KANKETA “SPLIT LINE” SMALL BUSINESS LOANS

KANKETA GLOBAL SYSTEMS “SPLIT LINE” LOANS For Small Business

Any well-managed business should easily be able to thrive and grow with a “Split Line” Lone.  Here’s how it works:

  1. Using last year’s 12 month year end Profit and Loss Statement, find your annual gross profit.

  1.  Divide your annual gross profit by 12 to get your average monthly gross profit.

  1.  Multiply your average monthly gross profit X 2 X .67 to find the maximum line of credit that your business needs to pay your monthly operating expenses.

  1. Using your line of credit amount, locate the next highest loan amount on this scale;

$150,000

$125,000

$100,000

$  75,000

$  50,000

  1. Apply for this loan amount

You now have you full line of credit amount plus extra for reinvestment into the growth of your business.

Example:

$720,000 = last year’s gross profit.

$60,000   = average monthly gross profit.

X 2 X .67 = $80,000 maximum line of credit needed

Apply for $100,000 (next highest loan amount)

Use the extra $20,000 for growth.

While this loan is technically not a line of credit, when it is used strategically as a line of credit, it will be the beginning of self-funding. When you pay yourself the interest of 1.5% per month instead of paying it to a bank, you will ultimately eliminate the need for a bank. This is called “Quadra structuring”. This is no cost education when you have a promotional code. (Send your request for a promotional code to mwolf@kanketa.com).