANY SPECIFIC LOAN, CORRECT.
WELL, THAT, THAT IS AMAZING, MONICA.
SO THIS, UH, CONNECT ME WITH, UH, THE SECOND QUESTION.
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ME CHECK THE THE QUESTION ANGLE.SO YOU IDENTIFY SOME WEAKNESSES ABOUT, UM, A SMALL BUSINESS LOAN APPLICANT.
SO AT THIS TIME, WHAT ARE THE TRENDS THAT YOU NEED TO SEE IN ANY LOAN APPLICANT? YEAH, SO, UH, CAPACITY, UH, WE, WE TALKED ABOUT IN THE FIRST SEGMENT HOW WE HAVE THE FOUR CS AND PEOPLE CONSIDER IT FIVE CS EITHER WAY.
UM, I PUT CAPITAL AND CAPACITY TOGETHER, HOW MUCH CAPITAL YOU HAVE TO INVEST INTO YOUR COMPANY, AS WELL AS THE LOAN THAT, OR DEBT THAT YOU'RE ASKING OR REQUESTING FOR, UM, AND THE CAPACITY TO PAY IT BACK.
WHAT IS YOUR CAPACITY TO PAY BACK THAT LOAN? UM, AND THAT'S WHY I MENTIONED THAT PRIMARY SOURCE OF REPAYMENT BEING CASH FLOW.
CASH FLOW, THAT CASH THAT IS AVAILABLE TO MAKE PAYMENTS.
UM, AND HOW MUCH CAN YOU AFFORD IS THAT, UH, PRIMARY SOURCE OF REPAYMENT FOR MOST BANKS, UH, BUT DEFINITELY FOR MOST LENDERS.
UM, AND THEN THE SECONDARY SOURCE OF REPAYMENT GUARANTOR.
SO, UM, THE SBA FOR EXAMPLE, THEY CONSIDER CONSIDER GLOBAL, UH, DEBT SERVICE COVERAGE.
SO WHAT DOES THAT MEAN? IT INCLUDES THOSE GUARANTOR BUSINESS OWNERS OR ANYONE ELSE WHO IS CAPABLE OF, UM, HELPING SECURE THAT LOAN.
AND SO IN THERE, YOU COUNT THE BUSINESS CASH FLOW IN ADDITION TO, UH, PERSONAL, UH, CASH FLOW AND, AND, UH, AVAILABLE CASH.
AND THEN, UH, THE COLLATERAL SHOULD BE A LAST, A TERTIARY SOURCE.
WELL, THAT IS A WONDERFUL INFORMATION, MONICA.
AND THANK YOU FOR COMING TODAY.
WELL, THIS IS THE TIME FOR ANOTHER QUICK BREAK.
UH, IN THE NEXT SEGMENT, WE WILL CONTINUE TALKING ABOUT ACCESS TO CAPITAL.
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WELCOME BACK TO THE LAST SEGMENT ON ACCESS TO CAPITAL I AND YOUR HOST, RAUL VASQUEZ, AANA BUSINESS SCORE MENTOR.
TODAY WE ARE CONTINUE TALKING WITH OUR TWO SPECIAL GUESTS WITH MONICA HILL FROM JP MORGAN CHASE, AND WE SEEN ARIEL DONEZ FROM COMERICA VAN.
WELCOME LADIES TO THE SHOW AGAIN.
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AND ARIA, UH, PROBABLY YOU HAVE HEARD IN YOUR DAILY JOB THAT THERE ARE SOME MISCONCEPTION WITH BUSINESS OWNER WHEN THEY ARE LOOKING TO ACCESS TO CAPITAL IN THE SENSE THAT SOMETIME, SOMETIME THEY ARE AFRAID TO GET NEW DEBT FOR EXPANDING THEIR BUSINESS OR GET MORE ACCESS TO CAPITAL FOR GROWING THEIR BUSINESS.SO WHAT WOULD BE YOUR BEST ADVICE FOR THIS GUYS? UH, THIS GUY THAT ARE AFRAID TO GET MORE, MORE DEBT FOR THEIR BUSINESS? YES.
UM, I THINK FIRST OF ALL, IT'S REALLY IMPORTANT FOR THAT BUSINESS OWNER TO GO BACK INTO THEIR BUSINESS PLAN.
YOU KNOW, YOU'VE REALLY, THERE IS A REASON WHY YOU WROTE THAT BUSINESS PLAN.
YOU HAVE GOALS, UM, WHAT ARE YOUR PROJECTIONS? AND SO YOU ALWAYS WANNA MATCH WHATEVER YOUR NEXT STAGE OF GROWTH IS AND ALIGN THAT WITH YOUR BUSINESS PLAN.
SECOND, IN TERMS OF DEBT, IT CAN BE SCARY, HOWEVER, YOU KNOW, IT COMES BACK TO THE FIVE CS THAT WERE MENTIONED EARLIER.
AND THAT IS, YOU KNOW, ARE YOU ABLE TO TAKE ON THE NEXT, UM, LOAN AND WILL YOU BE ABLE TO REPAY IT? AND SO YOU DEFINITELY WANNA HAVE A HEALTHY DEBT RATIO AND YOU WANNA LEAVE IT AT LESS THAN 35%.
AND SO WHEN YOU'RE MATCHING THE, YOU KNOW, YOUR, AND KNOWING YOUR BUSINESS AND KNOWING LIKE YOUR FINANCIALS, YOU HAVE TO UNDERSTAND WHAT'S, WHAT'S COMING INTO THE BUSINESS, WHAT'S GOING ON.
UM, YOU KNOW, IF, DO YOU HAVE MAYBE A NEW GOAL OF INCREASING REVENUE, 15%, HOW ARE YOU GOING TO ACCOMPLISH THAT? AND SO IS REALLY THE, THE DEPTH THAT YOU'RE WANTING TO TAKE ON GOING TO HELP IN THAT ADDITIONAL LEVEL OF GROWTH.
AND, AND IT COMES DOWN TO KNOWING WHERE YOU ARE, KNOWING WHERE YOU WANNA GET, AND, UH, THE APPETITE, WHAT WE CALL THE RISK APPETITE AND THE DEV RATIO THAT COMES WITH THAT.
AND, AND BEING COMFORTABLE, UM, COMES IN DIFFERENT FORMS. BEING COMFORTABLE IS UNDERSTANDING YOUR FINANCIALS SECOND AND KNOWING WHAT YOU CAN REALLY TAKE ON.
UH, AND THIRD, DOES IT REALLY MAKE SENSE FOR YOU TO TAKE ON THIS LOAN DEPENDING ON YOUR TRAJECTORY, YOUR GROWTH TRAJECTORY? IS IT MORE ABOUT BRINGING MORE REV REVENUES? UM, A LOT OF THE WORK THAT WE DO IN EDUCATIONAL WORKSHOPS WITH THE COMMUNITY IS BASICALLY THAT IT'S, IT'S ABOUT PREPARATION NOW SO YOU CAN BE READY FOR YOUR TOMORROW.
AND A LOT OF OUR BUSINESSES CAN BE INTIMIDATED BECAUSE THERE'S A LOT OF TECHNICAL INFORMATION THAT COMES WITH ACCESS TO CAPITAL.
BUT REALLY IF WE CAN BRING THAT DOWN TO THE LEVEL OF WHAT IS YOUR BUSINESS ABOUT? WHAT ARE YOU WANTING TO ACHIEVE? DOES IT MAKE SENSE NOW? AND THEN AS YOU'RE PLANNING OUT, YOU KNOW, YOUR TWO, THREE YEARS AND THEN FURTHER DOWN, WHAT DOES IT LOOK LIKE FOR YOU TO BE PREPARED FOR THAT NEXT STAGE? AND THAT'S WHERE REALLY I WANNA HONE IN, IN, IN THIS MESSAGE THAT IT'S NOT ABOUT WHETHER, DO YOU HAVE EVERYTHING NOW TO BE READY, BUT WHERE CAN YOU TAP INTO RESOURCES AND KNOW THAT BANKS DEPLOY, YOU KNOW, ITS BANKERS OUT FOR THE WELLBEING, FOR THE UNDERSTANDING AND THE HELP AND UNDERSTANDING WHAT THESE CONCEPTS ARE.
SO WOW, THAT, THAT IS, UH, AMAZING.
AND MONICA, WHAT, WHAT DO YOU THINK ON THAT? SO THE WAY I'D LIKE TO SEE IT IS THAT DEBT IS A TOOL, LIKE A HAMMER IS A TOOL.
SO DEPENDING ON WHAT YOUR BUSINESS IS, YOU CAN PICTURE THAT AS A TOOL.
HERE, THE ONLY DIFFERENCE IS THAT DEBT CAN BE A TOOL FOR ANYBODY.
AND, UM, THE THAT, UH, FEAR OF DEBT IS PROBABLY FROM A MISCONCEPTION OF MISUSE OF THE TOOL.
SO IF YOU DON'T USE THE HAMMER APPROPRIATELY, THEN YOU, YOU THINK, OH, THAT DOESN'T WORK.
BUT IF YOU'RE USING IT, RIGHT, UM, YOU KNOW, YOU HIT THE, THE NAIL ON THE HEAD, THEN IT'S GOING TO SERVE THE PURPOSE THAT IT, THAT IT IS FOR.
SO IF YOU SEE IT AS A TOOL THAT IT IS, AND YOU'RE GOING TO BE ABLE TO, UM, TO UTILIZE IT, GREAT AND LEVERAGE THAT DEBT TO KEEP GROWING.
SO WHAT DOES DEBT, UH, ALLOW GROWTH MOST OF THE TIME? UM, IF THERE'S LIMITED LIQUIDITY, IF THERE'S DIFFERENT AREAS THAT, UH, NEED THAT CAPITAL, UH, DEBT ALLOWS YOU TO EXPAND YOUR CAPABILITIES.
IT CAN SHORTEN, UM, CASH CYCLES, IT CAN DO IT, IT'S A TOOL.
AND, AND, UM, THAT'S WHY I'M SO EXCITED ABOUT THIS EPISODE BECAUSE WE'RE TALKING SO MUCH ABOUT, UM, ABOUT DEBT AND HOW TO REACH IT, BECAUSE THEN YOU CAN MAKE THAT TOOL WORK APPROPRIATELY FOR YOUR BUSINESS.
THAT IS, UH, THAT IS INCREDIBLE.
MONICA, UH, AND SCENARIO, SO BASICALLY THE CONCLUSION WOULD BE AROUND THAT THE BUSINESS OWNER HAVE TO USE THE DEBT FOR GOOD THING TO INVEST IN REVENUE TO GET, TO INVEST IN EQUIPMENT, SOMETHING THAT CAN GENERATE MORE REVENUE FOR, FOR BUSINESSES
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THAT I AM HEARING FROM, FROM YOUR, UM, FROM, FROM YOUR COMMENT.SO DO YOU SEE ANY PARTICULAR, UM, MISCONCEPTION IN ANY SEGMENT OF THE POPULATION? I MEAN, BETWEEN HISPANIC, AFRICAN AMERICAN, OR WHY, OR IS PRETTY SIMILAR TO EVERYBODY THAT THAT'S A MISCONCEPTION ABOUT GETTING NEW DEBT? YEAH, SO, UH, AS I SAID, I THINK THAT IF YOU ARE NOT USING THE TOOL CORRECTLY, UM, YOU THINK, OH, THAT TOOL DOESN'T WORK.
BUT IF YOU ARE USING IT CORRECTLY, YOU WILL SEE HOW IT WORKS.
SO, UM, I I, I REALLY LIKE HOW YOU SET THE, YOU KNOW, THE STAGE.
IF YOU HAVE THAT, UH, GOOD USAGE OF THE TOOL, YOU WILL BE ABLE TO BUY NEW EQUIPMENT, SHORTEN THAT CASH CYCLE, YOU'RE GOING TO BE ABLE TO USE.
IT DEPENDS ON WHAT THE NEED IS.
AND THAT'S ONE OF THE THINGS THAT I ALWAYS ASK BUSINESS OWNERS IS WHAT IS THE PURPOSE? LET'S TALK ABOUT THE PURPOSE SO WE CAN STRUCTURE IT CORRECTLY, AND THEN THE TOOL IS USED APPROPRIATELY.
RIC, UM, SCENARIO FROM AMERICA? UH, ONE MORE COMMENT ON THAT.
YES, I WOULD SAY ON THE MISCONCEPTION, YOU HAVE TO TALK TO THE EXPERTS.
YOU HAVE TO TALK TO THE BANKERS.
THAT'S WHY IT'S SO IMPORTANT TO GET THEM OUT INTO THE COMMUNITY.
AND FOR YOU TO HAVE THAT ONE-ON-ONE OR FOR YOU TO GO TO YOUR LENDER AND UNDERSTAND WHAT THE OFFER, WHAT, WHAT, YOU KNOW, WHAT DOES IT ENTAIL.
BECAUSE ONE THING IS WE, WE HAVE A PERCEPTION ABOUT SOMETHING THAT WE DON'T UNDERSTAND AND WE HAVEN'T TALKED TO THE EXPERTS ABOUT IT.
SO IT'S JUST LIKE GOING TO THE DOCTOR AND KNOWING, YOU KNOW, WHAT THE, THE DOCTOR HELPS AND GUIDES YOU AND, AND, AND WHAT, WHAT IT IS THAT YOUR NEEDS ARE FOR, UM, LET'S SAY FOR GETTING, WELL, WELL, IT'S THE SAME THING WITH A BANK, WITH A BANKER.
UM, BUT IT'S, IT'S ABOUT BRINGING IT TO A PA TO A PLACE THAT OUR COMMUNITY FEELS THAT THEY CAN GO TO A LENDER, THAT THEY CAN TALK TO A BANKER ABOUT WHAT THE POSSIBILITIES ARE, AND FROM THERE YOU REDUCE MISCONCEPTIONS.
AND WE HAVE ONE MORE MINUTE LEFT.
SO IN A FEW WAR, WHAT WOULD BE YOUR BIGGEST ADVICE, YOUR BIGGEST TIPS FOR THE PERSON, FOR A BUSINESS OWNER WHO IS WATCHING US TODAY? UH, AND, AND THREE THINGS.
BE PROACTIVE, FLEXIBLE, AND, UM, BRING VALUE TO YOUR CLIENT.
SO CLIENT FOCUSED AND, UH, THE ONLY CONSTANT IS CHANGE.
BUT IF YOU STAY IN FRONT OF THAT CHANGE, YOU'RE BEING PROACTIVE, UM, AND BE FLEXIBLE ENOUGH TO BE PROACTIVE AND WITH A, BY BRINGING VALUE TO YOUR CLIENT AND BEING CUSTOMER FOCUSED SCENARIO, I WOULD SAY NOBODY UNDERSTANDS YOUR BUSINESS BETTER THAN YOU, SO FOCUS ON YOUR BUSINESS.
AND WITH THAT PART OF YOUR GROWTH IS THAT YOU BRING EXPERTS WITH YOU.
SO BRING A BANKER, BRING AN ACCOUNTANT, AND BRING A LAWYER SO THAT YOU CAN PREPARE AND REALLY DRAW OUT THE PLAN FOR, UH, YOUR FUTURE GROWTH.
BUILD YOUR NETWORK, BUILD YOUR NETWORK, BUILD YOUR NET.
YOU DON'T HAVE TO, YOU DON'T HAVE TO KNOW EVERYTHING.
YOU DON'T, AND, AND IT'S OKAY IF YOU'VE HEARD THIS AND YOU'RE LIKE, OH MY GOD, I, MAYBE I DON'T HAVE A FULL, UH, FLUSHED OUT UNDERSTANDING ON MY FINANCIALS, BUT NOW IS THE TIME.
SO, YOU KNOW, WHAT'S THAT NEXT THING THAT YOU WANNA LEARN? AGAIN, FURTHER PREPARATION.
SO DON'T THINK ABOUT WHETHER IT'S NOW, BUT WHAT CAN YOU DO TODAY TO BUILD YOUR TOMORROW? EXCELLENT.
WELL, THANK YOU LADY FOR COMING TODAY, AND IT'S MY PLEASURE THAT YOU ARE HERE SHARING YOUR KNOWLEDGE.
WELL, IN THIS EPISODE OF THE SCORE HOUSTON TV SERIES, WE TALK ABOUT ACCESS TO CAPITAL FOR A SMALL BUSINESS OWNER.
WE DISCUSS ABOUT THE PREPARATION NEEDED AND THE MOST RELEVANT ASPECT THAT THE SMALL BUSINESS OWNER NEED TO KNOW TO APPLY FOR ACCESS TO CAPITAL SUCCESSFULLY.
I WOULD LIKE TO SAY THANK YOU TO ALL OUR GUESTS FOR SHARING THEIR INSIGHT AND EXPERIENCE WITH OUR AUDIENCE.
IF YOU ARE LOOKING FOR GUIDANCE FOR YOUR BUSINESS, YOU CAN REQUEST A MENTOR BY FILLING OUT A SIMPLE FORM ON OUR WEBSITE, A SCORE THAT, OR A SLASH HOUSTON.
PLEASE MAKE SURE TO WATCH THE OTHER EPISODE OF THE SCORE HOUSTON TV SERIES, AND DON'T FORGET TO SEE OUR NEXT EPISODE ABOUT TECHNOLOGY AND INNOVATION FOR A SMALL BUSINESS.