The most common question clients ask me about business purchase financing is how fast can we secure them funding to get their business purchase completed.
While there are many steps we (myself and the actual lender selected) must pass through from start to finish my answer is "it's all up to you."
This statement often catches people off guard but it is the absolute truth.
There are certain items you must have ready in order to start presenting "a transaction or deal" to potential lenders and financial institutions.
Your quest for SBA business acquisition financing will be much faster if you have the following items ready:
* Past 3 years personal tax returns for all owners with 20% or more ownership (Federal Returns only)
* Personal Financial Statement
* For any other affiliate company with at least 20% ownership by an owner of applicant business you will need to provide the past 3 years corporate tax returns
* Resume
* Signed Purchase Agreement
* Brief write-up about the business - possible "mini" business plan
* Past 3 years corporate tax returns of the business you are purchasing
* Past 3 years P&L and Balance Sheet of the business you are purchasing
* Interim P&L and Balance Sheet of the business you are purchasing
* Reason the current owner is selling
If you have all of these items ready to go it will help get your business purchase financing deal into underwriting much faster. If you are in the early stages of searching for a business to buy then simply have your personal items available for review, once you have identified the business you desire we can then request the items needed from the owner/seller.
A complete package is more likely to be put at the top of an underwriters pile whereas an incomplete package can drastically reduce your changes of funding altogether for your business (or business with real estate) purchase.
Categories: BizBen Blog Contributor, Business Purchase Financing, How To Buy A Business, Small Business Financing
Contributor:
Areas Served: California
Phone: 925-785-3118 Cell, 925-785-3118 Text
Niche business purchase financing advisory and loan placement services with SBA and Non-SBA Financing, Retirement Fund Rollover Solutions, Combo Financing Packages. To get professionally pre-qualified or more information on the ProBuy/ProSell Programs: 925-785-3118.
Other Related Blog Posts, Articles, And Discussions You May Be Interested In
When To Sell Your Small Business - Many Key Important Factors Play A Part
Determining the right time to sell a private business is as much an art as a science, because there are so many factors at play and each business is unique. The timing of a business sale is critical. Christina Lazuric, CBI, Orange County Business Broker discusses this topic on this BizBen Blog post.
Working Out A Deal: Things To Consider When Buying A Boutique Fitness Gym
First thing you may be asking, what is a boutique gym? Simple, a boutique fitness gym is on average much smaller than your typical large-scale gym, ranging from 800 to 2,500 sq ft. In this BizBen blog post, Joe Ranieri (Southern California Business Broker) discusses this topic for gym buyers.
What Are Buyers Biggest Mistakes? The Pro's Examine 25 Of The Most Common
A business buyer in our ProBuy Program searching to buy a small business asked me to sum up what I thought the biggest mistakes business buyers make when they search for and bought a small business. I asked ProIntermediaries on BizBen their thoughts on the matter and received a diverse response.
Buying A Liquor Store: 3 Questions To Consider And Ask Before You Purchase
Buying a liquor store? First, ask yourself these three critical questions to find out if owning a liquor store is right for you. Questions like hands on vs absentee ownership, inventory turnover, licensing issues. Peter Siegel, MBA (BizBen ProBuy & ProSell Program Lead Advisor) explores this topic.
Live BizBen.com Sessions Podcast: Upcoming Schedule, Topics, & Panelists
The BizBen.com Live Sessions Podcast is held on select Thursday evenings at 7PM. This 45 minute session is comprised of questions and topics that have been emailed and texted into the Host of this podcast Peter Siegel, MBA and informative panelists: ProAdvisors, ProIntermediaries, & Special Guests.
8 Items Buyers Of Small Businesses Find Critical When Reviewing Businesses
In this month's Business Buyer survey for BizBen.com, we asked participants in our ProBuy Program and 250 other random business buyers what they look for and avoid when looking at a business for sale postings online. Of the 20 potential posting characteristics we asked about, 8 stood out with most.