SBA Loan Program May Be A Solution

Banks and other institutions offering SBA-backed loans, such as the 7 (a) loan program, can provide an solution for the would-be business owner who finds himself in this difficult position: A terrific business opportunity has been discovered, but the buyer doesn’t have the collateral usually required to get a business acquisition loan. Yes, he may have some cash remaining after meeting the down payment agreed on, but the available funds will be required to satisfy the business’ operating capital needs. Borrowed cash may be needed to complete the deal.

The benefit of working with an SBA-backed lender is that the loan officer will follow the Federal agency’s guidelines, which often place emphasis on cash flow of the business when there are not enough assets to fully secure the loan. Conventional lenders, by contrast, are less oriented to factoring in seller discretionary earnings generated by the business, when reviewing a loan application.

Analyzing Cash Available To Pay Off Finance Options For Business Purchase

The loan officer may be willing to excuse the borrower’s inability to put up enough collateral to fully secure the loan amount if it’s obvious the business can generate the funds needed to repay the obligation. But getting approval of a request for finance for business purchase objectives may be particularly difficult if the borrower is unable to persuade an SBA-backed lender that the company generates enough cash to support the loan payments. Confusion about how to calculate a company’s cash flow, and determine whether it will enable the new owner to meet the principal and interest installments, may cause a buyer to lose a deal even if there will be ample funds remaining for loan service, after all cost of sales and overhead expenses have been deducted from gross revenues. One difference in the way a borrower and a lender calculate revenues available for repayment often hinges on how each evaluates add-backs. Non-recurring expenses also can confuse the issue, with the buyer showing where more earnings can be anticipated than are shown in the company’s financials.

The aid of a skilled specialized business loan broker often can resolve the disagreements when a buyer is having trouble getting the finance for business purchase objectives. The loan specialist’s experience may equip him, or her, to demonstrate, to the satisfaction of an SBA-backed lender, that the business does generate the money the borrower will need to meet the debt obligations.

Contact Us Today or Call Now!  800-540-1811. Find out why more business buyers and sellers every day rely on BizBuyFinancing to finalize their business purchase loans!

Today’s Featured Businesses Pre-Qualified By Business Lenders For SBA:
1. Sacramento based health club opportunity for sale – Here is an opportunity to become part of the growing health & fitness industry. This health & racquet club has it all! Tennis courts, racquetball courts, certified personal trainers, fit for life programs, over 45 group exercise classes per week (including group cycling, yoga, Tai Chi, body sculpting & toning, Karate, circuit training and water aerobics to name a few) indoor and outdoor swimming pools, childcare facilities, message therapy, dry heat saunas, social events and parties for it’s members, health & fitness seminars, pilates reformers, snack bar, summer day camps, lockers rooms, cardio equipment, as well as the weight and exercise equipment areas. This club is in a community that has a built-in customer base and very little competition. The seller has been running this club absentee and has a general manager on site to oversee the facilities and programs. This is a very exciting opportunity, and won’t last long. Deal Structure: Price: $982,126, Adjusted Net: $284,065.

2. Houston, Harris County, Texas based commercial printing business for sale – Commercial printing company. Provides printing services for local city government under a 5 year contract with 2 years remaining and expected to be renewed for an additional 5 years. Provides commercial printing for hotels, both locally and nationally. Also provides thermographic and digital printing. Currently doing mainly set-up work and then subcontracting the actual printing tasks. Low overhead with maximum profits. Seller owns real estate with 12,250 sf building. Company uses approximately 6,250sf and remaining 6,000 sf is rented to two tenants on month-to-month lease. Seller financing available for qualified buyer. Pls. refer to cbb listing #6790kb. Deal Structure: Price: $1,300,000, Adjusted Net: $545,385.

* 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.

Today’s Featured SBA Pre-Qualified Businesses For Sale:

1. Houston, Harris County, Texas based civil engineering company for sale – Company has been providing professional civil engineering/surveying services for 26 years, including topographical and land title surveys and civil engineering design. Clients are both private and public. Private projects include property development, subdivisions, apartment complexes, office/warehouse complexes. Public projects include roads, drainage, sewage facilities, utilities and traffic control. Company has excellent reputation for quality and performance. Company owns large library of land title surveys which lead to repeat business. Long term, established clientele. Experienced staff includes two licensed professional engineers. Owner holds P.E. & R.P.L.S. licenses. Note that 2007 discretionary eanings include payment for a large project where work was perfomed in previous years. SBA financing. Please refer to cbb listing #6786fs. Deal Structure: Price: $600,000, Adjusted Net: $921,428.

2.  Vero Beach, Indian River County, Florida based casino style arcade business for sale – Lucrative money making arcade in Vero Beach. Established in 2003, this business has a proven track record and reputation. The business occupies 2,640 sf and the base rent is only $12 psf. The business consists of 65 machines (owned) and includes all FF&E. Immaculate records. Owner is willing to train. Owner relocating. Owner financing is available. Deal Structure: Price: $500,000, Adjusted Net: $100,000.

* 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.

1. Maricopa County, Arizona based dry cleaning plant business for sale – Great location in basha’s supermarket strip mall. A current average net income much more than $10,000/month with lots of potential for more. Still business is growing very fast. Furthermore, there are many new upgrades including washer, dryer, and press. Low monthly rent and long term lease. Deal Structure: Price: $100,000, Adjusted Net: $120,000.

2. Sacramento based lighting store company for sale – This is a turn-key operation that is easy to learn. This business sells all types of lighting fixtures and fans. They outsource all of the installation to an electrical contractor. They have a client base of over 8,000 customers that include both residential and commercial. They do bids on commercial projects and will design/build for new homes. They do a lot of work for contractors and interior designers. Due to health reasons the owner has priced the business for a quick sale. This business is prices at around 1 times cash flow plus inventory. Deal Structure: Price: $350,000, Adjusted Net: $122,127.

* 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.

Today’s Opportunities Pre-Qualified For A To Buy A Business:

1. Inland empier area based commercial sign manufacturing opportunity for sale – This very profitable full-service commercial sign company with an excellent reputation and outstanding clientele does it all revenues are up by 13% in 2007 over 2006 and net is up by 44% – due primarily to higher gross margins. They provide design, manufacturing, and installation of virtually every type of signage including: electric, neon, led, monument, 3d building identification, yard signs, and vehicle graphics and own all the vehicles and high-tech equipment needed to do the work. The company also does a brisk silk-screen and banner business. Approximately 75% of revenues are from repeat and referral business. The company does some sub-contract work for other, less capable, sign companies.

Margins and net percentages are up and the books and records are clean with minimal add-backs. This is an ideal business for an experienced manager with good customer service and sales/marketing skills. The operations partner is willing to continue with the business. The business has been pre-qualified for sba financing.

General Information:

Year Established: 1993

Employees: 6 full time with monthly payroll of 16,750.

Facility: 4,800 square feet at a total lease cost of 3,015/month.

Price Includes: Furniture, equipment and tenant improvements at a cost of 332,100. inventory of approximately 8,000 not included.

Support/Training: Seller will provide training.
Reason For Selling: Retirement

Deal Structure: Price: $795,000, Adjusted Net: $323,500.

2. Houston, Harris County, Texas based commercial printing business for sale – Commercial printing company. Provides printing services for local city government under a 5 year contract with 2 years remaining and expected to be renewed for an additional 5 years. Provides commercial printing for hotels, both locally and nationally. Also provides thermographic and digital printing. Currently doing mainly set-up work and then subcontracting the actual printing tasks. Low overhead with maximum profits. Seller owns real estate with 12,250 sf building. Company uses approximately 6,250sf and remaining 6,000 sf is rented to two tenants on month-to-month lease. Seller financing available for qualified buyer. Pls. refer to cbb listing #6790kb. Deal Structure: Price: $1,300,000, Adjusted Net: $545,385.

* 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.

Today’s Listings Pre-Qualified For Business Acquisition :

1. Utah based advertising agency business for sale – Established in 1994, this full service advertising agency provides innovative creative services, media, and printing. They have built an enviable national client base of national and regional brands, which they service from offices in the intermountain west and southeast. Gross profit has risen every year since 2002, and is poised for continued growth. Long term, well established relationships with both employees and clients are key value drivers for the company, and the principals are committed to remaining involved post transaction to insure these relationships stay in place.

Since 2005,they have been focusing on improving gross margins and increasing profitability. While revenues are subject to clients’ budgets and have declined over the last few years, the company has improved its gross margins, from 37% in 2005 to 61% in 2007. Adjusted ebitda growth has followed suit, increasing from 11% of sales in 2005 to 26% in 2007. Deal Structure: Price: $1,500,000, Adjusted Net: $512,377.

2. Sacramento based health club opportunity for sale – Here is an opportunity to become part of the growing health & fitness industry. This health & racquet club has it all! Tennis courts, racquetball courts, certified personal trainers, fit for life programs, over 45 group exercise classes per week (including group cycling, yoga, Tai Chi, body sculpting & toning, Karate, circuit training and water aerobics to name a few) indoor and outdoor swimming pools, childcare facilities, message therapy, dry heat saunas, social events and parties for it’s members, health & fitness seminars, pilates reformers, snack bar, summer day camps, lockers rooms, cardio equipment, as well as the weight and exercise equipment areas. This club is in a community that has a built-in customer base and very little competition. The seller has been running this club absentee and has a general manager on site to oversee the facilities and programs. This is a very exciting opportunity, and won’t last long. Deal Structure: Price: $982,126, Adjusted Net: $284,065.

* 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.

Today’s Featured SBA Loans Pre-Qualified Business For Sale:

1. Monmouth County, New Jersey based restaurant business for sale – Absentee managed, zagat rated fine dining restaurant, showing great returns. All figures are documented. Award winning wine list, situated in the middle of affluent monmouth county dining community. Extremely attractive spacious dining rooms, seperate bar area. New kitchen & equipments service, staff are well eductaed. Diner base is growing and with over $60 per person check average. Profits are increasing-now allowing reservations for larger functions, never booked them before. Not too much of a down fall from summer months. Has parking, fantastic opportunity for knowledgeable owner/manager. Deal Structure: Price: $1,125,000, Adjusted Net: $232,433.

2. Virginia Beach, Virginia Beach City County, Virginia based bar and restaurant company for sale – Very attractive sports bar & casual restaurant, remodeled in 2006. Almost all local clientele that regularly frequent the business for sports events and fun. Excellent food and staff make this a very friendly place for the locals to hangout. Most can walk home. A restaurant has been at this location for over 60 years. Deal Structure: Price: $485,000, 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.

Today’s Listings Pre-Qualified For Business:

1. Reno, Washoe County, Nevada based landscape contractor business for sale – This business is one of the best design/build landscape construction businesses in the area. Built from the ground up over the past few years, it has an excellent reputation for providing innovative designs, excellent quality plant products and other services like paving, water features and efficient irrigation systems. Truly unique to this business is the full-time horticulturalist employee.

The business is located in a 1,500 sq. ft. modern office building on a 1.25 acre lot. Sample landscape designs are available for potential clients to see. The business has excellent cash flow, a well established client base, stable and experienced staff and a great position in the local market.

The owners will consider some financing and/or the sale of the property to a qualified buyer. Deal Structure: Price: $1,500,000, Adjusted Net: $459,593.

2. Southern California based perfume and cosmetics boutique for sale – Don’t Miss This Rare Opportunity To Own This Premier, European Styled And Richly Displayed, Perfume And Cosmetics Boutique. Acclaimed By Perfume 2000 Magazine, As “A True Parfumerie, The Most Elegantly Designed And Beautifully Planned Perfume And Cosmetic Specialty Store Seen In The United States; Even For European Standards.” And As Aptly Put By Its Very Owner, This One-Of-A-Kind Business Opportunity Possesses A Dynamic Blend Of “Location, Product, Employees, And Customer Service” That Equate To A Proven Formula For Success And Longevity. Products And Services Provided Include Over 500 Fragrances For Men And Women. Exclusive And Sought After Skincare, Cosmetic, And Hair Care Products Are Also Available For Men And Women. In Addition To Product Lines, An Assortment Of Skincare Services Are Offered Including Facials, Waxing, Micro-Dermabrasion, And Peels To List A Few. Its Client Base Is Distributed Evenly Between Local Residents, So. California Residents And International Consumers.

Marketing
It Is Believed That No Single Source Of Marketing Accounts For A Majority Of Business Thus A Multifaceted Approach To Marketing Is Undertaken. In This Vein, A Variety Of Marketing Tools And Resources Are Employed. Internet, Print Media, Telephone, Print Publications, And Image Ads Comprise The Comprehensive Market Strategy Currently In Place. The Existing Market Share Is Broad Extending To Local, National And International Markets.

Strengths & Opportunities
Unparalleled Product Selection & Unique Services; Impeccable Reputation; Sought After Customer Service; Well-Established Market Presence; Minimal Competition; Internet Market Share; Turnkey Operation; Organized Business Structure; Location; Broad Product Distribution; Year-Round Sales Cycle; Consistent Financial Base

Hours & Staffing
Open 7 Days A Week, 9am To 6pm Mondays Through Saturdays And 11am To 5pm On Sundays. Open Select Holidays. Due To The Storefront Nature Of The Business, A New Owner Could Easily Expand Hours Of Operation And Capture A Portion Of The Evening Market.

Area, Facilities & Equipment
In Addition To The Main Floorshow/Sales Area, The Facilities Offers A Fully Equipped Office With (2) Work Stations, (1) Bathroom, Kitchen/Storage Area, (2) Fully Equipped Esthetician Rooms And (1) Shower Located In Esthetician Room. The Entire Facility Has An Assortment Of Display Tables, Shelving, Partitions, Kitchen Utilities (E.G. Refrigerator, Microwave, Etc.), Cabinets, Product, Cosmetic Stations, And So On.

Company History
Originally Established In The Netherlands (1972) And Founded By The Seller, The Company Was Relocated To America (1982) And Has Since Enjoyed A Long And Prosperous Presence In Its Present Location.

Financial Summary
With Respect To Fragrance, Skincare Products And Cosmetics, Pricing Adheres To Manufacturers’ Suggested Retail Price And Enjoys A 40%-50% Profit Margin. Accessories Enjoy A 60%-70% Profit Margin As Currently Priced. Negotiable Verbal Agreements In Place With Existing Vendors.

Other Comments
Facility Is Currently Underutilized With Approximately 90% Of The Operable Facilities In Use. Currently, Only (1) Esthetician Room Is Being Used On A Part-Time Basis. Fully Utilizing Skincare Service Facility Is An Area That Represents A Significant Potential Area Of Growth. In Addition, Increased Website Placement And Marketing As Well As Promoting The Consultation And Customization Services Also Present The New Owner With Additional Potential Areas Of Growth. Deal Structure: Price: $800,000, Adjusted Net: $286,327.

* 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.

Today’s Featured SBA Pre-Qualified Businesses For Sale:

1. Tampa, Hillsborough County, Florida based water purification company for sale – An opportunity to take over a strong business model with high margins and growth opportunities throughout the state of Florida. Current business location is on a month to month lease so it could be relocated. 12 of the employees are 1099 commission representatives. You must talk with the owner to gain an understanding of the true potential earnings of this business as well as the current repeat business which is consistant cash flow. Deal Structure: Price: $1,000,000, Adjusted Net: $240,367. 

2. Kansas City, Jackson County, Missouri based pharmacy listing for sale – Established over 30 years ago, this pharmacy serves a specific market niche with exceptional service. This market niche is a defendable position against other neighborhood pharmacies and serves a fast growing demographic. In addition, it is located in a very busy medical building plaza near a major hospital which allows for terrific new customer referral opportunities from doctor’s offices. A pharmacist/owner can maximize the cash flow opportunity as well as establish relationships with doctors practicing in these buildings. Finally, since it is located in a medical plaza it is only open Monday through Friday from 9am to 5pm. Deal Structure: Price: $800,000, Adjusted Net: $280,000.

* 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.

Today’s Featured SBA Financing Pre-Qualified Business For Sale:

1. Lee County, Florida based casino style game room opportunity for sale – Casino style game room – an absentee owner’s dream – 71 server based and networked gaming machines plus video surveillance. All internet accessible to facilitate a complete remote management capability. Popular location with great parking. Highly visible signage located on the main artery in the community. Numbers shown are through October 31, 2007. Deal Structure: Price: $660,000, Adjusted Net: $318,431.

2. Birmingham, Jefferson County, Alabama based moving & storage service business for sale – Full service relocation company that provides local and long distance moving services. The business caters to residential and commercial customers and offers a variety of moving services such as relocating large pieces within the same home or office.

The business has earned an excellent reputation in the market and is positioned for continued growth. Deal Structure: Price: $375,000, Adjusted Net: $122,492.

* 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.