In today’s ever changing financial markets it is now more important than ever to pre-qualify a listing long before you have a potential business buyer. Allowing a finance expert to review the business listing will not only help when you start speaking with prospective buyers but it will also help speed up the funding process.
A finance expert will be able to show what potential roadblocks or hurdles you will likely face simply by doing a quick review of the business. They will also most likely be willing to guide you through the process of overcoming the hurdles to ensure a smooth path to funding.
It is best to have these obstacles figured out before the lender is making a decision on approval as it may be too late at that point and kill the transaction. A day at the beginning of the sales process can save you weeks in the end, the best part is it doesn’t cost you anything.
Here are the items needed to get a deal (seller) pre-qualified:
1. 3 years previous business tax returns
2. 3 years of previous financials - P&L's, balance sheet
3. Current copy of the lease
4. Business Profile of business - (company history, financial pro-formas, etc.)
About The Author: Jonathan Smith is a financing/loan broker, consultant who assists with larger loan amounts ($500K to $5M) - SBA loans, conventional financing, and private lenders for business purchase financing. We works with business buyers, owner/sellers, business brokers, and agents. For assistance with business purchase financing options phone him direct at 888-859-9838.
Watch for more blog posts / articles from me in the future!
Posted on April 14, 2009 | 
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