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BizBuyFinancing Facts
Types: The range of lending products involved in business acquisition financing includes:
- Fixed and variable rate SBA 7(a) loans
- Commercial loans
- Funding for partner or management buyouts
- Convertible retirement fund financing alternatives
- Hard money loans for challenging transactions
- Seller carry-back notes offered to private investors.
Amounts: From $100,000 to $5 million strictly for business purchases (business only, businesses with real estate, franchise resales, professional practices)
Purpose: Funding the purchase of small and mid-market businesses throughout the U.S.
Representation Model: Solely and exclusively working for a single client or client group involved in a business sales transaction.
Clients: Purchasers seeking to fund business acquisitions, sellers seeking to prequalify their businesses in advance of a sale, business intermediaries seeking financing needed to complete a deal.
Two Step Process: Involving the company’s signature Professional Prequalification program. Good for multiple loan applications if required and the BizBuyFinancing suite of loan/financing sourcing services. This includes business analysis, packaging, presentation and loan application management.
Year Established: 1990.
Principal: Peter Siegel, MBA.
Staff: Team of professional support people handling research, administrative and related functions, enabling Peter Siegel to focus directly on achieving results for clients.
What Is Different And Difficult About Getting Business Purchase Financing Today?
Substantial changes in the finance sector of the U.S. economy over the past few years, particularly as a consequence of the banking crisis that began in 2006, has dramatically altered the marketplace where entrepreneurs seek funding to purchase and to help sell small and mid-sized businesses. Whether the enterprise of interest is a fast food franchise, a long-established manufacturing company or any of the thousands of business categories in between, the process of getting the funds needed to complete a deal has been irreversibly altered. For many individuals trying to buy or to sell a business, the funding part of the equation is as difficult as the first part: matching a purchaser with a business and negotiating a transaction.
Reluctance of lenders to continue participating in their markets, following a record level of borrower defaults, has impacted not only the home mortgage industry and investment banks, but even small business acquisition financing. In response, the SBA has grown in importance as a factor when buyers are seeking anywhere from $ to a few million to make a purchase possible.
With a greater role for the SBA in this market, the challenges of compliance with the agency’s borrowing requirements include the fears that a business purchaser’s loan request will be “strangled with red tape.”
The growth of private lending enterprises to fill some of the gap left by financial institutions has offered some solutions for those seeking funds to purchase a company, or for sellers who wish to convert a carry-back note to cash. But not all private investment interests are reputable lenders. Too many entrepreneurs are being victimized by predatory lending practices.
More creative deal structuring and funding strategies are being employed to accomplish business purchases. But more frequent instances of seller financing and expanded use of retirement funds as down payments on business deals have proved expensive and troublesome if these tactics are not executed correctly.
Addressing these challenges is the professional mission of BizBuyFinancing. We help business buyers and sellers successfully navigate among the challenges presented by the evolving business purchase funding marketplace.
BizBuyFinancing Fills This Need Of Business Buyers And Sellers With:
- Twenty years of experience as a business acquisition financing intermediary.
- Close and continuing connection with the business for salemarketplace through related BizBuyFinancing activities.
- Firsthand knowledge of the changes affecting both the business sales and business acquisition financing markets.
- Innovative programs such as the Professional Prequalification service. This is one part of the company’s two level approach to serving the business acquisition financing market.
- sourcing (the second part) includes analyzing specific business acquisition funding needs, collateral analysis and loan packaging. Clients are then successfully matched with appropriate commercial or private funding sources and with SBA-backed financing or money from commercial lenders.
- Exclusive representation protocol making the best interests of clients our only responsibility. This eliminates any possibilities of competing loyalties or conflicts of interest.
- Deal making experience applied to business purchase contract structure. This can determine the success of financing efforts, whether its purchasers seeking business acquisition funds or sellers hoping to “cash out” of carry-back promissory notes.
- Extensive knowledge of SBA-backed loans–how to achieve loan approvals and how to get the prompt responses needed to win in the fast-moving competition for desirable businesses for sale.
For more information about BizBuyFinancing and how to get assistance with business purchase financing please phone us today at 800-540-1811.
