I've come across a business where the owner and one other employee essentially act as the Sales & Marketing team for a branded product, but do not do any manufacturing, shipping. etc. on their own. The suppliers ship directly to the customer. The owner manages the customer relationships and, when necessary, leads some product development work with their suppliers (or what could be viewed as the "Manufacturing division" of the company).
It's an interesting, profitable business with a long history, but I wonder what a SBA bank would think about it since it doesn't really have any assets. Do you have any helpful thoughts to share on the fundability of this type of business? Thanks!
Can distribution companies with no assets receive SBA funding?
by a searcher from Brigham Young University
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lastly, companies whose success is directly tied to the owners efforts are high risk because if the owner got run over by a bus. The business is lost or damaged. Again, if you have the skillset, experience, and expertise to take over all operations over a period time, then it can be done.
one other thought, a bit more complex but attaching another asset rich acquisition to the deal may help with SBA.