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
* 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
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.
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