Sometimes getting financing on businesses for sale with a contractoring license can be tricky. SBA lenders many times hesitate in funding a business purchase if the buyer does not have an existing contractor's license. I have a seller client (who has been pre-qualified on the sell side) now working with several buyers who do not have a contractors license and we are looking at all the buyer's pre-qualifications to see who has the better opportunity of getting SBA financing in this deal.
Licensing solutions for buying a contracing business with SBA financing might include:
1. Have an employee with a license stay with the business and utilize their license.
2. Have the owner provide their license (RME) until the new owner gets licensed.
3. Have the buyer study for and complete the contractors licensing exam before taking over. 10/5/06 - Today's SBA Loan Tip For Business Purchase Loans/Financing:
Business Plan May Be Needed For Business Purchase Financing
A business plan is usually requested by most lenders when business buyers get financing to buy a business. Most of the lenders and financial institutions we work with don't require it since we pre-screen our clients carefully and assist with the loan packages. If you don't have a lot of experience in the industry you are buying into, it does help to write a 4-10 page "mini business plan" to demonstrate your knowledge of the industry and business you are planning on buying.
Today's Featured SBA Pre-Qualified Business Opportunities For Sale
1. Sacramento, Yuba County, California based Recreational Motorsports Vehicle Dealer With Commercial Property. Recreational Motorsports Have Quickly Become A New Means For Family Enjoyment Of The Outdoors. The Popularity Of Personal Watercraft, Snowmobiles And Four Wheel Quads Have Increased As Technology Has Increased Their Reliability And Safety. On Any Lake, On Any Weekend, Personal Watercraft Are Everywhere And Are Enjoyed By All Ages. This Is A Unique Opportunity To Buy A Well Know Recreational Motorsports Dealership Located On A Main Street In A Rural Northern California Town. Deal Structure: Price: 500,000, Adjusted Net: 142,000.
2. Bakersfield, Kern County, California based Paint Distributor Business For Sale. Well Established Paint Distributorship Providing Quality Paint And Paint Supplies To Both Business And Individual Customers. This Distributor Carries Some Of The Nation’s Leading Brands Of Both Interior/Exterior Paints As Well As The Best In Automotive Paint. Sale Price Includes The FF&E. The Inventory Of Approximately 200K And The Real Estate Valued At 649,000 Are Available Also. Deal Structure: Price: 495,000, Adjusted Net: 156,000.
3. Washington, District of Columbia County, District of Columbia based Landscaping Service Opportunity For Sale - Extremely Well Run Operation Doing In Excess Of $1M In Revenues.. Landscaping Company, Northern Virginia. Extremely Well Run Operation Doing In Excess Of $1M In Revenues With Good Bottom Line. Great Mix Of Commercial, Government And Residential Work. With Aggressive Sales And Marketing Efforts It Could Be Grown To Well Over The $1.5+M Level. Price Includes Equipment With Estimated Market Value In Excess Of $125K. Owner Retiring And Is Willing To Train New Operators. Deal Structure: Price: 620,000, Adjusted Net: 190,000.
* Note: These businesses have been business pre-qualified only - buyers of these businesses will also have to be pre-qualified - before SBA loan business purchase financing may be obtained. Approximately 32 different factors (buyer/seller info) are evaluated in the SBA loan process for business purchase loan financing.
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