Our federal government is currently funded through September 30th. Unless our elected officials approve a new budget before this date, the government will shut down. The most recent shut down lasted 35 days between 12/22/18 and 1/25/19. M & A Advisors and Business Brokers need to be proactive about buyer financing activities when a potential...
Cash and Personal Assets as Equity Cash from savings is king in equity injections, but other sources can also be used. Assets that can be readily converted to cash, like stocks and bonds, are acceptable. A borrower can take out a separate, personal loan for the equity injection as long as “repayment [can be] demonstrated...
Many prospective business buyers look to the Small Business Administration for business acquisition loans. The SBA loan is the most commonly used business acquisition loan available today. SBA loans were created to be borrower-friendly for business acquisitions. In comparison to conventional loans, SBA loans: 7(a) Have longer repayment terms with no prepayment penalties More repayment...
Qualifying for SBA lending is no easy task, and there are some elements of your application that lenders will always review with a critical eye when determining your eligibility. These elements are referred to as the ‘5 C’s.’ Save yourself time and frustration by making sure you’re a well-qualified candidate in these five areas before...
Basic Requirements of an SBA Loan Down Payment (By Business Type): While a down payment is required for every SBA loan, the amount can vary greatly by which type of business you’re funding. If you’re acquiring an existing business or franchise you may have a significant down payment requirement of around 20 percent (a 10%...
SBA and its lending programs were specifically built to benefit small business owners. If you're a well-qualified borrower, you can enjoy many benefits when funding your business acquisition with an SBA loan. The top advantages include: Buying power: SBA loans range from $75,000 to $5 million in funding. This wide range provides you the buying power...
How to Compile Financial Records to Prepare a Business For Sale You will not get beyond the first glimmer of buyer interest unless you show financial records – and the more formally prepared and documented they are, the better your chances are for selling. In fact, how you present your financial information can affect the...
More than one business owner has been turned down when attempting to find financing. (Roars of laughter…really?) Especially in this economy small business financing is no easy task. One thing that owners can do is use their voices, the SBA has a very intelligent blog and that is one place where you can not only...
