Let’s talk about the finances of a startup. It can be daunting and a stressful consideration for entrepreneurs. Initially, there is so much spending and the revenue just isn’t there for the first several months to offset it yet. If you’ve been a business owner before, you know that the first few months can be a whirlwind of planning and bringing in funds. And for most of us, we begin with a loan.
Grant Ferguson is the CEO of Unsecured Funding Source, and he’s here today to talk about this process and what makes his organization unique. Grant is a growth expert, change agent, and innovative leader. As the CEO of UFS, Grant works with business owners and entrepreneurs to navigate the increasingly complex world of lending and finds the best solutions to meet their capital needs.
[2:23] – Grant shares his background in finance and as an entrepreneur.
[3:57] – He had the idea of acquiring a business rather than starting from scratch.
[5:13] – Unsecured Funding Source provides unsecured loans for businesses, start-up businesses, or personal funding needs.
[6:47] – Grant purchased Unsecured Funding Source and started to modernize the business model.
[8:18] – The startup and acquisition space has struggles because it’s uncertain.
[9:35] – Unsecured funding has a little higher interest rates and Grant explains why.
[12:27] – Grant shares the things they look at in an application and how they make the decision to work with a startup.
[14:44] – Unsecured Funding Source work with term loans.
[16:13] – Monthly payments go towards interest and the principal.
[17:45] – One of the biggest concerns for entrepreneurs is cash flow.
[18:48] – The number one thing that kills franchisees is running out of capital or access to capital.
[19:58] – Initially there is so much spending and the revenue isn’t there to offset it yet.
[21:51] – Loans through Unsecured Funding Source are tied to the business. Like a personal loan for commercial use.
[24:09] – Grant describes some of the ways they work with entrepreneurs.
[26:38] – Where is the biggest gap in financing?
[27:42] – Grant shares the goals Unsecured Funding Source for 2023.
[29:50] – Chances for success rely on a lot of pieces.
[30:58] – Is the price of money high? It is, but it’s going to get higher. You should be looking at the cost of doing nothing.
[32:29] – Get a plan in place before quitting the day job.
[33:55] – Banks are very keen to lend right now.
[35:41] – How long is the process to secure funding?