BizBuyFinancing Blog

SBA Financing – Are 5 Partners Too Much In Buying A Coin Laundry?

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A potential client who is going in with other partners to buy a coin laundry had some questions for me the other day that pertains to going into a transaction with partners and involving business purchase financing via a SBA loan.

Here are his questions and concerns:

First of all most of the “partner” oriented buyers I deal with never end up buying a business. After they look at the businesses and “divy” up the potential profits, it doesn’t really make sense ...

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Cabinet Sales And Distributorship Business Purchase – SBA Case Study

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CASE STUDY: A SBA loan client of mine is buying a cabinet sales and distributorship from a seller asking a price of $2.1M. The buyer has been Pre-Qualified with us for a business with a purchase price of $3M or less, and with adjusted net income of at least $300K after debt service. He was approved to buy almost any type of service or manufacturing type of business with his qualifications and background.

Here are the facts on this CASE STUDY ...

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SBA Financing Online Workshop Tonight

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Date: September 13, 2006 – Wednesday Evening

Time: 6PM-7PM Pacific Time

Information & Skills Attendees Will Learn:

• How To Correctly Structure Your Deal For SBA Financing
• The Differences Between Conventional & SBA Financing For Business Purchases
• Why Picking The Right Lender Is Important For The Timing Of Your Deal
• How Lenders Value Different Businesses For Potential SBA Loans
• What Forms, Documents, & Information You Should Have Ready
• Why s Get Turned Down & What Is Needed To ...

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Media Conversion Purchase With SBA Financing – SBA Case Study

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CASE STUDY: One of my SBA financing consulting clients brought me this deal recently – a B2B company that converts different types of media. My client is in the LOI stage of the deal and has not yet begun the due diligence on the company. The buyer has been Pre-Qualified with us for a business with a purchase price of $1M or less, and with adjusted net income of at least $60K after debt service. We have also covered the types of businesses ...

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SBA Standby Agreements Can Take Owners By Surprise

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One of the potential deal killers that I see again and again is the SBA Standby Agreement (SBA Form 155). An attorney associate of mine who specializes in deal structures and contracts reminded me of this fact and wrote the following about this subject.

Thought you would find it interesting and helpful.

“As a condition of loan approval, some SBA lenders routinely require that the seller execute the SBA Standby Agreement with respect to seller carried financing.  In essence, the Standby Agreement forbids (or ...

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Federal Tax Lien History Will Kill SBA Business Purchase Financing

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Today I had a potential borrower who wanted to buy out the note he had taken back when he bought out his partner 6 years ago. The note amount and financing would end up being approximately $1.2M but after I received more infomation on the deal there was some obsticles.

Here were the challenges of this deal:

  1. Federal Tax Lien
  2. Poor credit history
  3. Minimal collateral

The request of $1,250M called for a refinance of a prior seller carry back note that was greater than the ...

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