About this episode
Kristan Parker, national sales director at Koala Capital, has financed small businesses since 2010 and says roughly 60 percent of the deals on her desk are now non-emergency medical transportation. Her argument against paying cash is blunt: you have to have credit to get credit, and a van bought outright drains the reserves that should cover hiring, marketing and unforeseen expenses. Koala Capital's application-only programs run on an e-application filled out from a phone, a soft credit pull at Experian and Equifax, and an underwriting answer the same day or within 24 hours.
Key takeaways
- Financing builds business credit without hitting personal credit. Parker's standing advice is to use other people's money so cash reserves stay free for staff, advertising and unforeseen expenses.
- Sizing the deal starts with revenue projections: what one, two or three added vehicles will actually earn, measured against the roughly $50,000 Parker cites for a vehicle.
- Application-only programs may require no business or personal bank statements. The soft pull on Experian and Equifax does not ding credit, and term options come back before any hard commitment.
- Koala Capital finances more than the van: ramps, wheelchairs, electric wheelchairs, stretchers, automatic stretchers and stretcher tie downs, plus conversion of a van that is not already built out.
- Parker works with dozens of lending institutions and investors, which she says covers startups and seasoned operators alike through the right blend of cash, collateral and credit.
Chapters
- 0:00 Introduction
- 1:00 Background of Kristan and Koala Capital
- 3:32 Assessing your financing needs
- 4:30 Steps to getting financing
- 6:41 Koala Capital's focus on NEMT
- 10:02 Types of assets to get financing for
- 12:24 RUN BAMBI RUN!!
