SBA Loans / Small Business Financing
Get Your Dade / Broward County Business For Sale Pre-Qualified!
Selling a business is a time-consuming process that involves engaging with numerous potential buyers and knowing how to navigate the resources necessary to close a deal. One crucial step for business owners, agents, or brokers is to pre-qualify the business for SBA loans or business purchase financing before the business hits the market.
Many owners, agents, or brokers might question the necessity of this step, arguing that it is the buyer’s responsibility to secure financing. However, they may not realize how much this oversight can delay the process if buyers do not approach the right financial institutions or lenders. Such delays can waste valuable time, especially when other interested buyers are exploring the opportunity. Ensuring that the business is pre-qualified for financing helps streamline the sale and avoids potential setbacks in securing a deal.
Getting pre-qualified for financing provides valuable insights into the sale of your business. First, it helps determine whether there is a genuine possibility for buyers to secure SBA loan financing, enabling them to pay the seller in full without requiring a note from the seller. Alternatively, it reveals if no buyers will qualify for financing based on your financial and tax information, indicating that you might need to accept a note.
Understanding these aspects beforehand is crucial as it informs you of your options before entering negotiations on deal structures. Additionally, it helps assess whether the selling price aligns with what different lenders consider reasonable. If lenders believe the financial ratios do not match the selling price, it could be a sign that you may need to adjust your asking price.
Getting Pre-Qualified for SBA Loans is Simple
Submit the following info to several qualified lenders for review:
Begin by examining the past three years of business tax returns and financial statements, including the Profit & Loss Statement and Balance Sheet. This initial review allows you to assess whether there is potential for buyers to secure SBA loan financing based on these financials. However, it’s important to remember that other factors, such as the buyer’s creditworthiness, work experience, down payment, and collateral, will also play a significant role in the financing process.
When I work with sellers, agents, and brokers, this financial review is one of the first steps in evaluating the overall sale of a business. It helps set the appropriate pricing, structure the deal, and explore alternative strategies before the business goes to market.
Preparing for SBA loan financing helps avoid delays caused by buyers who might not secure financing promptly, lack competence, or are simply too busy to focus on your deal. Timeliness is crucial, as delays can jeopardize the transaction. Keeping the deal on track and maintaining control throughout the process is essential for a successful sale.