Unique Opportunity To Become An Asset Based Lender. The Company Is A California C Corporation In Good Standing And Is Licensed By The State Of California As A Finance Lender And Broker. A Finance Lender’s License Provides The Licensee With An Exemption From The Usury Provision Of The California Constitution, Which Means That Interest Rates And Fees Are Only Limited By Market Conditions And Not By Statutory Restrictions. The License Authorizes The Company To: Make Commercial Loans; Make Consumer Loans; Broker Loans; Factor Receivables; Provide Secured (Asset Based) Lending.
The Business Was Founded In 1990 To Provide Vertical Financing For Accounts Receivable Lending, Inventory Lending, And Short Term Capital Loans. At Its Peak The Business Processed 1,500,000 Per Month Of Secured Lending And Was Very Profitable. However, For The Last Several Years, Due To Family Health Related Issues, The Company Has Been Dormant. The Founder And Controlling Shareholder, Who Has Over 50 Years Experience In The Secured Lending Industry, Is Willing To Continue As Ceo Or As A Consultant To Guide And Assist In Re-Ramping The Operations Of The Company.
Current Opportunities For Commercial Finance Businesses Are Unprecedented. The Financing Needs Of Small To Medium Sized Businesses Is Under-Served, And In Some Areas, Not Served At All Due To The Inability Or Willingness Of Commercial Banks To Provide Small Business Financing.
The Purchase Price Is 225,000 And The Founder Will Carry Back A Seller Note In The Amount Of 150,000. In Addition To The Purchase Of The Business, New Ownership Would Need To Invest At Least 100,000 To Further Capitalize The Company And Fund The Cost To Re-Ramp Operations, Bringing The Total Initial Cash Outlay To 175,000.
Businessquest Brokers (“Broker”) Has Made No Independent Investigation Or Verification Of Any Representation, Warranty, Document, Or Information Presented By The Seller Herein. Prospective Buyer Is Responsible For Their Own Independent Investigation With Respect To Such Items And Is Advised By Broker To Do So And To Obtain The Appropriate Counsel From Legal, Accounting And Other Professionals Concerning This Business Opportunity.
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