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We can't even begin to count the number of "deals" that have fallen through because of financing. Buying a business is not like buying a house. They are apples and oranges events. Buyers and Sellers waste huge amounts of time arguing over price ...just to find out that the lender will not finance the sale. Why put yourself through this
aggravation? If you have a properly prepared financial package your chances for getting financing increase tremendously!
A simple way you can understand the lending process is by thinking of the four "C's" -- Cash, Credit, Collateral and Character. Each of these factors plays a fundamental role in your ability to acquire both SBA or standard commercial financing. First you must have sufficient cash, commonly referred to as equity to arrange financing. Typically this may be in the 20-30% range. Next, your credit must be excellent. Collateral may include stocks and bonds, 401Ks, investment real estate and other assets as security for the loan. Finally your character must be sound and your background must demonstrate the experience, education and ability to be successful in your new business venture.
As a Buyer you can pre-qualify by providing the lender with personal financial information to assess your credit profile. Once you have decided upon a business and executed a contract, the lender will review the deal structure and make an initial internal inquiry to assess the interest by bank or institutional executives. Once accepted internally, you and your lender complete the necessary documentation to submit the loan. The Seller will also provide tax returns and other key financial statements to support the process, and the loan officer then prepares the final package for submission. Once received by the lender the package is reviewed and a response is given. Often there are additional documents and conditions necessary to finalize and approve the loan. From start to finish this process can take as little as three weeks but may take as long as 4 to 6 weeks for completion. Go to
are sister company American Atlantic Mortgage,
www.comloans.biz to check rates and make application for your loan.
Also for further Information and Programs
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