SBA or Private loan on Business , commercial and others
With new SBA loan Programs, It guarantee up to 90% of loan amount, if you are "Qualified".
For new ventures: if your New venture -
For existing Businesses: When purchase, Upgrade, refinance a business or Commercial, New ventures., Veteran Loan. SBA Guaranteed Lenders and others Private Lenders are a great resource for financing. Quite often, not too many buyers have all cash for a purchase and not many business owners are willing to take back a sizeable note.
SBA and other Private Lenders look at many different issues in both the business,
commercial buyer as borrower and at the business/commercial, or professional practice
that is being purchased. Below are some key factors that make a difference whether
you will receive SBA or Private lenders loan financing to buy or re-
1. Buyers /Borrowers need to have a good credit score of over 750 , the higher the
score the better. Personal or business bankruptcies (within 10 years) or many late
payments will usually result to dis-
2. Lenders like a borrower who has experience but not absolutely required in the
business they are buying or in a related industry, or with specific job skills relating
to the business they are buying. Lenders also like management experience or buyers
who have previously owned a business (self-
3. History of earnings (revenues of gross sale and profit) or income from commercial, both total annual revenues and adjusted net income should have a either be flat or growing over the previous three years, (no one wants to finance a business on a downward trend). If there have been any downward trends in earnings over the previous three years there should be a very good explanation or the deal will probably not be approved for financing.
4. Positive cash flow (or adjusted net income, SDC or EBITDA must cover the debt
service of the loan and provide you with an adequate income to live off on; otherwise
you won't get the loan. Lenders look closely at the tax returns of the business being
5. Additional equity in any real estate that can be attached to the loan? Although not imperative with many of the lenders we represent, this can strengthen the deal if the other parts of your loan application are weak such as the down payment, work experience or a lower credit score.
6. Management team remains: Will the business that's being sold have management in
place and it key employees who are going to stay? Try to get commitments from existing
key personnel and management to stay for a period -
7. Will the seller take back a note? If the owner is willing to take back a note,
even a small note as 15%-
Quinchee Loeng is a Licensed Broker/Banker on SBA and Private loan financing, she
and her Associates assists Business Buyers, Business Owners Nationwide to obtain
SBA , and Private Financing on Selected Types of Mid-
( Division of LOF )
2540 Huntington Dr, suite #109
San Marino, CA 91108 .U.S.A.
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We provide these services: Business Funding, Business Joint Venture,
Business Appraisals, Credit Card Funding.