Obtaining A Loan For Buying Businesses
April 27, 2021
by a searcher in South San Jose, San Jose, CA, USA
Hello Everyone,
I am new to buying businesses, but have built and owned 4 of them. I need some help with obtaining or help with learning how to do this.
I am open to suggestions and opinions, so please feel free to jot down anything that might help.
https://www.linkedin.com/in/aaron-garcia-ab0170203/
Thank you,
Aaron G.
from Stanford University in Honolulu, HI, USA
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* SBA 7A lending: https://youtu.be/BOd_CWGz0bw
* SBA War Stories & Lesson Learned: https://www.searchfunder.com/event/view/264
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* Getting to Close During Covid:
* https://www.searchfunder.com/event/view/282
* ^redacted & ^redacted:
* Landing the Whale: https://www.youtube.com/embed/nhYIHBfCpTQ
* ^redacted & ^redacted & ^redacted
* Post-Acquisition Financing: https://www.searchfunder.com/event/view/282
* SBA War Stories & Lesson Learned: https://www.searchfunder.com/event/view/264
* ^redacted & ^redacted:
* https://www.searchfunder.com/event/view/338
* ^redacted
* Best Practices When Dealing with Banker: https://www.searchfunder.com/event/view/42
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from Vanderbilt University in Short Hills, Millburn, NJ, USA
2. B2B or B2C assessment - How comfortable are you in direct sales or managing a sales team? If yes, then you should consider a B2B business, if no then you need to rely on marketing, advertising and SEO optimization for revenue growth and a B2C business makes the most sense. In order for the business to be successful and grow revenue and clients need to grow, we will ensure we are starting at the right place.
3. Geographical preference or virtual - Where do you want the business to be located or do you want the business to be virtual? Some people love where they live and want to stay there, others are looking for this as a chance to move, others still do not want to be tied to a specific area but want the freedom work from anywhere. We will be sure we look at this.
4. Investment capital available and financing capability - How much cash do you have available from all sources (including retirement funds) , what can you borrow from the SBA and other sources and what will the business support from a debt service repayment standpoint? All of these questions need to be answered to determine what size business you can buy. Knowing this on the front-end and even getting pre-qualified for a SBA can greatly expediate the process.
5. ROI expectation – cash flow and potential sale value - What do you need to make from the business year 1, year 2 and year 3 and what do you want the ultimate value of the business to grow in value should you want to sell it 5-10 years out? We look at these factors to be sure the business meets your financial expectations.
6. Industry segment - Clients are surprised we have this last; most want to start here. There are so many type of businesses available that until the other five are answered it is impossible to make the right decision. You want the actual segment analysis to have an element of objectivity and subjectively to it. We have look at segments based upon answers to the other categories.