Get Reviewed and Prequalified For Financing So You Can Leverage Your Business Purchase.
Getting prequalified for financing by lenders is very important for two specific reasons.
1) 90% of all small businesses sold have some form of financing involved.
2) One of the biggest reasons that deals falls through is because the buyer could not obtain financing.
While some sellers are willing to provide partial financing to a qualified buyer, they would much rather the buyer be able to get third party financing so they can receive their cash up front at closing. Wouldn't you? The seller takes a considerable risk on a buyer he doesn't know too well and can only hope that the buyer will be successful in running the operation.
The usual cash injection (down payment) required by SBA and other lenders in the purchase of a small business is generally around 20% to 30% and the rest is financed. This, of course, is based on your personal financial standing and background. You will need to submit personal financial information and a work resume.
By having a lender review your financeability and background upfront, the lender can then give you valuable Intel on the types of businesses they would take into consideration for financing based on your skill sets and what they would deem to be transferable to different types of businesses or industries. Not only can you narrow the scope of the types of business you research, you would also know exactly what price range to target.
All of this adds up to the serious, prepared, perfect buyer! A rare species in the land of business brokerage. You'd get the red carpet treatment for sure by business brokers and sellers alike.
Keep in mind that the business you choose must also be financeable. The business must pass the lenders test. For instance, the company's financials must be reviewed by the lender so they can determine if the business can produce the income required for you to make a living after making payments on the loan that they will be providing.
The point to be made here is that you, as a person looking for the "perfect" business to buy, will be ready to pull the trigger when it appears. There are more buyers than sellers in today's business transfer marketplace. You will have an advantage, you will be a step ahead of the rest of the crowd.
Ms. Stabler is the Managing Partner of Certified Business Brokers. She has 25 years of business experience serving in management and consulting positions in the Oil & Gas, Biotechnology, and Manufacturing industries.
In 1992 she started a company that sold her original products at over 100 retail locations nationwide. These products were of original concept and new to the marketplace. An international presence was established in the marketplace with the evolution of the internet and the introduction of website sales. "I have been fortunate to experience two types of business ownership. First, turning a vision into a new business venture that far exceeded expections. And, second, purchasing an outstanding existing enterprise that fulfills the entrepreneurial spirit almost as much as the former."
Rose has in-depth knowledge in many aspects of business operations from initial start-up to its sale. Having been both a buyer and a seller she is keenly aware of the concerns of those on either side of the table.
MEMBERSHIPS:
Texas Association of Business Brokers (TABB)
· Currently serving as V.P. of Marketing and Secretary of the Board (Houston Chapter)
International Business Brokers Association (IBBA)
LICENSES:
Texas State Securities Board Registered Agent
EDUCATION:
University of Houston - O.D. Optometry
- Related Videos
- Related Articles
- Ask / Related Q&A
- Buying a Small Business - Get Prequalified for Financing
- Small Business Startup: How A Beer Company Turned Problems Into Profits
- Small Business - Improve Your Image, Improve Your Sales Identify Your Target Audience
- Small Business Bank Q&A
- Factoring Company Funds Small Businesses Crucial to Supply Chain
- Case Study: Small Business Branding By Maid In The Shade
- Small Business Lead Generation Austin
- Small Business Health Insurance Basics In Texas
Online Home Business Opportunity in Australia
By: Benard Worseley | 23/12/2009If you’re like me, you’re probably looking for time freedom and want to escape the confines of an office, then I suggest you think about an online home business opportunities in Australia. Venturing into this type of work will enable you to experience time freedom and earn money at home at the same time.
The Newbie and the State of the Internet
By: David J. Boozer | 23/12/2009I am not the only one that hears how bad the economy is right now. For many of you who thought before this calamity about starting your own business online, I ask you this...what are you waiting for?
Why You Need to Keep Apprised of Local Business News
By: Frank I Locust | 22/12/2009Keeping up to date on your local news is vital to the success of your company. No matter what type of news you’re tracking – economic, weather, sports, neighborhood, national – it will all help you attend to the needs and concern of your customers, and produce better business service overall. Keep these tips in mind as you try to track the news in your chosen market.
Opportunity To Let Crime Put Money In Your Pocket! After The Holidays YOU Can Sell Pepper Sprays For Quick Cash Profits!
By: Father Time | 22/12/2009Self defense pepper sprays sell like crazy on impulse, and are not already available at every corner store! As long as you are in the USA, over 18, and are not in MA, MI, NY, or WI, you can order a small quantity of pepper sprays at wholesale, to sell to people in your town for a quick cash profit!
Is Commuting Stress Ruining Your Life?
By: Zurieka Model | 22/12/2009This modern day western world is infatuated with convenience and speed. Dishwashers save time in the kitchen, washing machines save time in the laundry and nowadays millions of people don’t even have to leave the comfort of home to do shopping and banking anymore. They merely turn on their computers and make use of the Internet.
Vehicle Contract Hire – The Greatest Alternate to Absolute Possession
By: Aleks G | 22/12/2009Auto contract hire has been thought about by countless automobile drivers for whatever purpose that they like.
Global Online Business Model
By: Zurieka Model | 22/12/2009In this day and age it seems like there are so many business schemes or scams as I’d like to call them out there, that you really are hard pressed to find something that actually works in your favour and is a legitimate business model!
Buying a Small Business - Get Prequalified for Financing
By: Rose Stabler | 30/12/2007 | Business OpportunitiesThere are more buyers than sellers in today's business transfer marketplace. If you are already approved as credit-worthy by a small business lender, you will be a step ahead of the rest of the crowd