SBA Loans & Commercial Loan Financing For Business
Purchases Priced Between $400,000 And $5,000,000

Sellers: Pre Qualify Your Business For Potential Business Buyers

Owner/Sellers need to get their business pre-qualified from the sell side before they go to market for several reasons. Whenever we tell owner/sellers this, they look at us sideways wondering if we have lost our minds! They usually reply "that is the buyers responsibility to get pre-qualified and get financing for the purchase of my business!" Nothing could be further from the truth.

Read below why it makes good sense for business owners/sellers to have their business financials/tax returns and deal structure/price looked at by us before taking any calls from potential business buyers!

1. Based on your financials and tax returns from the previous three years you need to know if potential buyers would be eligible to get a loan to buy your business. If you know that your business is not eligible for financing than you know that the deal structure for selling your business will be very different without financing involved.

2. You also won't waste time with buyers who say they can get financing when you know they won’t be able to. Most buyers usually scramble at the last minute to get financing and select the wrong type of lender who won’t approve of the deal - wasting your time.

3. You need to know how you should structure your deal correctly. This will bring the right type of buyers to the table who can complete the transaction with minimal complications. You will also get more potential buyers involved because as you show buyers you have had the foresight to get your business pre-qualified on the sell side they will be more interested knowing that you have saved them a lot of effort that they will not have to do to secure financing.

4. If your business is eligible for financing you will usually get a higher price for it and in many instance get all cash instead of having to take back a note and finance it yourself!

5. When you do get your business pre-qualified for financing on the sell side you will also get advice on what types of buyers would be approved for financing for your type and potential deal structure. You will also get a letter of TOTAL Pre-Qualification you can present to qualified potential buyers!

6. If you know that you have financing lined up for potential buyers you can better control the deal knowing that you don’t have to rely on the buyers to go out and search for financing - keeping you waiting while they hunt for a loan and other potential business buyers move on to other deals.

A good idea is to require them to utilize the financing that you have secured for buyers so you don't lose control of the deal. What is usually required to get your business TOTALLY Pre-Qualified on the sell side? Usually 20-30 minutes of phone time answering questions about your business. The recent 3 years of your companies tax returns. The recent 3 years of your companies financials - profit and loss statement, balance sheet. Interim financials for the current calendar or fiscal year.

Get this process done early in the selling process, you'll be glad you did!

© Peter Siegel, MBA - All Rights Reserved

http://www.BizBuyFinancing.com

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About The Author: Peter Siegel, MBA is the President of BizBuyFinancing. Established since 1991, BizBuyFinancing specializes in obtaining SBA Loans & Conventional financing nationwide for the purchase of small to mid-sized businesses. Loan sizes range from $400K to $5M. More SBA loan tips and information can be read on their SBA Loan - Business Purchase Financing Blog. For more information call BizBuyFinancing at 800-801-4413 or see their website at www.BizBuyFinancing.com

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