Certified Business Loans – A Small Business Loans Company, business acquisition loan.#Business #acquisition #loan
Certified Business Loans
Have a business, and need a fiscal boost to get the money ball rolling? Getting a small business loan is easier than you think. Our business loans are the next step in your success story. In a world where change is constant and growing in complexity, there is one certainty: your business needs capital to grow.
It can be challenging to get financing. That’s why Certified Business Loans offers diverse solutions suited to your business.
We work with you to find the financial fit for your business, with a customized business loan.
Not sure what loans best fits your unique needs?
No matter what type of business you own, we’re available with instant approval processing upon completion of your application.
We have fixed and flexible repayment options. Our loans allow you to keep a positive cash flow so you can stay focused on more important things, like running you business.
Business equipment loans, inventory loans, emergency business loans, expansion loans, or cash flow loans. QC offers a variety of options to help secure your success.
How Much Do You Need?
Certified Business Loans now offers a variety of loans ranging from $5,000 to $250,000. Loans under $20,000 can be approved in as little as an hour while those over can be completed within a single business day. Loans ranging from $20,000 to $250,000 through leveraging future sales can be available within 5 short days.
*Our minimum loan term period is three months. We do not offer short-term loans of 60 days or less. If your company needs more than $500,000, call us at 1-800-331-5542
Funding your business shouldn’t be a full time job. That’s why Certified Business Loans are the #1 choice for small businesses.
- CertifiedBusinessLoans.com provides small businesses nationwide with working capital. We’ve been providing loans to small businesses like you for 5 years.
- An application for a small business loan from Certified Business Loans can be reviewed in less than 24 hours. Once you are approved, you’ll usually get your funding within seven to 10 days.
- If you decide to go with a traditional bank loan versus our merchant cash advance, it can take several months to get your money. When you need immediate working capital, Certified Business Loans fast and flexible programs have a distinct advantage over a complicated bank loan.
In The News
- Certified Business Loans just attended the 8760 meet and greet with NBA All-Star Steph Curry.
- Steph Curry was running a basketball clinic for kids in the New York City area.
- Shawn Haber – CEO of Certified Business Loans is proud to Support 8760 EXPERIENCES.
More Amazing Loan Options
Securing a certified business loan can do a lot of good for your up-and-coming company. It can help you move forward with more ease and confidence.
This can be useful to business owners who want to save considerable amounts of time. Certified Business Loans can also make things straightforward and simple for borrowers. That’s because they don’t usually require overwhelming amounts of time-consuming paperwork.
These loans have terms that are basic and easy to understand. That can mean the world to business owners who just want to get things going.
Options in certified business loans are truly abundant.
Business owners can choose between inventory loans, equipment loans, cash flow loans and expansion loans. They can opt for numerous certified business loans at the same exact time if they want. They can sometimes even focus on emergency loans. Certified business loan amounts run the gamut as well.
Some are as low as merely $5,000.00. Others, however, are as high as $250,000. Loan amounts depend on many diverse factors. They depend on business’ specific goals and objectives. They depend on business owners’ financial backgrounds and capabilities as well. Business owners should always aim to find certified loans that are 100 percent ideal for all of their aims and aspirations.
Loans For Business Acquisition – Payday Loans Online, business acquisition loans.#Business #acquisition #loans
business acquisition loans
Business Acquisition Loan
A business acquisition loan allows you to buy a company that’s already up and running, open a new franchise location of an established company, or buy out your partner in a business you already own.
At a Glance
With a business acquisition loan, you can purchase a company that already has a successful history.
You can also use acquisition financing to buy out your partner(s) in a business you already operate.
Advantages & Disadvantages
- Relatively low APR
- SBA financing may be available
- May be easier than securing start-up financing
- Variety of loan types available for acquisitions
- Lengthy application process
- Collateral sometimes required
- May require a personal guarantee
- Must prove viability of the target business
- Down payment (up to 50%) sometimes required
What Is A Business Acquisition Loan?
A business acquisition loan allows you to buy someone else’s existing, profitable business.
It also allows you to buy out your partner(s) for a business you already own.
In addition, business acquisition loans can be used to finance the purchase of a franchise, especially a well-established one with many locations and a proven model for success.
It’s best to use a business acquisition loan to purchase a thriving company; turnaround financing is much more difficult to secure.
How Business Acquisition Loans Work
To secure small business acquisition financing, you’ll need to prove that both you and the business present minimal risk to the lender.
You can do this by providing ample documentation of both your personal finances and the business’s finances.
Good credit, minimal debt, and profitability are key.
Small business acquisition loans are available from banks and sometimes from the business seller.
If you can’t secure financing by other means, try getting an SBA loan to buy a business.
with lenders that want to work with you.
choose your own financing at any time!
The best type of business acquisition loan for your situation will depend on how strong your personal financial credentials are as well as how strong the business’s finances are, plus the amount you need to borrow and the length of time you need to pay it back.
The interest rate and fees you’ll pay on a business acquisition loan depend on whether you secure seller financing, a term loan, or an SBA loan.
In general, expect to pay an interest rate of somewhere between 3% and 10% with a fixed or variable interest rate.
Loan fees may include application fees and third-party closing costs.
If you’re getting an SBA loan for longer than one year, you may have to pay a guarantee fee of 3% to 3.75% depending on the amount borrowed unless the lender chooses to pay it (which usually means you’ll make up the cost elsewhere in your loan).
Which Loans Are Best for Funding A Business Purchase?
A business’s existing owner will often lend the new buyer money – possibly up to 70% of the purchase price – to help with the acquisition.
The buyer gives the seller a down payment for the rest, then repays the loan in fixed amounts over a predetermined period or in payments based on the business’s future performance (called an “earn-out”).
Seller financing can also be combined with other forms of business acquisition financing.
Seller financing allows for great flexibility in loan terms and offers some reassurance that you are making a good decision:
It tells you that the current owner expects the business to continue to be profitable.
The process may also be quicker and easier than securing bank financing.
Borrow money from a bank and make fixed monthly payments for a predetermined number of years.
The drawback of this common and easy-to-understanding financing option is that you may need to apply with several business acquisition lenders before you get approved, and the applications can be long.
Some term lenders offer interest-only payments and promise a short application process and funding in just a few days, however.
This bank-issued, government-guaranteed loan may allow you to borrow up to $5 million even if you’re turned down for other loans (that being said, the average loan amount for fiscal year 2015 was about $372,000).
Expect to put down 10% to 30%.
You’ll need a personal credit score of at least 680, and lenders would prefer that you have several years of industry or business management experience.
The business you want to buy should be financially strong, and you should be able to put up business or personal assets such as inventory, equipment, working capital, or real estate as collateral.
Startup loans are harder to qualify for, but they are available for new entrepreneurs.
They function similar to term loans, but startup funding comes from very specific lenders who are willing to work with a lack of revenue or credit history on the part of the business being purchased.
If the majority of the purchase price for the business you re acquiring is based on the value of equipment being transferred, an equipment loan might be the right source of financing for your business acquisition.
Think of equipment financing like an auto loan: you can only borrow against the value of the asset, and the asset itself serves as collateral.
If seller financing, term loans, and SBA loans are out of reach, you might consider financing a business acquisition using your retirement account or a home equity loan.
Keep in mind though, that these options will put your personal assets at risk.
How To Qualify
Lenders won’t necessarily have hard cut-offs on particular loan qualifications; what they’ll want to see is a strong overall picture.
So, for example, if you have excellent credit and high-value collateral, the lender might only require a small down payment of 10%.
If you have merely good credit and good collateral, you may need double or triple the down payment.
Even with excellent personal finances, it may be irrelevant if the business is in terrible shape.
Demonstrate that the lender won’t be taking on too much risk; show that you and the business you want to buy are strong candidates to repay every penny with interest.
Specific business acquisition loan requirements vary by lender and loan type, but all will want to see a strong personal and business financial history.
If you want to get a loan to buy a business, it will need to show at least two to five years of stable or growing revenue and overall profitability.
If the business has any financial weaknesses, you may be able to compensate for them by pledging sufficient collateral.
Lenders may not include name recognition and industry goodwill in their decision since these assets are difficult to value and might be unique to the current owner.
Business acquisition lenders look more favorably on professional services firms with steady income, such as medical and dental practices, veterinary practices, accounting firms, and law firms.
They look less favorably on risky businesses such as restaurants, strip clubs, and gambling establishments.
They also consider buyouts less risky since you have already shown some experience running the business successfully; the perceived risk of instability is lower.
Lenders will want to see two to three years of your personal tax returns.
Having a credit score of 680 or higher will give you the best chance of getting your business purchase loan approved, and a higher credit score will help you secure a lower interest rate.
You’ll also need a personal financial statement and verification of your down payment and/or collateral.
You may be asked about your personal history of bankruptcy or foreclosure.
For SBA loans, you must not be delinquent on any debt payments you owe to the U.S. government.
The current business owner will need to provide the lender with information about its financial condition.
The lender will want to see a balance sheet showing the value of the company’s tangible, fixed assets (some of which could serve as loan collateral) and its liabilities and debts. They’ll also want to see two to three years of tax returns and an income statement.
Lenders desire strong cash flow, profitability, and reasonable debt levels (or no debt at all).
The business should also have a good credit score and not be delinquent on payments to lenders, suppliers, or employees.
If the lender discovers a problem with the business and rejects your application, you will probably feel disappointed at first, but try to look at the outcome this way:
You’ve been spared a a risky investment!
How to Apply for a Business Acquisition Loan
In addition to the loan application, you’ll typically need to submit the following documents to apply for a business acquisition loan:
Requirements for a Business Acquisition Loan, business acquisition loan.#Business #acquisition #loan
Requirements for a Business Acquisition Loan
This article discusses the main requirements you must meet to qualify for an SBA 7(a) loan. This type of loan is one of the most common financing tools used by small business owners to finance a business acquisition.
A Quick Word on SBA Loans
The term SBA Loan is a bit of a misnomer because the SBA does not lend money directly. Rather, it provides certain guarantees to financial institutions, who, in turn, make loans. The bank itself makes the loan and takes some of the risk. This detail is important because each bank s requirements are likely to differ.
Business Acquisition Loan Requirements
Banks participating in the SBA loan program usually consider the following criteria when evaluating a potential borrower:
1. Reasonable personal credit
To get a business loan, the borrower (or some of the borrowers, if a group is seeking a loan) must have decent personal credit. Most institutions will work with credit scores from 650 to 690.
2. Signed letter of intent
You give the seller of the business a signed letter of intent that states the proposed terms for the acquisition. You must provide a signed letter of intent to get a term sheet. There are no exceptions to this requirement.
This requirement is often viewed as a potential catch-22. Buyers don t want to make an offer to the seller until they have qualified for funding. And lending institutions are not willing to provide terms until they see the letter of intent. However, the solution is simple. A well-crafted letter of intent should contain a clause stating that the offer is contingent on getting financing. This clause is common in business acquisitions and gives the buyer a reasonable time-frame to find financing.
3. Borrower information form (Form 1919)
This form is used to collect information about the principal(s), key individuals in the business, and guarantors, along with information about any current or past government financing. You can find the form here.
4. Personal financial statement (Form 413)
The personal financial statement contains all relevant financial information about you, your business partners, each owner with more than 20% equity, and each guarantor. This detailed form is used to determine your repayment ability and creditworthiness. This form can be intimidating don t let it be. Remember that the SBA provides the bank with a guarantee on your behalf specifically to help borrowers that wouldn t otherwise qualify for a loan. You can find the form here.
5. Three years of personal/corporate tax returns
As part of the application package, you need to provide three years of personal tax returns. Additionally, you must provide three years of corporate tax returns on the business that you are looking to acquire.
6. Three years of business financial statements
As part of the application package, you must provide three years of financial statements for the business you plan to acquire. Most banks ask for Profit and Loss Statements, Balance Sheets, and Cash Flow Statements.
7. Debt schedule
As part of the application package, you have to provide a debt schedule that lists all the debts/liabilities of the business.
8. Management experience
To qualify for a loan, some (or all) of the applicants must have substantial business experience. It is better if your experience is in the same industry of the business that you are trying to purchase, but that is not always a requirement. Ultimately, you have to prove to the participating lender that you are able to manage the business that you plan to buy and that you are a safe risk.
9. Debt service coverage ratio
The debt service coverage ratio is the ratio of cash that is available to service debt, interest, and lease payments. It s calculated by dividing the Net Operating Income by the Debt Service. The higher the ratio, the easier it is to obtain a loan. At a minimum, the business you are going to buy should have a debt service coverage ratio of 1.15.
10. Down payment
As a rule, SBA bank participants prefer that the owners make a down payment of 20% of the total value of the business. Yes, this number is high, but it shows the lender that you are committed to the business. You can reduce your down-payment requirement by convincing the seller to extend some financing to you. Note that for this strategy to work, the seller must also be willing to take a two-year standby/standstill. Even if you get seller financing, you must be able to provide a minimum down payment of 10%.
Are you looking to finance a business acquisition?
Are you looking to finance the acquisition of a business? We may be able to help you. Please do not call the number above. Instead, fill out this form and a representative will contact you shortly.
Business Acquisition Loans – Payday Loans Online, business acquisition loans.#Business #acquisition #loans
business acquisition loans