After waiting more than three weeks to learn that his selected lender was not going to be able to provide financing on his $1.5 million business acquisition, the buyer and his partner decided to participate in the Loans4Biz (L4B) program – a service provided by CBI’s Management Team to buyers/borrowers who need to obtain financing for acquisitions.
Kelly Tivis, the Loans4Biz Program Administrator, quickly identified a lender that was very interested in the deal and was willing to meet with the buyers as soon as possible to get the loan process started.
Kelly gave the lender access to all documents required by the lender that had already been gathered from the business owner / seller and the buyers. He then coordinated efforts with the lender to obtain any other documents needed from all parties.
Although the buyers had included a 20% down payment (aka equity injection) in the structure of their offer, the lender believed that an equity injection of only 10% was needed so the lender proposed an alternate financing structure to the buyers. In addition to including $44,000 for working capital and closing costs, the lender agreed to a $150,000 SBA Express Line of Credit for the operation of the business…additional funds that were available to the buyers, if needed. This lender understands the importance of having a sufficient amount of working capital when a buyer takes over the operation and management of a recently acquired business.
Upon closing, the seller was happy that he could begin enjoying his retirement (after a short period of training) and the buyers were excited about the possibilities tied to being the new owners of a very successful business.
The Loans4Biz program saves participants time and money by offering the following benefits:
– Assistance with gathering and completion of documents required by most lenders
– Initial communication with all lenders managed by the Loans4Biz program manager
– Much better chance of finding a lender who is interested in providing a loan
– A number of financing options presented for consideration
– Thousands of dollars of interest saved over the full term of the loan
Although the Loans4Biz program was created to assist buyers of businesses listed by CBI, the benefits of using the Loans4Biz program are available to anyone who needs assistance with financing…whether or not you are buying a business listed by CBI.
To learn more about the Loans4Biz program, contact Kelly Tivis @ 479-770-8989 or firstname.lastname@example.org