|
Charter School Business
August 2008 Newsletter
LOOKING FOR CONFLICTS OF INTEREST
BY Brent Van Alfen
"There are “war stories” that abound in the area of charter school facility finance where school boards have been victimized by those who had ulterior motives."
|
|
Love Sack like foam bean bag chairs.
Lovesac Like Sacks of Love
Giant Bean Bags Like Lovesac Chairs.
Lovesack love sacs
Lovesack like Love sacs
Huge Foam Filled Bean Bag
Chairs Like Lovesack
Love Sac Bean Bag Chairs
Giant BeanBag Chairs
Like Lovesac's Furniture
Ebay Large Item Freight Shipping
Cheap large item
shipping rates.
Rustic Log Furniture for
Log Cabins.
Rustic Log Furniture for Cabins
Log Home Furniture and
decorations.
Affiliate Websites
|
|
Thursday, August 28, 2008
|
|
|
WHAT YOU NEED TO KNOW ABOUT CHARTER SCHOOL FUNDING
Commerical Markets & Money Sources
Understanding the Costs in Getting a Loan
Some Basics in Applying for Funding
Tips to Remember when Applying for Funding
SOME BASICS IN APPLYING
Communicate your need accurately and clearly to a prospective lender.
- Know what type of credit facility or loan you want. Use correct terminology.
- Clearly explain the reason for and benefit of the asset you want to acquire.
- Describe the collateral or security for the loan and demonstrate that the value is
sufficient to recover the loan amount in the event of default.
- Explain the source of payback for the loan and demonstrate that there is ample
coverage to make the payments.
- Tell the "story" without rambling or paragraphs of irrelevant information. Be
concise, to the point but complete.
- You usually only have one "shot" at a lender so keep in mind that the lending
officer and committee only know what you present to them. Don't submit a partial package of information and dribble in bits of information as requested later. The lending officer usually has a large number of requests to process so yours must stand out or at least be easy for him/her to understand and process.
Application package
The information should be complete, to the point, and thorough without superfluous information.
Points to cover are as follows.
- Explain briefly what a charter school is and that the source of money is a government entity. This means there will not be a collection problem as there often is with other small businesses.
- Include audited financial statements for the last three full years and the most recent interim statement in GAAP format.
- The total amount of money desired for
a. Construction loan
b. Permanent loan
c. Refinance current loan on present buildings
- Location of property, amount of any current encumbrances and to whom the encumbrances, if any, are owed
- Describe the need for the project
- Describe the source of repayment
- Show ample cash flow for payments
- Copy of the charter under which the school operates
- Copy or charter application
- Copy of your business plan, mission statement or any other material to help a lender get to know more about your school
- Financial/budget projections for five years
- Enrollment history
- State payment history
Your request must be credible to have a chance. Put yourself in the lender's place
and ask if you would take this risk.
Match the credit request to the useful life of the security.
- Credit lines are annually renewable and are used for working capital or other
current needs.
- Medium range financing is usually a term loan or lease of three to seven years in
length and is used for assets such as equipment or furnishings that have a useful life in that range.
- Long term financing will have amortizations of ten to thirty years and will
normally be secured by real estate type assets. These loans often will have rate adjustments periodically or balloon payments well before the amortization term.
|
|
|
