Leo Kanell

Tag: Leo Kanell

  • Startup Business Funding Trends 2016

    Startup Business Funding Trends 2016

    Leo Kanell discusses the best funding and financing options available for entrepreneurs in 2016. For more tips and info regarding funding for entrepreneurs go to www.leokanell.com.

    For the majority of business startups bootstrapping is most often the path taken to launch your new business. For most they are under capitalized which puts them in a tremendously vulnerable position. In this video Leo Kanell explains the top 3 trending options for startup businesses to secure funding. These are options that can be available to any entrepreneur.
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    That said, some of these startup funding options are easier than others. So by following the newest movements with lenders you will increase your odds for successfully securing capital significantly. Leo Kanell teaches entrepreneurs how to creatively secure affordable financing to fuel the growth of their new or existing business. Nothing puts a smile on his face like knowing that the latest entrepreneur was able to secure funding and launch their business thanks to his expert guidance on the subject of startup business funding.

     

  • Startup Funding Options

    For most new startup businesses the task of securing some startup funding capital can be extremely daunting and in reality where to start is the most difficult thing to know.  Most new entrepreneurs immediately think of going to their local bank and seeing if they will qualify for some money, let’s begin by looking at that experience and then other options after that.

    When you go and see your bank it’s important to understand that most banks do not lend to brand new businesses since they are unproven and a high risk.  That means the only option you will find at a bank will be the infamous SBA option.  SBA has 3 loan types, the 7(a), 504 and the express.  The 504 and express almost always are exclusively for established businesses with 2 to 3 years of profitable business tax returns.  The 7(a) is the only option that can realistically be used for startup businesses.

    Qualifying for a 7(a) loan can be a difficult task, in reality it comes down to a lot of things like your business plan, industry type, your personal credit, but indeed the most important factor will definitely be whether you have any assets or collateral.  Acceptable collateral types will generally be significant equity in your home or other real estate properties, newer equipment with a strong value and generally a 401k or IRA.  So if you have those types of collateral then you stand a good chance at securing a startup SBA 7(a) loan.

    You will also need some type of down payment usually 10 to 25% is what most lenders want, for new businesses the percentage is usually much closer to 25%.  So you have to ask yourself what percentage of new startups actually have that type of collateral and down payment available for their business to secure startup funding?  Since I have personally spoken with thousands of new business owners in my experience it would seem that less than 5% of new entrepreneurs have those kinds of qualifications, assets and collateral.  So if you don’t possess those items then what other options are there?

    In reality the best option will be a mixture of unsecured credit lines.  These credit lines do not require extensive income documentation or collateral, in most cases you just need a 680 credit score to qualify for them.  The monthly payments are low and affordable and they are flexible tools.  Even if you are successful at securing an SBA loan, an SBA loan will often not be able to go towards working capital, so in reality you will still need additional funds for working capital like paying payroll, marketing and other costs.  For most startups unsecured credit lines are your best bet.

    ABOUT THE AUTHOR:

    Leo Kanell teaches entrepreneurs how to secure affordable capital for their new or existing businesses.  For more info go to http://www.leokanell.com

  • Credit Inquiries Have Ruined My LIfe

    Over the years I have helped my clients secure over $120 Million dollars in funding and I’ve learned a few important items that lead to success when securing funding for a business.  One of the most misunderstood concepts that is constantly be spread across the country is the idea that a few credit inquiries aka “hard credit pulls” are going to drop my credit score 100 points and ruin my life.  Today I’m going to tackle this common misconception with the facts of when credit inquiries do negatively impact you and when they are irrelevant to your funding options.

    HOW INQUIRIES AFFECT YOUR CREDIT SCORE

    So let’s look first at how credit inquiries can affect your credit score, first of all credit inquiries make up about 5 to 10% of your credit score, in most cases the percentage is closer to 5% so will 6 to 8 inquiries drop your credit score 100 points, the answer is definitely no, it might lower the score by 15 to 20 points and that is about the biggest impact.  Of course if you go hog wild and have your credit pulled 25 to 30 times in a 30 day period then that could lower your score a lot more, in reality though most people have 2 to 4 credit pulls every 2 months and that is not going to make a big impact on your credit score.

    SECURED LOANS

    Let’s say that you are looking for a mortgage or an auto loan and you go to a few different mortgage and auto lenders to look for financing.  The good news is that the three major credit bureaus will actually count most inquiries that are mortgage or auto loan related as one inquiry when they are pulled within a 2 week window.  The credit bureaus understand that you are looking for the best deal and as such they don’t punish you.  Now regarding the effect inquiries will have on actually securing the mortgage or auto loan, well the answer is there is really no impact, secured lenders like mortgage lenders and auto lenders know that they have collateral and so in case of a client not making their payment and defaulting on a mortgage or auto loan they can take back the collateral, so what that means is they don’t generally take credit inquiries as an important factor in underwriting your loan.  At most a mortgage lender will require a letter of explanation for what the inquiries are.  In reality credit inquiries rarely have much of an impact on your ability to qualify for a mortgage or auto loan.

    UNSECURED LOANS

    Unsecured credit lines, loans and credit cards are affected much more with inquiries.  Unsecured lenders take on more risk than secured lenders so if you try to get a credit card or two and already have several other inquiries on your credit report in the weeks prior to applying for a new credit card then the credit card lender will assume you already secured financing elsewhere and in many cases they will automatically decline your request for a new credit card or credit line.  Thus in all of lending the biggest impact that credit inquiries can have on you as a borrower is when you apply for any type of unsecured credit lines or loans.  Some lenders nowadays will actually do a soft pull on your credit report which will have no impact, but most lenders will do a hard pull.  Either way you will want to pay special attention to hard credit pulls.

  • The Quest for Excellent Health

    So when it comes to your health there are not many priorities that rank higher.  You can have all of the power and money in the world and it will all mean absolutely nothing if you do not have good health to enjoy it.  Indeed no matter what is most important to you whether that is family, recreation or good ol-fashioned hard work to have good health is to be able to enjoy what you love.  So that said let’s take a look at some of the keys to good health today including diet, exercise and planning and focus.

    DIET

    Ok so we have all at various times experimented with a multitude of diets, so what is really effective?  The truth is that it completely depends on what your goals and focus are.  For example if you are looking to lose weight and fat and become more lean which the majority of the population is trying to do then a more refined diet is needed.  However, if you are looking to increase muscle mass and grow muscle size then your diet will differentiate substantially from that of someone looking to lose weight.  Let’s focus on what most people are looking to accomplish which is to lose fat, excess weight and increase energy.  I have spent countless hours researching this and when I was overweight and out of shape I found the following formula to be absolutely effective at cutting that nasty gunk and grime we call fat cells.  There are essentially 2 items in the foods we eat that absolutely lead to that frustrating spare tire, they are starches and sugars.  Starches refer to those tasty breads, pastas, cereals, french fries and most italian foods that provide energy but very few health benefits.  These foods are more difficult to digest, they slow down our metabolism and frankly put us to sleep.  Have you ever gone out to lunch at that great Italian place and then afterwards wanted nothing more than to take a long nap?  The reason is that starches simply slow us down from a physical standpoint.  Sugars while not having the negative slow down effect that their sisters carbs have have a similar impact on the fat cells we take on.  Sauces, sweets, candies, cakes, ice cream and any food with corn syrup and fructose are all foods that are going to often lead to unwanted fat gain.  So at this point you’re saying wow, this really sucks a lot of my favorite foods lead to straight up fat gain, yes this is sadly true, there are now more than ever tasty alternatives that I will share with you in future posts.  Bottom line you must focus on consuming lots of veggies, most fruits and lean meats, I love what one fitness coach said, “if man makes it don’t eat it, if nature makes it, eat it up!”  Suffice it to say you’re going to need to dig deeper and focus on avoiding starches and sugars if you want to kill the spare tire around your waist.

    EXERCISE

    There are a plethora and I do mean plethora of workout options in existence today and each of them is going to be better than sitting you butt on your couch and doing nothing day after day, but to get the best results there are some things to keep in mind.  Many workouts are either focused on cardio vascular (cardio) activity that gets you moving and your heart pumping or they are all about strength training.  What I have found to be most effective is a combination of both.  So 2-3 times a week I will do cardio and 2-3 times a week I will do strength training.  I typically rotate each day, so on Monday I may do cardio for 30 minutes and then, the next day on Tuesday I will do strength training.  Adding a little yoga, martial arts and pilates once a week can be extremely beneficial and lead to stronger joints and tendons.

    SCHEDULE IT OR FAIL

    The number one reason that the majority of Americans and good people around the world are overweight and obese is not because they are lazy, but because they simply do not schedule their diet and exercise plan.  The key to success with anything is to have a concise time when you make your game plan, the New England Patriots and their outstanding coaching staff have every minute of their practice and game film study planned to the t, there is no wasted time or movement everything is done with purpose, if you want to be physically fit then you need goals and schedules, if you know you work from 9 to 5 Monday thru Friday and that you must leave your house by 8:30 am to get to work on time, then you either need to schedule your workout at 6:30 or 7:00 am or 6;30 or 7:00 pm at night.  For most people there isn’t a snow ball’s chance in hell that they will work out after a grueling day at the office so working out first thing in the morning is the best time, if you schedule it then the fitness will come.  Additionally with your diet if you don’t plan out your means and what you will buy at the grocery store then plan on failing at your fitness.  You should plan out your meals and groceries at least once a week to stay on target.

     

    Well that is a solid generic game plan that will lead to being healthy, hot and fit!

    For more tips at health transformation just check in to our blog.

  • Leo Kanell Knows Freedom is the Key

    You may ask yourself how is it that in the last 240 years has the world in general progressed so incredibly with technology and improving the way we live as humanity.  According to Leo Kanell the truth is it all begins with freedom, there is a reason that technology did not evolve quite so rapidly under certain elements of time versus others.  For example, much of the development began with the Italian renaissance where there was sufficient freedom to develop new products and inventions.  Many great artists and scientists like Leonardo Da Vinci (who Leo Kanell was named after) and Michaelangelo came during that time.  Where there is true freedom the opportunity to prosper exists.

    So with such unprecedented freedom in existence in society today in the year 2015 how is it that so many people really still live with so little freedom.  To me freedom is the ability to make our own choices, maybe that means I’m not going to work tomorrow, but will instead go wakeboarding on the lake with my family all day.  Perhaps it means that I will travel to learn more about a new culture or way of life.  In reality though the majority of people are not free to make such decisions and we all know exactly why that is.  Leo Kanell says it is because the majority of the population is subservient to those that control and mange their own enterprises.  I’m not telling you anything you don’t already know, but to obtain true freedom it all begins with one question, are you an employer or an employee?  It really is that simple, either I work to create my own freedom through wealth creation or I am working to help someone else create their freedom through my efforts.

    In the Count of Monte Cristo novel, Napoleon Bonaparte truthfully states, “in life we are kings or pawns.”  Truer words were never spoken, so which will it be for you, king or pawn?